Mon. Night KTFA CC Replay and MilitiaMan Tuesday AM 6-9-2020

KTFA:

Frank26:  6-8-20.....LAUNCH

This video is in Franks opinion

F26: I will talk for the first 30 minutes then our news analysts will come on. Delta is sick tonight and will not be here.

PLAYBACK : 605.313.5163    PIN: 156996#

https://fccdl.in/P6hbvzdySH

https://www.youtube.com/watch?v=nD9YP62Kb1o

Don961:  Hiring a shrinkage predicament

Tuesday 09 June 2020
Mohammed Sharif Abu Maysam

 We are facing a financial crisis caused by low oil prices, and about treatments that target the pressure of government spending, an economy that suffers from structural imbalances that limit the movement of the market in light of reliance on imports to finance domestic demand, and talk about the intention to reduce the salaries of employees - which is the privilege of the first financier of the offer Cash, after declining rates of investment budgets over the years - along with the consequences of the Corona pandemic's repercussions of the available economic activities, which withdrew to the activities of the shadow economy.

The macroeconomic landscape has become a candidate for further deflation in light of these pressing data, which means that consumption rates must decrease at the expense of the commodity supply that is flooding the markets, which filters low inflation rates within the limits of total supply and demand, above all.

Here, two opportunities may arise at the monetary level that many enthusiasts demanded to liberalize the exchange rate, claiming the fear of depleting the reserves of the central bank in the currency auction, and limiting what is said about suspicions of corruption in the money-flowing operations out of the country:

The first relates to the low demand to buy dollars Due to the low rates of cash flow to finance foreign trade, in conjunction with a decrease in the income of the middle class, which will contribute to reducing exchange rate fluctuations, and consequently the possibility of the exchange rate to remain stable or fluctuation at initially acceptable rates, when following the “managed float” method that requires central intervention accordingly To supply and demand in the parallel market, in conjunction with pressure government expenditures.

Frequently, the demand to reconsider the auction of the currency sale or stop it permanently is repeated on the tongues of politicians and observers, so that it has become among the reform steps that have been talked about the intention to apply in the current stage, and the opportunity now appears favorable if the leaks that talk about pressure of government spending in the budget Half yearly to be presented in the coming days.

The second opportunity that can be filtered from this contraction relates to the possibility of raising the interest rate, with the aim of withdrawing the chunky cash block estimated by the Central Bank at about 70 percent of the issued cash. However, in light of the deflationary pressures, this measure can redistribute the monetary mass issued by the central bank between the banking trading scene and the local markets in conjunction with the introduction of modern banking technologies and systems that reduce slack rings and encourage the public to trade online towards reducing cash circulation within the framework of applying Serious to the program of financial inclusion, which means and necessarily the exit of monetary policy from the predicament of hoarding that it has suffered over the years and the liberation from the burden of financing foreign trade, which the liberals consider responsible for the total demand in the local market.    LINK

MilitiaMan:  When they speak of liberalization of the exchange rate they are talking about going into a market economy.This is good for the public welfare. They again are pointing out the pros and cons of what they can or can not do.

We can tell by actions of late with all the educational articles in regard to exchange rates, interest rates, investment, imports, exports, secondary markets, etc. that they are leaning to the below as the end to the financial crisis and will be somewhat painful at first for local goods, but in the medium to long term they will benefit.

 All the countries that have arrived on the scene today, along with those that arrived over the last few weeks, show that they are going to have permission for their currency to be exchanged with other foreign currencies with international acceptance.

They have been very vocal about it lately and i sure like to see them pointing things out. Getting the chunky back into the system, will be beneficial in the re investment of their own country.. Very good sign..  imo ~ MM

"The exchange rate liberalisation is a major ingredient of economic liberalisation. The
exchange rate liberalization means the permission for the currency to be exchanged with foreign
currencies for economic transactions that promote the economy and economic welfare of the
general public (Adam et al., 2010). The exchange rate liberalization is the route to link the
domestic economy with the global economy in pursuit of economic benefits advocated by
principles of international economics." 

Don961:  The agricultural sector needs promising investment plans

Friday 05 June 2020   Baghdad / Al-Sabah 

  The reform paper presented by the Iraqi Institute for Economic Reform, prepared by a specialized team of economists, addressed all the problems faced by the national economy, as it stood at the agricultural sector, which is a permanent oil when it finds promising investment plans that make it a real supporter of the sustainable development process. 

A member of the paper preparation team, Kazem Al-Oqabi, said: "The agricultural sector is an important axis in the economic development process that Iraq seeks, as it suffers from weak protection measures for the agricultural product, control and control over imported agricultural products, as well as high production costs for agricultural crops." 

tax

He pointed out that «the reformist paper focused on the importance of imposing a tax on imported agricultural crops and their products provided that the tax rate is calculated on the basis of the cost of the local product inside Iraq to achieve a competitive advantage with the local agricultural sector, and the approval of the import license only to enter crops and agricultural products and prevent irregularities, and the adoption of electronic governance And the completion of the institutional linkage between the state ministries and the formations concerned with this activity to ensure that the products allowed to be entered are properly entered, as well as to stop working with the exceptions granted contrary to the laws on plant and animal wealth and not to give any other exception ».

National products

And he stressed «the necessity of obligating all government ministries and institutions that have a feeding program for their affiliates to purchase national plant and animal products, and to support farmers, farmers and investors who support the agricultural sector with oil derivatives in terms of quantity and price as well as electrical tariffs to contribute to reducing production costs, and provide full support to establish agricultural areas on Like the industrial zones, the foundations of their establishment are available through the availability of large areas and water in the country, including groundwater, as well as providing great support to farmers and farmers in providing them with greenhouses, sprinklers, watering pumps, fertilizers, pesticides, etc. at subsidized prices that are exempt when achieving abundant production and also when Export ».

Dairy products

He pointed out that «the reform paper showed the importance of providing significant support to establish feed production factories for livestock and poultry, which are a basis for making dairy products and canning meat through raising livestock, cows and poultry, and providing subsidized loans to farmers, preferably without interest and incurred by the government in exchange for the output that farmers will provide And also for investors in the field of livestock, poultry and food industries dependent on agricultural products such as packaging factories and others, up to the establishment of penalties for farmers, farmers and investors in the event that they do not use the loans for the purpose for which they were granted with a comprehensive follow-up to those projects ».

Export box

Al-Oqabi asserted that “the preparation team stopped at the importance of preventing the import of crops and agricultural products to ensure the protection of local agricultural products, which will result in expanding the production of these crops locally or by imposing large fees on crops entering the country with a high rate to encourage farmers to cultivate and emphasize the benefit of a fund law. Exporting, encouraging handicrafts, domestic and timber industries especially in the southern regions and introducing modern technologies in manufacturing and providing the necessary support for that, as well as recovering the amounts of agricultural initiative loans that deserve to be recovered before the year 2020 and recycling them to other beneficiaries, and establishing a project of agricultural complexes to market agricultural products to encourage farmers to focus in Increasing agricultural production 

By facilitating marketing, reducing its cost and encouraging food industries that depend on agricultural products such as tomato paste production factories, juices, dairy and dairy products.

Industrial projects

In another axis, the paper focused on adopting the principle of partnership between the public and private sectors in the implementation of medium and large industrial projects to establish joint-stock companies offering their shares in the Iraq Stock Exchange, and that is possible within the available laws (21) and (22) for the year 1997 as well as starting a transformation program ( 2) A public company or factory to a contribution according to Articles (35-38) of the Public Companies Law No. 22 of 1997 in the light of its success, preparing and implementing a long-term transformation program.

The reform paper also stood at the adoption of the idea of ​​the industrial dinar because it would open the door to re-exportation, which is the most important in the matter of industrial development, because without it, the money used in importing in non-Iraqi currencies, no matter how they will not be recovered and will be wasted locally, will also encourage the main global suppliers to enter into The participation of the Iraqi industrial establishments for marketing in the surrounding markets first and then global according to the need because of the real competition for international prices.  LINK

MilitiaMan:  This sure sounds good to me.. industrial Dinar?  Which is said to be the most important in the matter of industrial development is openly being talked about!!  

It will encourage global suppliers to enter into and participate in establishing surrounding markets..  Re-exportation seems to be bringing business home and not only that, but that their currency apparently will be repatriated to her shores along with other foreign currency to support her foreign reserves

It is late... I lol sleep on this one.. lol  -MM

KTFA Members "News and Views" Monday 6-8-2020

KTFA:

Don961:  Prime Minister Mustafa Al-Kazemi chaired the special session of the Council of Ministers, devoted to discussing financial and economic reform in the country.

Finance Minister: We will open a new page with Saudi Arabia and Kuwait in the economic field

Policy 7/26/2020 23:26 168    
Baghdad today - Baghdad

Finance Minister Ali Abdul Amir Allawi confirmed today Sunday that Iraq will open a new page with Saudi Arabia and Kuwait in the economic field.

Allawi said in a press conference, "His visit to Kuwait was of an economic rather than political nature, as Iraq will open a new page with Saudi Arabia and Kuwait in the economic field."

He added that "Iraq has a fiscal deficit estimated at five trillion dinars per month, and oil gives us approximately 92 percent of the state's revenues, while 25 percent of the national product goes to salaries and allocations," noting that "it will stimulate the private sector to play a leading role in promoting development ".

On OPEC, the Minister of Finance stressed that "the OPEC agreement contributed to the increase in oil prices three times."   LINK

MilitiaMan:  It sure looks like they are again hitting the ground running with reforms. This new PM and his FM are on fire to get things off and running.  The PM held a special session on financial and economic reforms today. They normally meet Tuesdays if memory serves me well. If so this sure supports the urgency, in that having a special session is a good thing. It reeks of urgency.. imo.

Then we see the re balancing of two potentially large partners, both Saudi Arabia and Kuwait. They will need to be fully article 8 imo to re balance the trade and investments with the two countries.. The stopped the auctions about 16 days ago. Liquidity is drying up and inflation is setting in. They need to do business and quickly, or they'll have even further issues. Something they are well aware of and have a cure for.

For that cure to happen they have to choose the right alternative to make it happen whereby, raising the value of their currency to allow them to get on and into secondary markets is one that will work to do just that. Al-Nassery specifically talked about secondary markets, Sukuk was mentioned..

These two countries know full well what is needed and is to come.. They wouldn't be talking if they didn't..

Don't let the articles full you. They mention many reforms and time frames. There are reforms for the government for instance that may take 30-60-90 days. So be careful on how things read at first glance. ~ IMO We are in a very awesome place these days.. So lets see the balancing act get started!! lol imo ~ MM

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Don961:  Mourning for {Morning}: The 2020 budget will be biannual

Monday 08 June 2020
Baghdad / Omar Abdul Latif

 Deputy Speaker of Parliament Dr. Bashir Khalil Al-Haddad revealed the readiness of 7 laws to vote during the next stage, while he stressed that voting on the 2020 budget will be in semi-annual or other form to be agreed upon later.

Al-Haddad told Al-Sabah that there are dozens of bills that are expected to be passed in the House of Representatives, including what was read for the first or second time and discussed and ready to vote, including; A draft law on information crimes, refugees, housing abuses and a proposed legal proposal for sports clubs, federations, the Federal Civil Service and the Reconstruction Council, etc.

The Deputy Speaker of the House of Representatives indicated that Parliament asked the government to expedite sending the draft budget law for the year 2020 within a maximum period of the end of the current month to be read and discussed and then vote on it, Indicating that the budget formula that the House of Representatives will vote on will be semi-annual or any other formula to be agreed upon later.

LINK

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Samson:  An upcoming meeting between Al-Kazemi and Parliament to resolve three important financial files

08:42 - 08/06/2020

Member of Parliamentary Finance Committee Magda Al-Tamimi revealed, on Monday, an upcoming meeting between the committee and Prime Minister Mustafa Al-Kazemi and the Minister of Finance to discuss some important financial files, stating that external loans, salaries and the budget will be the preliminary discussions.

Al-Tamimi said in a dialogue followed by / information / that "the committee called for a meeting with Prime Minister Mustafa Al-Kazemi and the Minister of Finance to discuss the government's plans in the file of foreign loans."

Al-Tamimi added that "the upcoming meeting will discuss the salaries of employees and how to pay them, as well as approving the budget for 2020 and the file facing the financial crisis."

She noted that "foreign loans to Iraq amounted to about 25 billion dollars, while the interior was about 38 billion dollars and loans imposed during the Gulf War are 40 billion dollars."  LINK

Samson:  Details of the process of stealing salaries for medical personnel in Baghdad and arresting the perpetrators

8th June, 2020

Baghdad Anti-Crime Directorate revealed today, Monday, a salary theft incident for medical personnel, pointing to the arrest of the perpetrators

A statement issued by the Directorate stated, "After receiving information about theft of an iron safe containing the salaries of employees of a dispensary north of the capital, Baghdad, and by order and direction of the Human Rights Brigade Director of the fight against criminals in Baghdad, a specialized working group was formed to reveal the circumstances of the accident in fulfillment of the efforts of health personnel that are making a lot, especially in the current circumstance

He added, "The work team started within the Anti-Criminal Crime Bureau (Al-Zuhur) in the Directorate of Anti-Crime of Baghdad, which is affiliated to the Ministry's Police Affairs Agency in the Ministry of Interior, after taking the fundamental approvals to investigate and collect information and go to the accident site in record time and within hours, only one of the workers in The clinic for suspicion and suspicion is available, and upon investigation, he admitted that he had stolen the treasury and inside it (seventeen million Iraqi dinars) and with the help of two other defendants

And she confirmed, "They were arrested as well, and in their terms the treasury and the amounts stolen inside it were seized, and the necessary legal measures were taken against the three accused and arrested according to Article (444) Q   LINK

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Samson:  A parliamentary committee: the region will hand over Baghdad, within days, the sums of oil as a maturity of 250,000 barrels

8th June, 2020

The Oil and Energy Committee in the House of Representatives said on Monday that the Kurdistan Region will hand over the central government the oil sums as a maturity of 250,000 barrels.

And the member of the committee, Amjad Al-Uqabi, stated that "the next few days will witness the delivery of oil sums by the region to the government as an entitlement for 250 thousand barrels."

Al-Oqabi pointed out that "the oil and gas law will include mechanisms for dealing with the oil of the region and Basra, as it will be through SOMO," stressing that "it is among the important laws that will be approved during the coming days."   LINK

PompeyPete:  THIS SMACKS OF HCL AGREED AND SORTED...

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Samson:  Representatives present to the government four proposals to achieve urgent economic and financial reform

8th June 2020

A number of members of the House of Representatives presented, on Monday, four proposals to the government after the completion of the cabinet, to achieve urgent reform in the difficult economic and financial situation the country is going through.

The deputies, Qassem Al-Araji, Muzahim Al-Tamimi, Adnan Al-Zarfi, Muhammad Shia'a Al-Sudani, and Muhammad Sahib Al-Daraji, said in a joint statement on the occasion of the completion of the ministerial cabinet, “Mawazine News / received a copy of it,” after the Parliament’s vote on Saturday 6/6/2020 On the seven ministries and the completion of the government formation, we find it obligatory for us to recall that the cabinet formation that the Prime Minister and political forces efforts ended and won the confidence of the House of Representatives was not at the level of what the people were looking forward to, and what came out of the thousands of demonstrators and protesters for it and the fallen victims Martyrs, in order to achieve reform and change."

The representatives added: "But despite the observations that we have on the government or some of its elements at the very least, this step put everyone, especially members of the government, in front of their direct responsibilities, and they have to roll up the sleeves of the grandfather. The work stage started and not before the government, but not before the entire system of government.

More time, the people have waited a long time, and now they expect all of us and the government to do things, not words." And they continued: "As we recall what was mentioned in the proposals that we put forward in order to achieve urgent reform in the difficult economic and financial situation and if it is not possible to do everything necessary during the short lifespan of the government, which should not exceed one year, we confirm that it must focus its attention Main points occupy the utmost importance in the life of the people and the fate of the country, including the following:

First: Taking practical steps to combat corruption and overthrow large heads in this file, regardless of the political or societal parties that stand behind them and surround them with legitimacy and protection. And not only make rhetoric; Unfortunately, as usual. It has an unenviable future ahead of it, as people's patience is almost exhausted. And they no longer endure energy.

Second: Serious concrete steps must be taken to impose the prestige of the state, the rule of law, maintain order and address armed gangs and outlaws without discrimination or favoritism; People were fed up with gangs at the expense of the state and the rule of law.

Third: Urgent steps must be taken in terms of improving services, whether on the health level and bypassing the Corona pandemic crisis or the economic and financial crisis and the resulting measures, provided that the salaries of employees and retirees are not compromised.

Fourth: The government must provide everything that can convince the citizen of its seriousness and its keenness to hold urgent elections, and not only that. Their rejection of what is happening, as happened in the recent elections, which we are still experiencing unfortunately bad effects.”

They affirmed by saying:“ As for us as part of the legislative authority, we will spare no effort in supporting and paying it and doing everything necessary for its success in its work and alleviating the suffering of our patient people, provided that it adheres to what she promised to the extent of her seriousness and her relentless pursuit to achieve the above and to the extent of her commitment to implementing her government program, especially as it relates to ending corruption and restricting it." LINK

KTFA Members "News and Views" Saturday 6-6-2020

KTFA:

Clare:  FAMILY FRANK WANTS TO UPDATE US ON FF INFO AND IT IS VERY BIG AND HAS TO DO WITH DR. SHABIBI… FRANK WILL DO A YOUTUBE TONIGHT AROUND 7 PM EST

Ryan1216:  We have a complete fully seated GOI!!!

GodLover:  Game on! IMO!!!

Samson:  Parliament passes vacant bag candidates and succeeds in completing the Al-Kazemi government

6th June, 2020

On Saturday, the House of Representatives voted on the seven vacant portfolios in the government of Prime Minister Mustafa Al-Kazemi.

The media department of the parliament said in a statement received to Shafaq News, "The House of Representatives voted on Ihsan Abdul Jabbar Ismail, Minister of Oil, and Fuad Muhammad Hussein Bakki, Minister of Foreign Affairs."

She added, "The Council also voted on Salar Abdel-Sattar Mohamed Hussein, Minister of Justice, Alaa Ahmed Hassan Obaid, Minister of Trade, and Muhammad Karim Jasim Saleh, Minister of Agriculture."

Also, the House of Representatives voted on Ivan Faek Yaqoub Jaber, Minister of Immigration and Displacement, and Hassan Nazim Abdul Hammadi, Minister of Culture, Tourism and Antiquities.

The House of Representatives also voted to authorize the Prime Minister to create a state ministry to be its minister for the Turkmen component in order to encourage components and participate in state building.

In turn, Prime Minister Mustafa Al-Kazemi said that completing the cabinet is an additional motive for implementing the ministerial platform.

He added in a tweet to him on Twitter, that "completing the ministerial cabinet with the House of Representatives voting on the names we presented, is an additional motive to implement the ministerial curriculum, and to fulfill the obligations of the stage and abide by our promises before our people who are waiting for actions, not words."   LINK

4Cash:  Great find Samson looks like GOI is ready for some change  in MR. IMO… Now CBI push the button!!!

Jerry1971:  GREAT News Indeed all the things are being done at a brisk pace now even the GOI is complete ….only the budget needs to pass some time shortly imo

Briscom:  I recall about 3 month s ago, Mr. Frank posting this scenario:

1.  Prime Minister
2. Cabinet 
3. Rate

OR

1.  Prime Minister
2.  Cabinet 
3.  Rate/Budget (same time)

Surely now, we are getting closer by the second!    Blessings

JJimmyJJ:  I also remember Frank's famous couplet: 
"The budget needs the rate. The rate doesn't need the budget."
It seems like Iraq has a hot date to the prom that they want to be sure to be ready for.

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Samson:  Parliamentary law reveals the most prominent laws that will be legislated in Parliament

6/6/2020 13:30

The Parliamentary Legal Committee revealed the most important laws that will be discussed and passed by the parliament in the coming days.

Member of the Committee, MP Hussein Al-Oqabi said in a statement to the Iraqi News Agency (INA), today, Saturday: "The House of Representatives will discuss the laws referred during the coming days that relate to tackling the economic and financial crisis and getting out of it, as well as the laws that relate to filling the federal revenue deficit." "The second law that will be passed is the Federal Budget Bill of 2020."

He added that "the third stage of passing laws will include the Federal Court Law," noting that "the retirement law is contained within the House of Representatives and can be read, in addition to the election law and the distribution of electoral districts."

Last Wednesday, the House of Representatives finished the first reading of the draft domestic and foreign borrowing bill to finance the fiscal deficit for 2020. The council also voted on a resolution that obliges the Iraqi government to send the 2020 budget law this month.   LINK

JJimmyJJ:  Whoa. Iraq isn't messing around these days. I've never seen them act this way-- with urgency. 

Not only are they getting things done, but they are announcing their intentions to continue getting the last steps of the monetary reform done through resolutions. 

IMO, this is their version of "Baby, I know I've lied to you many times before,  but this time I really mean it-- so I got my promise notarized."

Samson:  International welcomes the passing of vacant ministries in the Al-Kazemi government

6th June, 2020

Jenin Hennes-Blackshart, the United Nations Special Representative in Iraq, today, Saturday, welcomed the passing of vacant ministries in the government of Prime Minister Mustafa Al-Kazemi. 

"We welcome the passing of candidates from the remaining ministries in the government of Prime Minister Al-Kazemi," Blashart said in a tweet. 

She added, "The United Nations reaffirms its support for Iraq in facing the current health, economic, social, political and security challenges."  LINK

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Samson:  World Gold: Countries’ purchases are down for April and Iraq hasn’t been buying since 2018

6th June, 2020

The World Gold Council announced, on Saturday, the decrease in purchases by central banks of countries for the month of April last, between that Iraq has not bought gold since 2018

The Council said in a statistic published on its website during the month of June and viewed by "The Economy News", "The purchases of gold by the central banks of countries decreased for the month of April, as the banks bought only 31.6 tons of gold, which is 24% less than the month of March and 35% less. For the month of April 2019

He pointed out that "Turkey is the only country that bought large quantities of gold in April, as its gold reserves grew by 38.8 tons, which raised its gold reserves to 524 tons and ranks 12th in the world

He added, "Iraq has not purchased gold since 2018, by which it bought 6.5 tons to add it to its reserves of 96.3 tons." He explained that "Iraq still maintains its fifth position in the Arab world after each of Saudi Arabia, Lebanon, Algeria and Libya, and ranked 38th globally out of 100. Countries included in the international financial statistics for the global reserves of gold

It is noteworthy that the World Gold Council, which is based in Britain, has extensive experience and deep knowledge of the factors that cause the market change and its members consist of the largest and most advanced gold mining companies in the world   LINK

Samson:  Trump orders the withdrawal of thousands of American soldiers from Germany

13:17 - 06/06/2020

US President Donald Trump has instructed the Pentagon to withdraw thousands of American soldiers in Germany at the start of next September, according to the Wall Street Journal, which indicated that the move would significantly reduce the US military presence in Europe, and embody Also the growing differences between Washington and Berlin over military spending and some security files.

The Wall Street Journal stated that Trump's instructions to reduce the number of American soldiers present in Germany from 34,500 to 9,500 only, which means reducing the number of American soldiers stationed temporarily or permanently on German soil by 25 thousand in one go.

The newspaper added that the number of American soldiers in Germany could reach 52,000 while alternating teams or conducting military exercises and exercises.

The move, as the Wall Street Journal made clear, brought criticism of the US administration by former senior defense officials and lawmakers in Congress, as it would weaken the partnership with a strategic ally like Germany in exchange for strengthening the power of opponents of the United States of America.

The newspaper quoted US experts as believing that Russia may, moreover, welcome the apparent dispute between two key NATO countries, although Moscow has not publicly commented on this. LINK

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Samson:  World Bank: Countries Can Now Take Steps To Rebuild After The Fallout From Corona

6th June, 2020

The World Bank Group said that the Corona pandemic and economic closures deal a severe blow to the global economy, especially the poorest countries, noting that developing countries and the international community can now take steps to accelerate the pace of recovery after the worst of the health crisis and mitigate Long-term negative effects.

This came in analytical chapters published today from the World Economic Prospects report issued by the World Bank Group twice a year.

The report stresses that the application of short-term response measures to address the health emergency and the provision of basic public services must be accompanied by the adoption of comprehensive policies to promote long-term growth, including through improving governance systems and business environments, expanding investment in education and public health and improving the level of results achieved.

 To increase the resilience of economies in the future and their resilience to shocks, many countries will need systems that can build and sustain human and material capital during the recovery phase - using policies that reflect and even encourage the need to adopt new forms of jobs, businesses and governance systems after a pandemic recedes.

The publication of this analysis comes ahead of the release of the full report, which will include the Bank’s latest forecasts for the global economy, on June 8.

On this, World Bank Group President David Malpas said: “The scale and speed with which the Corona pandemic and economic closures have affected the poor around the world are unmatched in the modern era. Current estimates show that 60 million people could fall into extreme poverty in 2020. Those estimates could rise further, and the reopening of advanced economies would be the major determinant in this regard. ”

 "The choices that countries make today about policies - including increasing debt transparency to attract new investment, accelerating progress in digital connectivity, and a strong expansion of cash safety nets for the poor - will help reduce damage and build a stronger recovery." One of the most challenging development challenges in the post-pandemic recovery phase is financing and building productive infrastructure.

The severe pandemic recessions are likely to exacerbate the slowdown in economic growth and productivity for several decades, the two main sources of improved living standards and poverty reduction. Compounding the problem of inequality resulting from the slowdown in growth, the poor and the most-favored are among the hardest hit by the pandemic and the economic shutdown - including through infection, school closures, and declining remittance flows.

Public health protection measures have already underestimated the fragile global economy, causing severe recessions in developed economies, emerging market countries and developing countries alike. The analysis indicates that emerging market countries and developing economies suffer from weak health systems, those that rely heavily on world trade, tourism or remittances from abroad, and those that depend on primary commodity exports will be severely affected.

In the long term, the pandemic will leave permanent damage through many channels, including low investment, erosion of material and human capital due to the closure of business facilities, dropping out of school and job losses, withdrawal from global trade links, and supply chains. These impacts will weaken potential output - that is, the output that the economy can achieve at full employment and sufficient capacity - and labor productivity for a long time to come. Previous weaknesses, declining benefits for the demographic dividend, and structural imbalances will exacerbate severe depressions that accompany the pandemic.

“When the pandemic occurred, many emerging market and developing countries were already at risk because of their debt escalation to record levels and a steep decline in their growth rates,” said Sila Bazarbasioglu, World Bank Group Vice President for Equitable Growth, Finance and Institutions. Combined with structural imbalances, this situation will exacerbate the long-term damage of the severe depression accompanying the pandemic. Urgent measures are necessary to reduce the damage, rebuild the economy, and make growth more robust, solid and sustainable. ”

Policies to rebuild in the short and long term require strengthening health care services and developing well-targeted stimulus measures to help stimulate growth.

This includes efforts to preserve the private sector and provide funds directly to people, so that we can see a faster return to company incorporation rates after the pandemic has receded, and during the mitigation period of the pandemic, countries should focus on strengthening economic activity by providing targeted support to provide liquidity to families Corporations and continued basic government services. At the same time, policymakers should be vigilant and cautious to face the possibility of financial turmoil.

It is essential during the recovery period that countries calibrate the possibility of reducing public support, and the broader development challenges must be targeted. The analysis discusses the importance of permitting the allocation of new capital in an organized manner for the benefit of the productive sectors in the new structures that will emerge after the pandemic recedes. For this to succeed, countries must undertake reforms that allow capital and employment to be adjusted relatively quickly - accelerate dispute resolution, reduce regulatory and procedural barriers, and reform costly support systems, monopolies, and protected state-owned enterprises that have slowed the pace of development.

For many countries, the strength of their economies in the future will depend on their ability to build and maintain their human and material capital during the recovery phase. In a post-Corona world, policies that reflect and encourage new forms of jobs, business and governance systems will be essential. Promoting transparency in financial links and investment would also help to rebuild confidence and facilitate investment growth.

Restrictions on movement and movement, and the global recession, led to the largest one-month drop in oil prices in March.

The drop in oil prices, which was mostly due to weak demand, was followed by disputes between oil producers over the targeted production levels and a sharp increase in global oil stocks. The analysis also detailed the implications of the fall in oil prices for the global economy, especially for oil producers from emerging market economies and developing countries.

In the short term, restrictions on transportation and travel will remain, but low oil prices are unlikely to provide significant support to growth, but the damage the pandemic may have exacerbated by increasing financial distress for producers. Low oil prices are also likely to give little support, at best, to global activity at an early stage of recovery.

For his part, Ayhan Kossi, Director of the Development Prospects Group at the World Bank, said: “Emerging market economies and developing oil-exporting developing countries have entered the current crisis and their fiscal positions have weakened after they relied on their reserves to overcome the effects of the oil price drop in 2014-2016. In addition to the unprecedented public health crisis, these economies are now experiencing severe economic recessions with a sharp decline in their export earnings. Even if oil prices rise as global demand for oil recovers, the recent fall in oil prices is another reminder to oil exporting countries of the urgent need to continue reforms aimed at diversifying their economies.”

Low oil prices currently also provide an opportunity to review energy pricing policies, as oil importers from emerging and developing countries should eliminate expensive support programs and allocate their limited financial resources to higher priority expenditures that include improvements in public health and education programs.

The World Bank Group's response to the Corona Outbreak

The World Bank Group, one of the world's largest sources of financing and knowledge for developing countries, is implementing rapid and wide-ranging measures to help these countries strengthen their response to the pandemic. The Bank Group supports health care interventions, works to ensure the flow of supplies and vital equipment, and helps private sector organizations continue their work and maintain their employees. It will provide up to $ 160 billion in financial resources over fifteen months to help more than 100 countries protect the poorest and most caring groups, preserve the private sector, and promote economic recovery.

 This includes $ 50 billion in new resources from the International Development Association in the form of grants or very concessional terms.  LINK

MilitiaMan and KTFA Members Friday PM "The Theme is Activate" 6-5-2020

KTFA:

Don961:  Our private banks and government support

Friday 05 June 2020  Samir Al-Nassery

The emergency cell of financial reform, nor its members, the complex economic conditions, repercussions of the spread of the Corona virus, political interactions and conflicts, which have resulted in damage to the national economy, stopping the economic cycle, and economic stagnation. The real economist.

And since the banking sector is the main link in revitalizing the economic process, the current conditions have contributed to the stopping of banking activity, especially the private banking activity since the outbreak of the demonstrations in October 2019 and until now what has had its clear effects on the lack of liquidity, low deposits, credit, loans and banking facilities due to the stopping of working hours.

During the comprehensive roaming ban for more than 30 days and reducing the permanence and banking activity during the partial roaming ban, which led to a significant decrease in revenues, despite the many measures taken by the central bank in providing a package of facilities to banks, including enhancing its liquidity by reducing the legal reserve ratio, postponing loan installments, and stopping and postponing fines imposed on Banks.

According to the analysis of official data and statistics, the structure of the Iraqi banking sector consists of 7 government banks that capture 86 percent of the profits and only 13 percent of the total annual profits achieved at the total level and that the goals set for the banking sector in all government programs of previous governments are focused on lending For the sake of development and considering banks the lever of development and restoring confidence with the public and achieving financial inclusion in the sense of expansion and spread by providing banking products and services, practicing real banking work and digital transformation of the banking sector.

Through an analytical view of the reality of the Iraqi economy and the challenges facing the financial and monetary policies, in particular the stimulation and revitalization of the economy by bank financing and banking facilities, the above challenges stand in front of its implementation at the present time despite the great efforts made by the Central Bank since 2016 to implement its strategic objectives for years (2020-2016), which achieved important and fundamental goals, most notably the structural, structural and technical developments in banks, increasing the proportion of financial inclusion, investment in human capital, and taking a steady step towards stability in the monetary system and achieving stability in the exchange rate since 2018 and still, but private banks are in urgent need And immediate to government support by studying its problems in the current circumstance in the emergency cell for financial reform formed in the cabinet for the purpose of saving some private banks from collapse, taking into account the following: - 

 Firstly, the nature of banking activities depends on the nature of the activities of the economic sectors, and as long as the economic activity is concentrated in trade (imports), the banks' activity remains focused on external transfer and what is related to it .. So unless other sectors (industry, agriculture, tourism, etc.) move to expect the diversification of the activity The banker.

Second, the legal environment must be provided and the rule of law should be extended in order to eliminate the phenomenon of defaulting in the repayment of loans, as bad debts amounted to 7 trillion dinars, and they constitute a large percentage of the total credit granted, and thus the banks ’reluctance to provide loans and banking facilities 

Therefore, we see that the decisions of the Council of Ministers and the Economic Affairs Committee of the Council of Ministers that were previously issued to support the banking sector, especially private banks, are not activated. It led to obstructing the activities and activities of private banks and greatly affected their liquidity, revenues, and deposits for that. For the purpose of overcoming the banks crisis, in a way that ensures banks moving from the role of banking to the developmental role and revitalizing banking work in the current circumstance, it requires the government, in particular the esteemed cabinet and the emergency cell, to activate the decisions previously issued Cabinet and Economic Affairs Committee.

 Third: Activating all the decisions of the Economic Affairs Committee to support private banks, especially the following: -

1 ‐ The Ministry of Finance changed its decision not to accept it to open bank accounts for the ministries and departments of the state in private banks and confine them to government banks according to its letter 207 on 31/1/2019

2 ‐ Activate the decision to allow ministries and government departments to open documentary credits in private banks up to $ 50 million without going through the Ministry of Finance and the Iraqi Trade Bank.

3 ‐ Activating Council of Ministers Resolution No. 110 of 2009 and Resolution of the Economic Affairs Committee 141 on 20/2/2012 on transferring government bank documentary credits of up to $ 30 million to private banks through the Trade Bank of Iraq.

4 ‐ Activating Economic Affairs Committee Decision No. 253 of 2015.

Regarding the acceptance of sukuk certified by private banks to pay insurance, customs fees and taxes.

Fourth ‐ Activate Cabinet Resolution No. 378 of 2018 regarding the collection of government fees in state departments through electronic payment.

Fifthly: Activating the Financial Services Court formed in accordance with the Central Bank Law No. 56 of 2004, and the Court may refer cases that require referral to the competent courts in accordance with the applicable penal law.

Sixth: Bad debt claims by clients in private banks are considered urgent cases and excellent debts, similar to government debts.

Seventh, in addition to the efforts exerted by the Central Bank, the government also needs to work to create conditions and take measures to help private banks obtain the internationally accredited credit rating and thus enhance international banking relations with correspondent banks.

Eighth - The Ministry of Finance compensated for the damages in the fixed and cash assets lost by the branches of private banks, which amounted to (37) branches in the governorates occupied by ISIS in 2014 and are documented with the Central Bank of Iraq.

IX ‐ Activating Cabinet decisions No. 313 of 2016 and No. 218 of 2017 regarding localizing employee salaries and requesting government departments to localize their salaries as per their desire and not directing them to localize salaries exclusively in government banks.  LINK

MilitiaMan:  Thanks DON961... I am sure the activation of things at this time is so very welcomed to the world at a large. The third Item: Shows they have special attention to  #1 - #4. They are seemingly addressing specific needs of the international Islamic world to come into Iraq to do business. At least Item #4 of the Third is.. SUKUK is in part, international bonds that are very popular and meet strict Sharia Law.

This speaks of what they were going to do years ago and didn't. Now Samir Al-Nassery is telling us what is on the table for activation on a Friday.. Interestingly enough it is well before their markets open again. Well keep this in mind.

We know they have a plan and one plan they have spoken about is the secondary markets with their currency to be able to get revenues or internal borrowing. Selling Bonds is how they can do that. Bonds that are SUKUK and meet strict Sharia Law will be where millions of investors will go to.

Thus, demand should not be an issue. As Sukuk has safety mechanisms in place. This is telling me they are now going into the new social market economy.

I think we can all smile.. imo Now lets see what Alak has to say.. He is apart of the Emergency Cell, imo.. ~ MM.  

"Bonds can be bought and sold in the “secondary market” after they are issued. While some bonds are traded publicly through exchanges, most trade over-the-counter between large broker-dealers acting on their clients' or their own behalf. A bond's price and yield determine its value in the secondary market."

"Sukuk bonds: An Islamic finance product that is similar to a western-style bond. The bond pays a return to investors, but is structured in such a way as to be compliant with the Sharia principle of not charging riba or interest."

1.2 Islamic securities market overview

The Islamic finance industry encompasses the full spectrum of financial services activities, including banking, insurance and securities. The industry has, from a small base, experienced significant growth over recent years. Some estimates put market growth at approximately 15% per annum over the last three years, with a current total worth of approximately $800bn worldwide as of June 2008.

The development of Islamic finance in the last two decades of the 20th century consisted largely of the expansion of banking and trade-related financing activities. Islamic securities markets (and insurance markets) had  until the turn of the century lagged behind, but are now also experiencing significant growth themselves, much of which has been in Sukuk (Shariah compliant securities) and Islamic
funds.

Don961:  Member of Parliamentary Finance: The country's financial situation is very critical and we are working to get out of the crisis

Economie 06/2020 2020 18:05 426    
Baghdad today _ Baghdad 

Member of the House of Representatives for the Finance Committee, Hanin Qaddu, confirmed today, Friday, that the country's financial situation is in a critical condition as a result of the continued decline in global oil prices, while he stressed that the Committee continues to hold its own sessions to reach effective solutions to the crisis.

Hanin Qaddo said, in an interview with (Baghdad Today), that "the economic and financial situation of Iraq is very critical as a result of the depression in the world and the continued decline in global oil prices."

“The Parliamentary Finance Committee is in a constant session in order to find effective solutions to avoid the current crisis, and try not to prejudice the salaries of employees and retirees,” Qaddu added.  A member of the Finance Committee in Parliament stressed: "There must be alternative options in order to get the government out of the impasse it is going through, regarding its obligations to provide the salaries of employees."

And revealed the member of the Finance Committee, Faisal Al-Issawi, (Saturday 30 May 2020), the formation of a committee from the government and parliament, to address the economic crisis that Iraq is going through, while disclosing the participants in its membership.

Al-Issawi said, in an interview with (Baghdad Today), that "a committee has been set up to solve the economic crisis headed by the Chairman of the Finance Committee in Parliament Haitham al-Jubouri, whose mission is to present proposals that ensure continued payment of salaries of employees, retirees and social assistance."

He added, "The committee formed to solve the economic crisis submitted 90 proposals, none of which have been approved yet, except that during the current week, appropriate options will be put in place for the government and parliament to cross the crisis."

Al-Issawi also pointed out that "reducing the salaries of employees is an unrelated proposition, while compulsory savings and unimportant allocations were discussed."

He pointed out that "the saving mechanism according to the proposal starts from salaries that amount to one million, where 5% of it is saved, while salaries of a million and a half million, up to two million, are saved 10%."

Al-Issawi pointed out that "the proposals talked about the revenues of the border outlets, how to manage them, activate taxes, collect electricity, reduce expenditures in the state, unnecessary allocations, and reduce the salaries of presidencies and higher levels."  LINK  

MilitiaMan:  Another reiteration of what is going on. But, Al-Nassery just told us what he is doing and that is going into the social market economy. That includes the Secondary Markets..

They are not going into the market economies of the world at a program rate.

The theme is not wait and stagnate it is ACTIVATE!! They say in the current week to come.. Hey!!!! They are not supposed to give a date... lol ~ But, hey I am not complaining.. lol  ~ MM

Don961:  Without prejudice to the salaries of employees .. A member of Parliamentary Finance offers several alternatives to overcome the crisis

Policy 05/06/2020 09:43 240 Editor: am      Baghdad today - Baghdad

Member of the Parliamentary Finance Committee in the House of Representatives, Majid Al-Waeli, on Friday (05 June 2020), presented several alternatives to overcome the stormy financial crisis in the country, without touching the employees ’salaries, while he hinted that the committee will hold a meeting with Prime Minister Mustafa Al-Kazemi and the Ministry of Finance next week .

Al-Waeli said in a press statement, "There are many alternatives that can mitigate the severity of the current crisis significantly, including an increase in the price of a barrel of oil, which is sold by $ 5 to the refineries of the Ministry of Oil, while the rate of selling it according to the 2019 budget is 60 Dollars. "
And between, "Those refineries buy about one million barrels per day; that is, there is a difference in the price of up to 55 dollars, meaning that there is a price difference of 55 million dollars," noting that the treasury can supply about 50 percent of this amount, i.e. up to 20 25 million dollars. "

He added, "The other alternative is to reconsider the sums of real estate sold cheaply and rented with sums, especially those that are located in the heart of the capital and in distinct areas of it, as it can be re-evaluated again because some of them are inhabited without paying any sums for the rents in the first place." He pointed out that "the government should also pay attention to the debts arising from telecommunications companies, especially mobile phones and the Internet, and their collection, which amounts to millions of dollars."

Al-Waeli warned, "The amounts owed by the border crossing points, customs and taxes after being properly and clearly monitored, as well as transport companies, despite the existence of a crisis in that at the present time, all of which can be invested to alleviate the economic crisis caused by the drop in oil prices."

He explained, "The executive bodies should take great care in the issue of the agricultural calendar and protect the product, by preventing the entry of unnecessary agricultural crops available in the local market, or imposing customs prices on the importer from them to equate with their local counterparts as they are cheaper than what exists in the Iraqi market, which leads Consequently, to revitalize the agricultural sector, especially in conditions of curfew, by paying attention to the agricultural lands owned by some citizens and whose crops are sufficient for consumption by them, their families, and their neighbors.

He pointed out that "the committee has also proposed to raise the customs tariff for raw raw materials, after the Iraqi industrialists were harmed by them and those who import the raw material, to show then that their prices are more than the price of the ready-made imported material, which leads to the closure of the factory and the layoff of workers, while imposing a tariff On imported materials, he will make them in competition with the local product, "noting" the necessity of encouraging the national product and making a price difference between it and the importer. "

He continued, saying: "It is possible to raise the exchange rate of the dinar against the dollar, even if only in a small percentage that corresponds to the vision of the central bank, after deliberating between it and the financial committee on this issue, despite the first refusal of the matter as a financial policy, but the committee is trying to hold the stick from the middle and the possibility of implementing this matter even a few numbers and gradually maintain the value of the Iraqi dinar against the dollar " .

Al-Waeli indicated that "there is an expected meeting of the Finance Committee with Prime Minister Mustafa Al-Kazemi and the Ministry of Finance next week to present those alternatives before it and implement what can be implemented from them."

And he added, "The committee is in the process of preparing an integrated study in the light of the reports submitted by both the central bank on the financial crisis and the government as a vision by the advisers' body, which dealt extensively with employee deductions as a solution to overcome the financial crisis."
The government of Prime Minister Mustafa Al-Kazemi faces several problems, including the country's severe financial crisis, the emerging Corona virus crisis, and low oil prices.  LINK  

MilitiaMan:  The latest theme is next week? lol That theme of next week seems to fit with the ACTIVATION theme from Al-Nassery, as well. Then there is the implementation theme that is also noted to be one to make my cheeks hurt..  !

They are to present alternatives next week and one they mention is raising the exchange rate before they implement the alternatives... lol Ya think? To get to a market economy they will need that done.. Oh ya!  imo ~ MM

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Osmosis:  What do they mean by "raising the value a small percentage" ??  

MilitiaMan:  My view is they are basically giving out information about what they are going to do but, are being shy about it. Think about it they can't say hey everyone were dropping three zeros to raise the value of the IQD this weekend..

Look at this way, it is possible they mean drop a few numbers. Well zeros are numbers. They just make it sound minimal. imo They will need a strong currency to get into the International and Global Stage.

The activating of the Economic Affairs will require it. For instance the ISX  linking to the NASDAQ  is linking to secondary markets, just as the Forex is. They will need to be able to sell their Bonds in a secondary market.

They will not sell bonds successfully at a program rate but, with a international Article 8 compliant one? Sure can. imo The ISX and FX have rules that dictate level of participation. They have minimum requirements to trade.  A program rate is not one them... lol imo

They are telling us today a mosque day, that they are in this "current week" getting information from the Crisis Cell and out of the 90 items that were presented, ten +- are in the position for the PM to make decisions on in this "current week".

One of them happens to raising the value of their currency by a few numbers,. That is what I expect to be in the running, as it makes the most sense.

Think about it. They drop a few numbers (000s) and apply an international calculation, they would be able to get into the secondary markets. They say they are going to have the items to the PM during this "current week" so that "next week" they can implement the decisions on the items that will work to get them out of the financial crisis.

The ISX has not said they were going to postpone opening next week again. This current week is still today and tomorrow, as for the PM getting what he needs.

Next week in Iraq starts Sunday. Same day as the ISX is scheduled to open again.

That information to the PM is said to be before they implement the alternatives that they have to fix the crisis they are in.. Let that sink in..  They will have the data to the PM in the current week for implementation, next week..

They are telling us what they are doing very pointedly.. imo.. As about as close as they can, prior to a full blown announcement. imo.. ~ MM

KTFA Members "Friday News" 6-5-2020

KTFA:

Samson:  Washington: Iraq's leaders should act as a sovereign country and two options before them through strategic dialogue

5th June, 2020

US Assistant Secretary of State for Middle East Affairs David Schenker said that Iraq had two options during the upcoming strategic dialogue between Washington and Baghdad, indicating the need for Iraqi leaders to act as a sovereign country. "The strategic dialogue between the United States and Iraq aims to renew the relationship between Washington and Baghdad," Schenker said in an online seminar with the Middle East Institute.
 
Schenker added that the dialogue aims to "renew and renew our relationship with Iraq, and our strategic dialogue will be renewed next week, and we hope to have a personal meeting sometime in the next July or August, when travel and meetings are allowed."
 
And he added that "the strategic dialogue will chart the future of the relationship and the presence of the American forces in Iraq," adding: "The strategic dialogue allows us to confront Iraqi leaders with a strict choice, if the Iraqis choose to act as a sovereign country, then bilateral relations will continue to bring great advantages to Iraq, and if they do not take this The choice is, we will not be able to maintain our commitment or our presence in Iraq."
 
Schenker added that "the United States aims to build a partnership with Iraq not only in the security sector, but also politically and economically," adding that "this partnership requires that Iraq exercise sovereignty, especially when it comes to external forces, and that Iran's agents threaten the safety of US and Iraqi forces." Alliance and diplomatic personnel."  LINK

Samson:  Trump to Iran: Thank you and let's conclude a grand deal before the elections

5th June, 2020

US President Donald Trump on Friday thanked the Iranian authorities for the release of former US Navy personnel Michael White, who have been in their custody for two years.

On his official Twitter account, Trump re-posted clips showing White upon his return home, saying: "It is great that Michael is in his home country. He arrived a while ago, which is very exciting."

Trump addressed the Tehran government, saying: "Thank you, Iran. Do not wait for the American elections to conclude a grand deal. I will win it and will make a better deal now."

White was detained with the Iranian authorities in July 2018 during a visit to meet a woman who had communicated with her over the Internet and had romantic relations with her, and was sentenced to ten years imprisonment for insulting Iran's Supreme Leader Ali Khamenei and publishing classified information on the Internet.

White was released as part of an exchange deal that also included Iranian scholar and academic Cyrus Asgari, who recently returned to his homeland after the US authorities released him.  LINK

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Samson: "The mission was successfully completed" ... Australia announces the return of its soldiers from Iraq

5th June, 2020

On Friday, the Australian Ministry of Defense announced the return of its soldiers from Iraq, usually "the mission completed

Defense Secretary Linda Reynolds said in her remarks that "the mission has been successfully completed, and the soldiers will return to their homes

Australia contributed to a military training mission in Iraq

Australian and New Zealand forces have been deployed since 2015 in the Taji camp, north of Baghdad, on a mission to train Iraqi forces

It is noteworthy that the Australian and New Zealand forces deployed since 2015 in the Taji camp, north of the capital, Baghdad, for the task of training the Iraqi security forces   LINK

Samson:  Morgan Stanley: Washington will not cancel the trade deal with China

5th June 2020

Morgan Stanley economist believes that the United States will not want to cancel the first stage of the trade deal with China, despite the escalation of tensions between the two countries in recent weeks

The chief economist of the American investment bank, "Chetan Ahia", said on Friday: "At this stage from our economic point of view, as long as the first stage deal continues and there is no renewed escalation in terms of tariffs, the outlook for global growth will be sound

"Ahya" indicated that the administration of US President Donald Trump will focus on the economy at the present time and will not want to cancel the first stage deal, so the risk of renewed trade war between the United States and China and hitting the global economy is unlikely to occur

Donald Trump said last month that he was "very distracted" about ending the deal in January, raising concerns among investors and analysts that the world's two largest economies would return to a tariff war that is hurting the global economy

Ahya also expected markets to see tensions in the short term due to the ongoing tensions between the United States and China   LINK

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Samson:  The Chinese central bank injects 21 billion dollars into the financial markets

5th June 2020

The Chinese central bank pumped $ 21 billion into the financial system through reverse repurchases; In an effort to maintain cash liquidity

The People's Bank of China announced on its website on Friday that it had injected 150 billion yuan (approximately $ 21.1 billion) into the market through seven-day reverse repo operations, at an interest rate of 2.2 percent

The move aims to offset the effect of the entitlement to reverse purchases and repo, to keep the money supply in the financial markets at the targeted proportional limit

Reverse repo operations are a process by which the central bank buys securities from commercial banks and pledges to resell them again

Since the global virus outbreak that infected 6.7 million people globally, China has increased its political support in monetary and financial terms to help companies to overcome the effects of the epidemic on the economy  LINK

Don961:  The US Fed is an influential financial force in the year

- Two Days Ago Researcher Shatha Khalil *

The US Federal Reserve is one of the largest financial institutions in the world, and it determines the liquidity and credit policy in the United States in terms of strength and influence and the policy of controlling the economy that it follows through printing the first currency in the world.

The Federal Reserve was formally established in 1913, but it exists much before this date, and if we follow the beginnings of its emergence with the "emergence of banks" we find the Central Bank of the United States, and we can say that it is the most powerful financial institution in the world. It was established to provide the country with a safe, flexible and stable cash and financial system. It consists of 12 regional federal reserve banks headquartered in Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas and San Francisco, each with responsibility for a specific geographic area in the United States and is the strongest monetary system And financially safe, flexible and stable in the world.

The Fed is independent because its decisions should not be endorsed by the president or any other government official. However, it remains subject to congressional oversight and must operate within the framework of the government's economic and fiscal policy goals. Its duties can be categorized into four general areas:

• Implementing the national monetary policy by influencing the monetary and credit conditions in the American economy to ensure maximum employment, stable prices, and moderate long-term interest rates.
• Supervising and regulating banking institutions to ensure the safety of the US banking and financial system and to protect consumers ’credit rights.
• Maintaining the stability of the financial system and containing systemic risks.
Providing financial services, including a pivotal role in operating the national payment system, to depository institutions, the United States government, and foreign official institutions.

Federalism and Dealing with Crises:
In the 2008 financial crisis, the four largest central banks (America, Japan, the European Union and Britain) pumped nearly $ 13 trillion during 2008-2018, stimulating the global economy and helping it out of its crisis.

As for the time being, and with the crisis of the Covid 19 outbreak and its repercussions on the global economy, the US Federal Reserve was able to pump two trillion dollars in monetary instruments in March and April alone. The Fed is expected to purchase more than five trillion of US corporate debt until 2021, while the European Central Bank pumped $ 3.4 trillion until the end of April, while Japan and Britain pumped another 1.5 trillion. Interestingly, the US Federal Reserve did not purchase Debt for big companies only, but I buy medium and small debt.

Central banks have come to play a greater role in economic policy, and finance ministries are also able to bypass their traditional role in budget control and tend to intervene more contrary to traditional economic theories.

The central bank, which has resumed its gigantic bond purchase program a few days ago, said it will expand beyond at least $ 700 billion in treasury and $ 200 billion in mortgage-backed securities that it initially committed to buying. Instead, officials will buy the bonds "with the funds needed to support the smooth functioning of the market" - including the purchase of government-backed debt linked to commercial real estate.

The program, which was supported by the Federal Open Market Committee which formulated policies unanimously, is a reference to the fact that the crucial markets at the heart of the financial system have struggled for action. In developing such an unlimited package and in the creation of such expansionary emergency loan programs.

Where large and small companies suffered from economic pressure with the spread of the virus and the restriction and paralysis of shops, airplanes and hotels, and this needs a lot of financial support to continue working, whether in the form of loans or issuance of new debts in light of the instability of the economic environment and the exposure of hungry investors to the desire to obtain Corporate debt owed, as interest rates jumped, making the cost of raising funds by selling new bonds too expensive for companies.

The Fed's plan to support the corporate bond market is through two new programs created using the Federal Reserve's emergency lending powers. They should help the market operate while allowing companies to keep one of them, which is the corporate credit facilities in the primary market, which is open to investment-grade companies and will provide temporary funding for a period of four years, according to the Federal Reserve version. The Fed will create a special purpose vehicle that buys bonds and extends loans.

As the central bank worked to get rid of treasury debt and corporate bonds, and sought to issue high-risk bonds and loans to small companies, and its $ 500 billion plan specifically for lending to local governments and companies directly - under the main lending program of $ 600 billion - will come into effect by End of the current month.

The Fed program will make the Bank of England's efforts seem almost moderate (£ 200bn earmarked for quantitative easing and the £ 330bn commercial paper scheme that is restricted to investment grade firms).

As for European countries, after its early and hesitant response, the European Central Bank also introduced a smaller program for asset purchases worth 750 billion euros, and expanded the scope of lending in exchange for additional high-risk guarantees.

As for the Federal Reserve, it was forced to move more quickly amid the bickering between the Republican and Democratic parties over support plans, but the decision to choose the governments or local companies that should receive the money is not within the jurisdiction of the central bank.

The Fed launched a series of comprehensive new programs designed to support large and small companies and keep markets functioning, while mortgage markets showed signs of collapse, and companies struggled to sell debt and pressure on the entire financial system.

The Federal Reserve pledged to buy as much of the government-supported debt as possible to support the housing market and treasury bonds, and announced that it would buy corporate bonds, including the most serious investment grade debt, and the Fed throws its full weight in the face of the economic consequences of the coronary virus, This poses a serious threat with the closure of factories, the loss of people jobs and the economy stopping work, while lawmakers in Congress continue to struggle to find a financial response, making the central bank the primary line of defense, and economists estimate that growth can contract by 24% in the second quarter, It is expected to reach 30%, which would be the worst drop in a quarter in recent US economic statistics.

Finally, the truth ... The Federal Reserve pledged to buy as much government-supported debt as possible to support the housing market and treasury bonds, and that it would purchase corporate bonds, including the most serious investment grade debt, for the first time in its history. Support will be provided to small companies in the coming period, and that the dollar, despite its decline in recent years, still represents two-thirds of global reserves, which enables the United States to borrow with minimal losses.

Economic Studies Unit

Links Center for Research and Strategic Studies   LINK

Frank26 Video "Pompeo Says Immediately" 6-4-2020

KTFA:

Frank26:  6-4-20........POMPEO SAYS IMMEDIATELY

This video is in Franks opinion

Some highlights:

We told you that the CBI is ready. We also suggested that the GOI was needed to be ready so it could pass what the CBI has. Which is the Monetary Reform plan……which has been completed.

They are Article 8 and by now it’s pretty obvious. And lately the things we have been hoping for has really been coming out. In the last 4 or 5 days it’s been a meteor shower of statements from the Prime Minister Kazemi. We believe he has the same game plan that the President of the US has……

An article came out today that they would stop the currency auctions. ..Ladies and gentlemen, that was the first step that Donald Trump wanted to accomplish. By doing so….they were not going to use the American dollar anymore. .

An article came out yesterday saying they were going to pay their salaries….and this time they would be paid in dinars….not American dollars.   Why? 

Because they stopped the auctions.

Pompeo, as we told you, went over there as a representative of the US as part of what we call “The Fab 4”. (IMF, World Bank, US Treasury, and President Trump.) Today Pompeo said something that was rather powerful.  (Frank reads the article posted below)

To recover “Instantly” there is only one way…..there were many articles posted in our forum today….and they were all talking about the fact that they are going raise the value of their currency…they are going to change the exchange rate/value. These are things we have dreamed about.

To see these articles in front of us now is because the monetary reform is really progressing.

The CBI , with the Fab 4 already have the Monetary Reform set. The printing of the currency, The new rate calculated, and recalculated until they found the one they are going to use.

They are not going to float (right away) and they are going to be on par with the American dollar. Articles talk about how the dinar has to be on the same level. By decreasing the Us dollar and raising the dinar-look at what happens- 1 to 1. 

Be sure to listen to the replay for all Frank’s news.

https://www.youtube.com/watch?v=CV-hiSo7Cn0

Don961:  Warmly welcome Al-Kazemi ... Pompeo pledges financial support for Iraq to recover "instantly"

 Free – Washington   June 04, 2020

Thursday, US Secretary of State Mike Pompeo congratulated Iraqi Prime Minister Mustafa Al-Kazemi for his assumption of the new Iraqi government.

"I would like to begin by warmly welcoming Prime Minister Al-Kazemi and congratulating him on the new Iraqi government and the peaceful transfer of power on behalf of the entire coalition. We are all committed to your success in support of the permanent defeat of ISIS," Pompeo said, according to the State Department statement.

Pompeo also praised during his speech Thursday, at the ministerial meeting of the International Alliance to Combat ISIS, held in the American capital, Washington, on the peaceful transfer of power in Iraq.

"We participate in the financial burden that ensures an immediate Iraqi recovery," Pompeo added, adding that the United States pledged last year $ 100 million to the coalition's main stabilization program in the liberated areas.

The US Secretary of State expressed his aspiration to "deepen the partnership with the people and the Iraqi government, through a series of discussions, especially through the strategic dialogue between Iraq and the United States," which will begin later this month.

Pompeo added that accomplishing the victory over ISIS demonstrates the value of the alliance "and stresses the commitment of the United States to lead its allies and partners towards shared victories."

"But our battle against ISIS will continue in the foreseeable future. We cannot rest. We must continue to get rid of ISIS cells and networks and provide stability assistance to the liberated areas of Iraq and Syria," Pompeo added.

The US Secretary of State referred to the massacre perpetrated by ISIS at the Children's Hospital in Afghanistan last month, as it chose to target mothers who had given birth to lost their babies.  link

MilitiaMan:  Interesting choice of words. Fairly sure all the things in the news of late support that the USA will be glad to help out and support iraq for trillions or reasons, no burden at all. . I like the way he congratulates him again on his new government... lol ~ MM

. ""We participate in the financial burden that ensures an immediate Iraqi recovery,"...

"No More Currency Auctions" Delta, Militiaman and KTFA Members 6-4-2020

KTFA:

Samson:  After Coming Under Heavy Criticism ... The Central Bank Stops The Currency Auction

4th June, 2020

An informed source confirmed that the Central Bank of Iraq management has finally decided to stop the auction of foreign currencies after the Iraqi economy was subjected to severe setbacks due to the Corona pandemic and the drop in oil prices to record levels, and the Central Bank followed a failed monetary policy.

The source, who spoke on condition of anonymity, said to Al-Mustaqila that the central bank governor has been subjected to great pressure in the past few days by many political blocs, the media and economists because of his unjustified insistence to proceed with the foreign currency auction window despite all the losses and risks incurred by the economy Iraqi.

The data published on the website of the Central Bank indicates that the last date for which a currency auction was held was on Thursday, 21/5/2020, when more than $ 180 million was purchased with the participation of more than 30 banks at the auction.

Below is the link for the results of the foreign currency sale window https://cbi.iq/currency_auction/all

LINK

DELTA:  STOPPING AUCTION....WHERE AND WHEN DID  WE HEAR THAT?...........KTFA TEAM YOU ROCK..

LarryH:  There we go. In Black and White. Talking about Tic Tok. We have it NOW.

JJimmyJJ:  Sooo, the Central Bank has stopped the currency auction. The thing that all of us have been looking for since we first invested has finally happened--officially, in print!

Because this is so momentous, let us review what this means:

* Iraq, by international law and international sanctions, can not use their currency to make international payments unless and until they are Article 8.

* To get around this, they established the US currency auction to allow businesses to exchange dinar for dollars to pay for imports (and to get paid for exports).

* Last year, Iraq stopped allowing the US dollar to be used inside Iraq. They must conduct commerce in Iraqi dinar.

* Thus, as of now, Iraq has no way for private businesses to gain access to hard currency (US dollars) for international commerce. Iraqi's abroad have no way to send money back to family members.

* Officially, Iraq is now cut off from the international economy. 

UNLESS,

They were already Article 8 (and just hadn't publically announced it yet). Since Frank has been yelling this from the rooftops for a year, and we trust him, let's assume that Iraq has already accepted the demands of Article 8.

Assuming that is the case, why did Iraq just take this public step (after a year of privately conducting business under Article 8) that seems to effectively announce that Iraq is cut off from the world?

BECAUSE, (IMO) THEY ARE GOING TO PUBLICALLY ANNOUNCE THAT THEY ARE ARTICLE 8. 

And, once they do that, as part of Article 8 obligations (as Delta has told us many times), they can't leave their currency at a program rate. They have to play by the rules at that point.

This, IMO, is the smoking gun of all smoking guns. Everything is now over but the shouting.

Will:  Thank you for this break down.  This is a doozy.  Let's see what the brokers start doing.  They'd be crazy to continue selling at a program rate if this is about to flip.

MilitiaMan:  By George I think you have it.. lol  ~ MM 

Now add in the meeting with Alak and the President on financial ongoing's. Then think about the upcoming meetings to vote on Cabinet, then add in the ISX is "" scheduled to open again on Sunday., then there is the SFA for the 10th - 11th. All the talk about the borders, taxes & tarrifs, fees all being electronic, the contracts adjusting for shipping costs by 07/01/2020 need to be in place by then. Those things need an international rate and pronto!! The convergence is astonishing! imo .. ~ MM

—————-

The media office of the Presidency of the Republic, in a statement received by "Gilgamesh Press", said that "Barham Salih received at the Palace of Baghdad, the Governor of the Central Bank of Iraq, Ali Mohsen Ismail al-Alaq

"The President of the Republic stressed "the importance of following rational financial policies that would achieve the supreme national interest and assist Iraq in overcoming the current crisis and achieving economic stability for citizens" LINK

The President of the Republic emphasizes adopting a balanced monetary policy and working to strengthen the financial situation

JJimmyJJ:  Amen, brother. The difference between today and the preceding years is astounding. Before, you'd follow a juicy piece of evidence, but then it would just fade away--nothing would happen with it. Now, those juicy pieces are intertwined with more pieces of evidence, which reinforce still more pieces of intel.  If you think of those strands of evidence like blasting cord in a building to be imploded, whereas before all those cords were laying by themselves, now they're all interconnected, and they're all attached to the detonator.

MilitiaMan:  Yes Sir, AMEN... There is no stopping this now from the looks of it. All has been coming together and shows that all the years of work, now are aligned and ready to go international.. They have published time lines for contractual issues, that will have to be adhered to. I am smiling!!

Warmly welcome Al-Kazemi ... Pompeo pledges financial support for Iraq to recover "instantly" link

MilitiaMan:  Interesting choice of words. Fairly sure all the things in the news of late support that the USA will be glad to help out and support iraq for trillions or reasons, no burden at all. . I like the way he congratulates him again on his new government... lol ~ MM

DELTA:  IT'S COMING ........GREAT ARTICLE......... 

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

Don961:  With documents .. Al-Fayyad directs the crowd formations to abandon partisan work and close the headquarters inside the cities

Policy 04/06/2020 10:24 2518 Editor: ha   
Baghdad today - Baghdad

The head of the Popular Mobilization Authority, Faleh al-Fayyad, issued generals to all cooperatives, directorates, and formations, including 10 paragraphs, the most prominent of which are the closure of brigade headquarters and cohorts within cities and the abandonment of partisan work.

According to the documents obtained by (Baghdad Today), the cousins ​​include the decision to commit to dismantling any political and non-political ties to the formations of the commission, and to give up all the names that the PMF had previously worked in its battles against ISIS.  LINK  

MilitiaMan:  Looks like it is a STAND DOWN now message!! WOW... This is security at it's finest. The timing of this is no coincidence. Even within moments effectively ago. Pompeo is telling Iraq that we will support you instantly.. Then this? Nice! Perfect timing before the SFA meeting.. WOW~ ~MM 

DELTA: FROM IRAQI TV...."Trends towards changing the policy of the dollar and the exchange rate"

DELTA:  GREAT JOB DON.........I DID REPORT TO YOU FAMILY LAST WEEK THAT CBI IS COMING OUT WITH NEW RATE....WE ARE FASTER THAN ARTICLE.........(smile)

Don961:  Conscious / reduce the Iraqi dinar exchange rate ... punish people

d. Hussein al-Asadi   June 3, 2020 

Iraq is going through extremely sensitive conditions, as the Iraqi economy faces a real challenge after the catastrophic failure to find alternatives to selling crude oil. I confirm here the sale of crude oil and not the oil refining industry and the petrochemical industry.

Iraq is one of the largest oil reserves in the world, as it has 147.2 billion Barrel according to explorations in 2018, or 8.5% of the balance's global reserves - - and yet he annually imports 3.3 trillion Iraqi dinars in oil products - the annual report of importing Iraq 2018, the Central Statistical Organization 2019 - and he imports energy worth 7 trillion Iraqi dinars - the 2019 budget Iraqi facts: Issue 4529 on 11/11/2019 - all of which can be produced in Iraq, as well as other resources such as agriculture, various industries, trade, tourism, etc.,

With no Sovereign Wealth Fund that provides additional imports and a portfolio to protect the future of generations, especially in times of crisis, Iraq today Asking for aid to pay the salaries of employees and retirees is that what enters the treasury is not equal to a quarter of what Iraq needs to cover salaries only.

The financial budget for the year 2019 was allocated to the salaries of retired civilians and the military (9,316,652,417,000) Iraqi dinars, and the salaries of employees equal (43,404,629,267,000) Iraqi dinars For the year 2019, the amount is (52,721,281,684,000) Iraqi dinars, which means that Iraq needs monthly (4,393,440,140,000) Iraqi dinars, and if we take into consideration that the Iraqi dinar exchange is 1,200 dinars per dollar, it means that Iraq needs monthly to (3,660,000,000) approximately one dollar, while the GDP of Iraq is approximately (1,100,000,000) dollars for the month of March and (1,200,000,000) dollars approximately for the coming months, as Iraq needs (2.5) billion dollars approximately per month to cover monthly salary expenses only, this is regardless of other needs,

And to address This catastrophic failure began to raise some voices in order to reduce the Iraqi dinar exchange rate against the US dollar in order to increase the budget number and reduce the deficit in it, and I find it necessary to clarify some of the terms, so the reader may be surprised by the ignorance of many of those who speak in this field, and perhaps they are among those in important positions of responsibility.

Floating Exchange Rate:
A floating currency is the rate of currency that has floated so that it has become fully liberalized, so the government or the central bank does not interfere in determining it directly, but it is automatically generated in the currency market through the Supply And Demand mechanism that allows By setting the exchange rate of the national currency against foreign currencies, this term corresponds to the fixed price of the currency exchange

Fixed Exchange Rate:
A specific price will be set against a major global currency (usually the US dollar, but also other major currencies such as the euro, yen, or basket of currencies), in order to maintain On the local exchange rate, the central bank buys and sells its own currency on the foreign exchange market for the currency in which it is linked.

Devaluation:
is the devaluation of the official exchange rate of this currency against an international reference currency (the US dollar or the euro, for example), so that the number of units of foreign currency that can be obtained against one unit of the national currency is low, and it is correct to talk about devaluation when it is The exchange rate is subject to the direct management of the government or the central bank, which determines this price through a government decision,

and according to the same logic, it is possible to talk about raising the price of the currency Revaluation in exchange for reducing it, and this is when the exchange rate is subject to the direct management of the government or the central bank as well, and we note that the reduction The price of the currency and its elevation are within one framework which is the fixed exchange of the currency,

but when the exchange rate is subject to the forces of supply and demand (floating the currency) and there is a decline in the value of this currency, depreciation of the currency, the decline is an automatic result of the free interaction between supply and demand in the foreign exchange market without interference Direct from the government or the central bank, according to For the same logic, we can talk about the rise in the value of the currency Appreciation versus its decline, and we note that the rise and fall of the currency price within the currency float.

Since Iraq works within the fixed fixed rate system, we can talk about reducing and raising the exchange rate of the currency, and here I do not want to differentiate between the two systems, each of them has its conditions despite the market economy and its idea that the state should not interfere in economic activities and let the market control itself

It operates a system of floating the currency and its price depends on the iron principle of supply and demand, but the actual conditions of Iraq do not allow for reasons that are too long to be explained.

Countries with a fixed exchange rate resort to reducing the currency exchange rate for economic reasons to improve their balance of trade mainly due to an increase in domestic production versus the importer. The currency reduction makes the difference between the outside and the inside and reduces the importer in front of the exporter, and this assumes that there is internal production It covers the local need and wants to preserve it and export it abroad, but in the Iraqi case, unfortunately, there is no industry, no agriculture, no internal production, it covers the local need as well as being an exporter, as Iraq has nothing to export other than Crude Oil, and I speak here As for the reality of what is there and not what I am calling for, the total imports for the year 2018 for commodities and petroleum products amounted to (37) billion dollars, equivalent to (43.8) trillion Iraqi dinars, and the total imports for the year 2018 for the non-oil commodities (34.1 dollars), i.e. Equivalent (40.5) One trillion Iraqi dinars, and Iraq has no need to reduce the exchange rate, but it is sufficient for it to prevent the import of any material that can be dispensed with.

As for the real effect of the devaluation, it is the direct punishment for the Iraqi people, if we know that 6 million Iraqis receive a salary or aid from the Iraqi government and the number of individuals The Iraqi family is 5 people, we are talking about about 30 million Iraqis who live on what they receive from salaries or aid from the Iraqi government, all of these will be affected by this procedure, because inflation occurs.

Inflation in prices is due to the low purchasing power of the Iraqi dinar, so the family that could have lived in a million dinars An Iraqi after the currency devaluation has become worth 500 thousand dinars, and if she receives a number that is a million, therefore she will live in great distress due to this reduction,
and the other affected are the owners of internal debts in the local currency, which amount to about 40 trillion dinars, which represent treasury transfers and debits with banks The government and the central bank for companies, contractors, and merchants, and if they are a number, it will remain that the Iraqi government owes them to 40 trillion, but after the devaluation they will owe 20 trillion on the assumption that it has been cut in half.

As for the external debtor, it remains the same because in foreign currency the dollar or the like.

Another issue remains here is the confidence of investors and companies in the currency after the devaluation is much less because the stability of the currency is one of the factors that encourage investment and entry in projects as well as problems related to economic feasibility after the devaluation, which is the basis of the intervention of the government or the central bank in fixing the exchange rate or only for work The principle of floating currency from the beginning.

Hence, we believe that those who seek to actually depreciate the currency are punishing the Iraqi people because of the wrong policies and economic failure that brought the country to this situation, as the people in this bear the mistakes of politicians and are punished instead of them.   LINK

MilitiaMan Wednesday Afternoon "The Road Map is Before Us" 6-3-2020

KTFA:

MilitiaMan:  I bring this one in again, as it is the meat of yesterdays call effectively.

Everyone in this investment  should be smiling large at all we have seen of late especially those of us that have been in and around for over ten years running. The Road Map is before us and there are no more road blocks in the way now imo, like we had all those years.

This man Samir Al-Nassery has been around for about the same amount of time or longer. He has been pounding the pavement with his work, yet, all these years have passed and were on deaf ears. So, he wrote a letter to the new PM Mr. Mustafa Al-Kazemi.

The new sheriff in town who knows the roads of Iraq well, not to mention those travelers that had nothing good for the country but to steal the country blind and drive off with all their spoils. That may very well be changed in the not to distant future. imo 

Samir Al-Nassery *

Mr. Prime Minister of Iraq, 
Mr. Mustafa Al-Kazemi, the esteemed, a
tribute of appreciation and respect

In the beginning, I extend my congratulations and congratulations to you on your assumption of the first governmental executive leadership responsibility after obtaining the people's trust in the House of Representatives. 

I would like to inform you that I am a specialist in economic and banking affairs, and I have previously sent several letters and literature to the former heads of cabinet looking at economic and banking reform, but unfortunately they were not read and interacted with them. I must prove here that the first official in the Iraqi government who cared and discussed with me my vision of reform and supported me and motivated me to continue to give for economic reform is Mr. Central Bank Governor Ali Mohsen al-Alaq.

Based on your bold decisions at the beginning of your career. We found it necessary for us economists and finance to support you in drawing the road map for the new government in the economic field. Therefore, I hope that you will study urgent and immediate proposals that can be implemented quickly and strategic solutions that need a period of time exceeding one year, as follows:\

Prompt and immediate treatments:

First - Preparing an emergency budget based on expected revenues from marketed oil for the year 2020, at the minimum price forecast. A monthly balance is approved, and the disbursement is made according to the established priorities.

Second: Reducing government expenditures by 50% for the three presidencies, the House of Representatives, independent bodies, special grades, and special pension salaries, and upwards from the rank of general manager, which includes those who previously worked in these locations since 2003. And excluding the salaries of employees, retirees and social welfare from the reduction.

Third - Securing the funds for dealing with the Corona pandemic to the Ministry of Health.
Fourth ‐ Securing the amounts allocated to the reform decisions that the resigned government committed to implement the demands of the demonstrators.

Fifthly, coordination between the financial and monetary policies to maintain the stability of the exchange rate and maintain the standard adequacy of the foreign monetary reserves of the Central Bank and to determine the rates of internal borrowing and not to go for external borrowing.

Sixth: To stimulate and encourage the private sector and its involvement in the management of the economic process and its involvement in economic decision-making.

Seventh, stopping the import of semi-essential and luxury items, and restricting the import of ration card materials, medicine, and medical supplies, while increasing the food basket for the Iraqi family.
Eighth: Establishing the National Emergency Fund.

Ninth: Exclusion of cadres, economic and health career experiences, and higher education from their referral retirement law implemented as of 1/1/2020. And fixing the special grades who had a fundamental role in overcoming the 
economic and financial crisis that Iraq experienced in 2014-2017.

Strategic economic treatments:

First, there is a need for a systematic movement to map a road map for economic reform by Iraqi elites and economic, financial and banking efficiencies and for economic mobility to be based on several important economic pillars that adopt a new methodology for managing the economy and achieving the central goal of creating sustainable development, achieving diversity in resources and developing economic and human structures For the sake of proper building of the national economy and building the premises of the transition to a social market economy.

Secondly, drawing a realistic and ambitious road map that depends mainly on managing and distributing public money in a transparent and fair manner, provided that the beneficiaries are the people’s results and outputs, and the citizen feels that his national economy, resources and goods are dedicated to ensuring decent living as mentioned in the articles of the permanent Iraqi constitution.

Third, the formation of the Supreme Council for Economic Reform to be enacted by a law binding on the ministries to implement its decisions, and it has the power to monitor, monitor, and evaluate, and to be chaired and headed by an elite group of government experts and the private sector. Its first task is to develop policies and mechanisms to diversify the sources of financing the public budget and not to rely on oil only.

Fourth ‐ Moving to the central administration of the economy so that the principle of (centralized planning and decentralization of implementation) is implemented, and this means that the Supreme Council for Economic Reform takes charge of drawing plans and policies centrally and distributes their implementation to specialized councils for reconstruction and investment and the implementation of development projects in the economic and human sphere These councils are: -
* Council Private Sector 
* Construction Council  
* Small and Medium Enterprises Development Authority  
* Public Service 
Council * Local Product Support and Protection Council.

 Fifthly: Creating and creating the investment climate for local and foreign investors, motivating and encouraging them, and ensuring their contractual rights to attract their capital and protect them from the pressure of spoilers.

Sixth: Providing soft loans to finance small, medium and large projects and establishing a legal and institutional system for managing, developing and developing them, as well as issuing and amending the laws of the legal environment to regulate the economic process. This means issuing new laws instead of laws issued in the year 2004 because of the changes that occurred in the national economy during 17 Public .

Seventh, activating investment in the agricultural, industrial, energy, tourism, services and housing sectors, as well as working to reform, develop and develop the banking sector through monetary policy applications and regulating the relationship and restrictions that govern financial and monetary policies, as well as a serious approach to reforming the tax, financial and customs system. And address cases of failure to achieve the required growth rates in national income and exceed the rise in unemployment and poverty rates.

Eighth ‐ Supporting, developing and motivating the private sector and benefiting from its capabilities, capabilities, capital and investments in building the national economy and involving it in managing the economy.

IX ‐ Developing a new methodology to overcome the challenges of instability in the financial system and the monetary system, and this means developing balanced and coordinated plans to overcome the challenges of monetary policy and the challenges of the deficit in non-oil revenue and the deficit in the balance of payments.

Tenth - rebuilt a new structure for the government apparatus in line with the assertion of centralization in planning and decentralization of implementation, including the adoption of a strict and disciplined market economy system as it is currently practiced in China, according to Iraqi doctrine and experience, especially in economic construction, that depends on the material, natural, economic, and human capabilities of Iraq.

Eleven ‐ laying the proper basis for the transition to the health system in Iraq in terms of the number of hospitals, the number of beds, the number of doctors and those with health professions, the manufacture of medicines and medical supplies locally, and the development of expertise and attracting Iraqi competencies abroad.

Twelve راع Accelerate the implementation and coordination of the e-government program with the electronic payment system.

* Economic and banking consultant at the Iraqi Private Banking Association

Sameer_alnosery @ yahoo .com

MilitiaMan:  The focus now is for the PM to listen and allow the road map to be implemented with urgency. The transition to a market economy is under way as noted by the actions of late globally. Countries around the world have been showing up to do business in the natural resource arena.

The natural resources of Iraq will be used as assets for themselves and they'll be used to provide materials for reconstruction of the country while creating jobs and opportunities for investors. 

They have things in place as we see today that Maritime Shipping Fleet has their SOC Certificate for International Shipping to all countries of the world. That will require contractual rights to be protected. All of these will be needed to motivate the private sector which a social market economy is all about.

We have a couple things that are coming together in close proximity.

They are the ISX reopening this weekend and then next week we have the SFA agreement slated for 06/10 - 06/11. Fascinating thing is imo they both may require similar issues to be resolved before they are open and or over with.  The ISX if international would require a rate change.

The third SFA agreement is about to get under way and it is not only about security but about political and economic issues too. Not below the readiness of the USA Ambassador to support Iraq especially in the economic side of things. 

The new PM has the USA support an there is an additional video out the other day on the matter with Ambassador Toller openly addressing his colleagues in Iraq when questioned on the matter. So by that we can see the economic side of things are on the table.

The USA was said to be going to have the meeting mid month. Then they moved it up.. Why? They must have thing ready to go and have come to at least a level that would make for a quicker rather than later approach. The word especially shows urgency and need.. imo.. 

So that said, my view is there is very good supporting evidence that with these two items in the short term coming up suggest to me that they have a plan hammered out already and or at least enough to warrant the speed up to the SFA time frame to meet.

Lets not forget that the IMF and WORLD Bank who will facilitate many things within and for Iraq have openly stated that if ever there was a time for the IMF to bring other currencies into the SDR basket, it would be now.

Well, until Iraq is international they will not ever see that happening.

The reason that I believe this time is so important is that the IMF and World Bank told us the reason why they would bring other currencies into the basket. That is because it would heal or help fix the global financial system.

There words effectively not mine. So by that the RI of the IQD could fit the mold once fully international and announced to be Article 8 by the IMF.

So if anyone needs to step away, do so, but know you are in what I see as to be a very good place be in... imo ~ MM

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

The United States and the government of Iraq have negotiated two historic agreements: a Strategic Framework Agreement (SFA) that covers our overall political, economic, and security relationship with Iraq, and a Security Agreement – otherwise known as the Status of Forces Agreement (SOFA) – that implements our security relationship. 

INA - Baghdad

Prime Minister Mustafa Al-Kadhemi met the US Ambassador to Iraq Matthew Toller on Saturday and discussed mutual files.

During the meeting Al-Kadhemi made it clear that Iraq will not be an arena for settling scores.

The statement included, "Al-Kadhemi stressed the necessity of cooperation and coordination between the two countries in the economic and security fields, countering terrorism, preparing for strategic dialogue between the two, and working to preserve security and stability in the region and keep it away from risks,"

For his part, Toller congratulated Al-Kadhemi on the occasion of his government's confidence grant by  the House of Representatives," stressing "his country's readiness to support Iraq in all fields, especially the economic side and confront the Corona pandemic,"

Don91:  Member of Parliamentary Finance reveals an option that Iraq can use to secure salaries throughout 2020

Economie 06/20/2020 12:47 731 Editor: Zs   
Baghdad Today - Special

Member of Parliamentary Finance Committee MP Jamal Cougar revealed, on Tuesday (2 June 2020), the possibility of withdrawing $ 11 billion from the reserves of the Central Bank of Iraq to cover salaries.
Cougar said in an interview with (Baghdad today), "The global rating agency classified the reserves of the Central Bank of Iraq from average to good." 

And he added, "The agency pointed to the state's ability to withdraw more than $ 11 billion of its financial reserves without affecting the exchange rate of the national currency."
Cougar added, "The financial reserve and borrowing from banks can secure the salaries of Iraqi state employees, and we pass this year without deductions or compulsory saving of salaries."

A member of the Finance Committee in the House of Representatives, Naji Al-Saeedi, announced on (30 May 2020), the possibility of paying the salaries of employees in dollars and not in the Iraqi currency, while he warned against stopping the currency auction held by the Central Bank of Iraq.

Al-Saeedi said in an interview with (Baghdad Today), that "paying the salaries of state employees in dollars according to what some claim is considered a burning and destruction of the Iraqi currency that we are working to strengthen and not weakening it with such a step."

He added that "this step cannot be taken because it will destroy the Iraqi economy."

Al-Saeedi pointed out that "stopping the currency auction on the pretext of maintaining foreign exchange is an incorrect step because Iraqi exports are dependent on this auction, which is the best solution at the present time."   LINK  

MilitiaMan:  There you go.. I'll go with the PM on this one. The member of Parliament that talks this way may be in for a phone call.. lol If not a personal meet and greet with handcuffs.. lol imo ~ MM

Member of Parliament Finance: Al-Kazemi has the authority to restrict the work of the currency auction and to hold accountable the negligent... 

Frank26 and KTFA Monday Night CC and more......6-1-2020

KTFA:

Frank26:  TONIGHT IS OUR IQD UPDATE CC WITH SPECIAL GUESTS – DELTA AND MM

I WILL DO AN INTRO TO THE CC ON YOUTUBE JUST BEFORE THEY START THE CONFERENCE CALL. I WILL BE RECORDING THE ENTIRE CALL ON YOUTUBE THIS EVENING.

PLAYBACK : 605.313.5163    PIN: 156996#

Frank26:  6-1-20.....IRAQI TELEVISION TALKS

This video is in Franks Opinion……

https://www.youtube.com/watch?v=i1HtEHSGgy0

Samson:  Legal expert: Iraq has the right to recover smuggled money outside the country

1st June, 2020

Legal expert, Ali Al-Tamimi, confirmed today, Monday,  that  Iraq has the right to recover smuggled money outside the country

Al-Tamimi said in a statement received by "Gilgamesh Press", that the "International Anti-Corruption Agreement of 2005 signed by Iraq 2007 allows Iraq to request the United Nations to recover the smuggled money as money laundering and corruption is financial

He added that "according to Article 50 of the Charter of the United Nations, states that fight terrorist organizations  under Chapter Seven of the Charter of the United Nations may request economic assistance from the United Nations, and it  is known that ISIS was placed under Chapter VII under UN Security Council Resolution 2170 of 2014

He continued, "Various countries have announced their willingness to provide economic assistance to Iraq, including Britain, so Iraq can request assistance from the international community, the United Nations, to rebuild liberated cities,  face the consequences of the war against terrorism, according to the foregoing, and recover the smuggled money estimated at $ 500 billion

He noted that "according to Article 27 of the 2008 Iraqi-American Strategic Agreement, Iraq can request economic assistance from America, as this article required

He pointed out that "the current situation and the lack of health facilities to face the Corona pandemic and the decline in oil prices,  Iraq had to move in this direction  LINK

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

Don91:  BAGHDAD DIGS IN, SAYS NO FURTHER TRANSFERS TO ERBIL UNTIL BUDGET DEAL COMPLETE

9 Hours ago

SULAIMANI — The federal Ministry of Finance said on Sunday (May 31) that it will not release any additional money to the Kurdistan Region until Baghdad and Erbil fully resolve their budget dispute.

The ministry said in a statement that it is committed to following the law and official procedures for spending money, stressing that a recent disbursement of 400 billion Iraqi dinars ($335.3 million) to the Kurdistan Regional Government (KRG) was specifically to pay the April salaries of public sector employees.

It reiterated that it had transferred the funds under the terms of an interim agreement outlined in letters exchanged between the two capitals, which promised that they would hold intensive meetings in June to finalize a comprehensive agreement within thirty days.

Under the terms of the 2019 Federal Budget Law, Baghdad is expected to send 12.67 percent of the entire budget to the Kurdistan Region, in return for 250,000 barrels of crude oil per day for export.

However, the KRG abrogated the agreement immediately, never sending any oil to Baghdad.

Nevertheless, the federal government continued to send funding to pay for public sector salaries, as it was required to under the budget law.

In April, after tolerating the KRG’s failure to follow the law for fifteen months, it froze all budget transfers.

Negotiating teams began meeting at that point, but so far have been unable to reach an agreement.

Historically low oil prices have exacerbated the dispute by putting both governments under increased financial pressure, given their reliance on oil exports.

(NRT Digital Media)     link

Samson:  Trump's adviser : Washington will cut Iraq funding in one case

1st June, 2020
The American professor and member of the advisory board of US President Donald Trump, Gabriel Soma, confirmed on Monday that the United States does not want to remove its forces from Iraqi lands, while noting that Washington will stop its financial support for Iraq if this happens.

"The United States of America does not want to be a confirmation by the Iraqi government to remove American bases at the present time," adviser Gabriel Souma told Shafaq News.

He added, "Removing the forces from the Iraqi territories will cause inconvenience to the United States that would make Washington suspend its financial support for Iraq."

There are still about 5,000 US soldiers in Iraq, most of them in an advisory capacity, as part of a broader international coalition that has been formed to help Iraq counter and defeat ISIS fighters.

Washington accuses armed groups backed by Iran of carrying out missile attacks and bombing regularly for bases hosting American forces and the area surrounding the American embassy in Baghdad. LINK

MilitiaMan and KTFA Members 6-1-2020 "The Pressure is on"

KTFA:

Samson:  Source: Political movement to choose a foreign minister before the strategic dialogue with Washington

31st May 2020

 A representative source involved in the political bloc dialogues revealed that Prime Minister Mustafa Al-Kazemi wants to complete the vacant ministries as soon as possible, indicating that the delay is due to deep differences between the political blocs

The source indicated to Arab media that the foreign and oil ministries receive the most attention in the dialogues, due to the existence of two urgent requirements, namely, the dialogue with Washington, which should be led by a foreign minister, as well as the need for the oil minister to manage the oil export file that requires contacts with an organization. OPEC

He pointed out that there is a desire on the part of most of the interlocutors that the Foreign Ministry file should be resolved in an appropriate period before the start of the dialogues with America, so that the new minister has enough time to see the files that will be raised in the dialogues

The same source pointed out that there is a preliminary approval to grant the Ministry of Foreign Affairs to the "Kurdistan Democratic Party" led by Masoud Barzani, without saying: "However, a dispute is taking place regarding the candidate, as Barzani's party insists on offering the Minister of Finance in the previous government, Fouad Hussein, to the ministerial portfolio, which is An order opposed by other powers, as a matter of refusing to nominate any former minister to obtain a ministry in the Al-Kazemi booth

 It is noteworthy that a government decision was issued on the twelfth of this month that Al-Kazemi takes over the acting Foreign Ministry, until a new minister is chosen    LINK

MilitiaMan:  There you go.. The pressure is on and and big time. The 10th is not far off. imo They need time for the minister to see the files that they will discuss at the SFA meeting.. More good stuff for us.. imo.. ~ MM

Don961:  Parliamentarians and professionals propose solutions to overcome the financial crisis

Saturday 30 May 2020

Baghdad / Hoda Al-Azzawi

Although there is no government proposal to reduce the salaries and allocations of employees and retirees, a number of deputies and specialists have confirmed that this step, if implemented, will pose a threat to the stable situation of the government at the present time, especially as it has immediate options during which the salaries of employees for the months of June and July can be secured, Among these options are internal borrowing, as well as controlling revenue from border crossings, and calling on telecom companies, as well as the Kurdistan region, for their debts.

The decision of the Parliamentary Finance Committee, Dr. Ahmed Al-Saffar asserted in an exclusive interview with Al-Sabah: that “prejudice to the employees’ salaries in light of the circumstances that Iraq is going through today in the face of Corona and the economic recession is very dangerous to government stability, especially since this crisis will not exceed more than two months, Oil prices are on the rise and the global economy is beginning to regain its vitality again.

"He added," Borrowing from the central bank's reserves for two months of quick solutions that can be compensated and returned easily and at low interest being short-term ", pointing out that" internal borrowing is better than external borrowing, which depends On very large terms and benefits, the government may be exhausted at a later date. "

Al-Saffar notes that "the government should exclude unnecessary expenditures related to large allocations and other matters related to petty cash and protections, which also constitute a waste of public money," noting that "the state has from 20 to 30 items of revenue that do not enter the budget due to corruption starting with border crossings and customs And the state’s real estate, so the financial system must be re-established, move away from monetary policies, deal with cache, and rely on the electronic automation of payment, in addition to resorting to the biometer until the state gets rid of the burden of multiple salaries, and we need to review salaries and put a new ladder for them. In order that the state would not be exposed to more crises,

Al-Saffar stressed "the restructuring of the financial system for public revenues, as well as the disposal of the rentier system that relies on unstable oil revenues and dependence on diversification of resources such as agriculture, industry and tourism, and that Iraq is an importer."

Real-time proposals

In the absence of acceptance by the legislature of prejudice to the salaries of employees; Member of the Parliamentary Investment and Economic Committee, Dr. Nada Shaker Jawdat, proposes to monitor and prevent the currency auction in the Central Bank, which the MP counted during her talk to Al-Sabah as a "smuggling of hard currency outside Iraq, as well as reducing the salaries of the three presidencies to overcome the crisis."

Jawdat calls the Prime Minister, "to immediately freeze the Rafha law, to issue a law to that effect, and to transfer money to the employees sector to confront the crisis instead of deducting their salaries that are a right of their rights, to adopt the electronic system of border ports and ports, whose resources are estimated at the amount of oil revenues that can feed salaries instead of Borrowing, because Iraq does not need a heavy financial and political burden for it to borrow. "

Real risks

And economist Dr. Faleh Al-Zubaidi said in an exclusive interview with Al-Sabah: “There are many border outlets that are not affiliated with the state and that most of its resources go into the pockets of the corrupt.” He stresses that, according to specialists, Iraq imports $ 40 billion annually that the state can impose on it. Taxes and customs duties and provide revenues, even if they are at 10 percent.

Al-Zubaidi states, "The state at this time must be firm in recovering debts from communication companies (Asia, Zain and Korek), especially since there is favoritism and a delay in paying the debts, just as the state must ask the Kurdistan region for debts that have not been recovered from it, especially since the region's sales For oil exceeds 700 thousand, and the share of Iraq is 250 thousand. "

Al-Zubaidi asserts that "Iraq is already going through a financial hardship as a result of the decline in oil revenues, so the state can seek the assistance of the foreign reserves of the Iraqi Central Bank, but it has a great risk, especially as the central bank uses these reserves to control the exchange rate of the dollar against the Iraqi dinar, and lack of control will increase From inflation rates and high prices,
as there is another way through issuing a new cash, i.e. currency printing,

which the government can resort to, except that it has risks and also leads to inflation and affects significantly the owners of fixed and limited income, so it also constitutes a risk,except that the effects of borrowing The interior is less dangerous than foreign borrowing,

such as borrowing from the World Bank fund or from countries that will curtail the Iraqi economy because of the conditions that follow the political position on which the donor country depends. He added, "The borrowing money from foreign countries must go to investment, not for consumption, so that we can pay those sums from investment projects, but that these funds go to consumer sectors, Iraq will remain reimbursed from the oil revenue sold instead of using it to benefit the country."

  Law and withholding

From a legal point of view, the legal expert, Tariq Harb, confirmed in a special statement to Al-Sabah that “the salaries law has been in effect since 2008 and it cannot be deducted except by issuing a law. In disposing. Noting that "deduction of salaries does not constitute one-fifth of the allocations that the general directors of the Council of Ministers and others take, so we demand the deduction or reduction of those allocations for justice."   LINK

 MilitiaMan:  In the end they show they may print a new currency.. Well, interestingly enough the CBI shows they have spent about 200+ million for already newly printed money.. Internal borrowing comes when they raise the rate to be allowed into the secondary markets. The 2019 budget they keep talking about has the 2019 FML amendment in it that has yet to be exposed in the 2020 yet.. The fact they are freshly talking about it is very very bullish, that they are about to expose the rate.. Like we just talked about. SA wants to interlink banks with Iraq.. They have been waiting in the 2019 FMLA just as we are and the world imo for that matter.. imo ~ MM

Don961:  The government's approach to borrowing from the cash reserve is rejected

05/30/2020 08:52:51 PM  Baghdad / extent

Mustafa Al-Kazemi’s government is moving towards borrowing from the central bank’s reserves to secure the employees ’salaries until the end of the current year, while deputies and economists oppose this approach. The Prime Minister and his team were forced to use the cash reserves due to financial constraints and lack of liquidity due to the deterioration of oil prices in global markets on the one hand and the outbreak of the Corona epidemic on the other hand.

And Mohammed Sahib Daraji, the independent deputy for (Al-Mada), talks that "the government cannot withdraw from the currency reserves to fill the budget deficit except with the approval of the Iraqi Central Bank, which is an independent entity" noting that "the Prime Minister has no
solution but to resort to the central bank reserves to bypass The economic crisis. " The government is studying several options to provide and secure the salaries of employees, retirees, and social welfare for the months of June and July, including the reduction of salaries of the highest levels and internal and external borrowing, and the House of Representatives is awaiting the arrival of these decisions in order to discuss and review them. Darraji believes that "the borrowing that the government will offer during the coming period is an unsuccessful solution

," suggesting "to gradually change the dinar exchange rate and stop the currency auction with a series of measures to prevent inflation." 

He continued: "

The deputy from Baghdad governorate asserts that "the federal budget will be limited to monthly accounts to pay the salaries that will be insured until the end of the current year." 

In his speech at the summit meeting on financing sustainable development to confront the Corona pandemic, President of the Republic Barham Saleh emphasized that our budget imports have decreased by more than 70% compared to the levels before the current crisis, which compels us to take emergency measures to cover basic expenses.

"We may need, as an inevitable consequence, to rationing our spending, but even so we may face the possibility of a large budget deficit this year, which will necessitate financing by drawing on reserves and increasing debt. In general, our economy is expected to shrink by about 10% during 2020, with Prospect for recovery in 2021. " "We cannot hope for success without the cooperation of the international community, including international financial institutions and partners," he said, noting that "the financial and liquidity crises we face make it difficult to achieve our core financing and our debt obligations."

He continued, "We hope that the international community will support these efforts, including helping us with economic restructuring and supporting us in achieving our investment budget, which are important efforts to build infrastructure, maintain basic services and create jobs," noting that "according to World Bank estimates, the number of Iraqis living below the poverty line range from less than 20% at the end of 2019 to about 40%.

For his part, economist Majid Al-Suri explains that "from a legal standpoint, it is not permissible to use the central bank reserves to cover budget expenditures directly," without realizing

"but it is possible to intervene by the central bank indirectly through the secondary market of government bonds, unless the government issues borrowing bonds . The central bank cannot use the reserve. "

The photo shows in a statement to Al-Mada that "the central bank reserves are not used in any way to cover the operating expenses of the budget," noting that "the central bank can finance foreign trade (by providing the dollar to traders) in order to meet the needs of the people." In the month of March, the Parliamentary Finance Committee decision, Ahmed Al-Saffar, revealed in a press statement that "the central bank reserves reached $ 87 billion, and it does not include cash and foreign currency only, but it includes gold bars." On the interest that is taken from the loans granted by the bank to the government, banks and state institutions. "

The economist adds that "one of the solutions that the government is supposed to follow is to reduce large salaries (what exceeded a million) as allocations and concessions to a large degree." ".

He explains that "the size of salaries (nominal and allocations) is estimated at 42 trillion Iraqi dinars, and therefore a 50% reduction in allocations will provide us with approximately 14 trillion dinars annually, or more than a trillion dinars per month." Government. "

In a related context, the Prime Minister directed, in a brief statement, to make the necessary reforms in accordance with the principle of achieving social justice, by addressing double salaries, the pensions of detainees in Rafha, and a group of residents outside Iraq who are paid other salaries.  LINK

MilitiaMan:  To be able to get the money from borders, taxes, tariffs the new elecronic system needs to be in place and transparent.  It believe that is in place and ready to go. An addition to that for offsetting the risk from oil shocks is they need to have an internationally excepted currency. They need that to get into secondary markets to sell bonds, not to mention their stock exchange will need it as well.. So by the above they know full well what hey need to do and are even telling us they are going to do exactly that. imho.. ~ Very very very good times indeed.. imo ! They stop the auctions the way we think they will? Game over.. imo.. lol Looks like it about over regardless.. lol

Don961:  The government is preparing to issue a new reform package mid this week

05/31/2020 09:57:39 PM
Baghdad / extent

The Parliamentary Economy and Investment Committee expected the cabinet to issue a new reform package next Tuesday, stressing that the government will freeze Rafha's salaries after the Reform Committee decided to address double salaries and pensions for those covered. 

Nada Shaker Jawdat, a member of the Parliamentary Committee on Economy and Investment, said in a statement to Al-Mada that "everyone should wait for the decisions of the government financial reform committee to address double salaries and reduce the salaries of high grades and the detainees of Rafha before judging them."

Prime Minister Mustafa Al-Kazemi directed yesterday, during his presidency of the periodic meeting of the Financial Reform Committee, to address the double salaries and pensions of the detainees of Rafha, and demanded that a number of measures be taken to address them, most notably the reduction of salaries of the highest levels in state institutions.

Jawdat continues that her committee "made several proposals to overcome the current financial crisis by controlling border ports and ports that generate huge funds, and obliging mobile phone companies to pay the financial dues that they paid", pointing out that "canceling these salaries requires the legislation of some laws in Parliament."

And confirms that "the government can freeze the implementation of these laws until they are amended and legislated in proportion to what the government wants," expecting that "the cabinet session will have new decisions to fix the deteriorating financial situation."

In turn, Rahim Darraji, the former lawmaker, said in a statement to (to the extent) that "the financial reform committee formed by Prime Minister Mustafa Al-Kazimi needs exceptional decisions to deal with the operations of wasting public money and eliminating outrageous salary cases of so-called Rafha salaries." Darraji calls for "reviewing the Rafha law, which the House of Representatives voted in 2013," stressing that "all officials and politicians have included the names of their relatives in the lists included in Rafha's salaries, and they are not present in the Rafha camp."

The Rafha privileges are the salaries allocated to opponents who took refuge in Saudi Arabia, and put them in a camp in the city of Rafha close to its borders with Iraq, after the "popular uprising" against Saddam Hussein's regime in 1991, whereby the law that Parliament legislated in 2013 grants residency to the camp, even for a period of one week, They and their families have fixed monthly salaries that include even those who were breastfed at the time, at a rate of one million and 200,000 dinars per month, in addition to free treatment, travel and study.

The Secretary-General of the Enough Movement adds that "the prime minister must stop these salaries while mandating the State Shura Council to review these salaries and allocate the salary to those who participated in the popular uprising and went to the Rafha camp."

The Minister of Finance, Ali Abdul Amir Allawi, had revealed on Friday (May 22, 2020) the categories covered by the reduction of salaries, while specifying the deduction mechanism and ways to reduce it or withdraw it saving.

Allawi said in a televised meeting that "the government will determine the priorities of the crushed and poor class, and that any reduction in salaries will not include employees, or retirees at lower levels who receive a salary of 500 thousand dinars or less," noting that "the rest of the other groups that consume half the budget with high salaries It will be covered and reduced. "

As for those with dual salaries, Darraji says, "The governmental financial reform committee must open the file of alien and imaginary salaries that generate monthly funds for political parties," noting that "the number of these delusional is estimated at 600,000 fake and space names in all ministries."

The member of the Parliamentary Finance Committee, Jamal Kujer, has confirmed in press statements that the Parliamentary Finance Committee does not have an accurate database of space employees in government institutions. Stressing the "need to open this file and review it to eliminate aliens."

On May 12, 2020, Judge Raheem Al-Okaili revealed the total pension payments that political prisoners and residents of Rafha camps receive.

Al-Okaili said in a post on his Facebook page, "The total number of political prisoners and detainees who are receiving pension salaries is: - (99612) ninety nine thousand six hundred and twelve."

He added, "There are (18577) political prisoners, (51854) political prisoners, and (29181) detainees of Rafhawi." Al-Aqili continued, "These categories collect a total of (one hundred and one billion, one hundred and seventy-six million dinars) per month, without counting double salaries for those who have double salaries."

Several efforts to cancel the law previously failed, as the beneficiaries of the Rafha Law accused the authorities and personalities that demanded its abolition by working with "Baathist agendas", which caused the suspension of any demands in this regard, for fear of these charges.  link

MilitiaMan:  Wednesday there is to be meetings on the Laws needed for many things that include Laws for Monetary Reforms. I suspect that since they have been talking about the 2019 FMLA and the secondary markets it will be a day to watch close. When I see secondary markets is see the reforms need the international rate to be applied to the currency to facilitate the ability for the IQD and the ISX to interlink internationally.. BTW the CEO of the ISX is talking in a video today..  Lets see over time what he had to say..

KTFA Members "Sunday News" 5-31-2020

KTFA:

Samson:  The Stock Exchange announces postponing its sessions until next week

31st May, 2020

The stock exchange announced, on Sunday, that its sessions will be postponed to next week due to the curfew in Iraq

The Stock Exchange said in a statement received by "Al-Iqtisad News", that the market will not organize "trading sessions and dealing in stocks for the period from Sunday May 31 to Thursday 4 June 2020, in compliance with the decision of the Supreme Committee for Safety and Health in Iraq to impose a total curfew in Iraq

He added that "his clients will be notified of any developments later

It is noteworthy that the Supreme Committee for Health and Safety decided, yesterday (May 30, 2020), to impose a comprehensive curfew for one week   LINK

Samson:  A deputy proposes to Al-Kazimi a solution to revive the economy and save the country from the financial crisis

31st May 2020
Representative Abdul Amir Al-Dubai presented, Sunday, a proposal to Prime Minister Mustafa Al-Kazemi to revive the economy and save the country from the financial crisis.

The Dubai, in a statement received / Mawazine News /, received a copy of it: "The distinguished Prime Minister, if he is serious in reviving the economy and rescuing him from the financial crisis that is ravaging him, must begin applying the judicial decisions issued by the Integrity Commission against the thieves of Iraqi money and smuggled outside the country."

He added, "He must also seek the assistance of the competent international bodies to recover this money."    LINK

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Don961:  The government's approach to borrowing from the cash reserve is rejected

05/30/2020 08:52:51 PM Baghdad / extent

Mustafa Al-Kazemi’s government is moving towards borrowing from the central bank’s reserves to secure the employees ’salaries until the end of the current year, while deputies and economists oppose this approach.

The Prime Minister and his team were forced to use the cash reserves due to financial constraints and lack of liquidity due to the deterioration of oil prices in global markets on the one hand and the outbreak of the Corona epidemic on the other hand.

And Mohammed Sahib Daraji, the independent deputy for (Al-Mada), talks that "the government cannot withdraw from the currency reserves to fill the budget deficit except with the approval of the Iraqi Central Bank, which is an independent entity," noting that "the Prime Minister has no solution but to resort to the central bank reserves to bypass The economic crisis.

" The government is studying several options to provide and secure the salaries of employees, retirees, and social welfare for the months of June and July, including the reduction of salaries of the highest levels and internal and external borrowing, and the House of Representatives is awaiting the arrival of these decisions in order to discuss and review them. 

Darraji believes that "the borrowing that the government will offer during the coming period is an unsuccessful solution," suggesting "to gradually change the dinar exchange rate and stop the currency auction with a series of measures to prevent inflation." He continued: "

The deputy from Baghdad governorate asserts that "the federal budget will be limited to monthly accounts to pay the salaries that will be insured until the end of the current year." In his speech at the summit meeting on financing sustainable development to confront the Corona pandemic, President of the Republic Barham Saleh emphasized that our budget imports have decreased by more than 70% compared to the levels before the current crisis, which compels us to take emergency measures to cover basic expenses.

"We may need, as an inevitable consequence, to rationing our spending, but even so we may face the possibility of a large budget deficit this year, which will necessitate financing by drawing on reserves and increasing debt. In general, our economy is expected to shrink by about 10% during 2020, with Prospect for recovery in 2021. " "We cannot hope for success without the cooperation of the international community, including international financial institutions and partners," he said, noting that "the financial and liquidity crises we face make it difficult to achieve our core financing and our debt obligations."

He continued, "We hope that the international community will support these efforts, including helping us with economic restructuring and supporting us in achieving our investment budget, which are important efforts to build infrastructure, maintain basic services and create jobs," noting that "according to World Bank estimates, the number of Iraqis living below the poverty line range from less than 20% at the end of 2019 to about 40%.

For his part, economist Majid Al-Suri explains that "from a legal standpoint, it is not permissible to use the central bank reserves to cover budget expenditures directly," without realizing "but it is possible to intervene by the central bank indirectly through the secondary market of government bonds, unless the government issues borrowing bonds The central bank cannot use the reserve. "

The photo shows in a statement to Al-Mada that "the central bank reserves are not used in any way to cover the operating expenses of the budget," noting that "the central bank can finance foreign trade (by providing the dollar to traders) in order to meet the needs of the people." In the month of March, the Parliamentary Finance Committee decision, Ahmed Al-Saffar, revealed in a press statement that "the central bank reserves reached $ 87 billion, and it does not include cash and foreign currency only, but it includes gold bars." On the interest that is taken from the loans granted by the bank to the government, banks and state institutions. "

The economist adds that "one of the solutions that the government is supposed to follow is to reduce large salaries (what exceeded a million) as allocations and concessions to a large degree." ".

He explains that "the size of salaries (nominal and allocations) is estimated at 42 trillion Iraqi dinars, and therefore a 50% reduction in allocations will provide us with approximately 14 trillion dinars annually, or more than a trillion dinars per month." Government. "

In a related context, the Prime Minister directed, in a brief statement, to make the necessary reforms in accordance with the principle of achieving social justice, by addressing double salaries, the pensions of detainees in Rafha, and a group of residents outside Iraq who are paid other salaries.   LINK

Don961:  Allawi struck a deal with the Kurds, based on a rule: Hand me over, I surrender!

Policy  ,   05/31 2020 04:32   
 Baghdad - Iraq today:

The relationship between Baghdad and Erbil remained based on the principle of prevalence, and the principle of trust from one side, and although Baghdad had been subjected for years to a real Kurdish blackmail, the Kurdish forces were building their financial interests by playing on the sectarian string once, and once on the internal contradiction in weighting, but this formula It was eroded after the fall of the fragile sectarian wall, and the Kurdish forces began facing pressure from Baghdad, forcing it to declare a position contrary to what it was showing, and that it was subject to the status quo in the days of the Abadi government, which forced it to cut off the hand of blackmail, but the matter did not last in the Abdul Mahdi government that opened Baghdad's treasures are frank in front of the Kurdish greed, and the Kurdish forces succeeded in regaining their fixed location, where they get everything from Baghdad, for nothing in the federal government .

This abnormal situation exploded the problems between Baghdad and Erbil, and held the existing crisis, and perhaps the biggest bet, and the dilemma that everyone thought was a serious obstacle to the Deputy Prime Minister, Minister of Finance Ali Abdul Amir Allawi is in reaching a formula of understanding with the Kurdish forces regarding funding, and delivery of extracted oil Of the fields in the region according to the famous oil agreement included in the 2019 federal budget, which the Kurdish government publicly disavowed .

But today, things seem to be heading for what we call "the first realistic and historical agreement" based on sufficient clarity in the relationship, and it can be counted that it will end the foggy period, freeze blackmail, and also erase "if it went well and implemented"A bad era of federal submission to the regional party, as the new agreement published today explicitly includes an obligation for the Kurdish party to pay the federal treasury dues and the delivery of non-oil financial revenues to the center, as well as the delivery of at least a quarter of a million barrels of oil per day to be issued through the Oil Marketing Company

The Iraqi government, in exchange for the region’s receiving of 400 billion dinars in employee dues per month, and as a first indication, the April payment that the Minister of Finance, Dr. Ali Abdul Amir Allawi, launched to disburse, will be the last, unless the Kurdistan government adheres to the terms of the agreement that explicitly stipulates that the region hand over This revenue to Baghdad, in exchange for paying this amount on a monthly basis, and in the event of non-commitment, Baghdad will withhold these amounts, and thus the parties to the agreement will be in a solution of the commitment of what was stated.

The importance of this agreement comes from the clear context in which the government dealt with, with its keenness on the interests of the Kurdistan people, and the necessity of delivering its financial dues, it is keen on all keenness on the federal public treasury, and it will not allow, as it seems, to any party, whatever it is to exercise extortion, or fraud , Benefiting and employing political influence .LINK

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Samson:  Newspaper: Iraqi-American negotiations will start on June 10

11:11 - 05/31/2020

The Saudi newspaper Asharq Al-Awsat reported on Sunday that the strategic dialogue between the United States of America and Iraq will start on the tenth and eleventh of next June. 

  And although Al-Kazemi is far from making hostilities and is close to making friends even with his opponents, his supporters are betting on this trait while his opponents, including those who accepted him compelled to see that the ability to satisfy enemies and friends together, is a recipe that must be viewed with caution. 

"The dialogue begins on the tenth and eleventh of the month of June (June)," the newspaper said in a report that was seen by him / the information. Military and economic.”

She added that "the precursors to this dialogue are many and are more favorable to Al-Kazemi's opponents. While the supporters of Al-Kazemi, especially the Sunnis and the Kurds, believe that the results of this dialogue will be in their favor in one way or another, especially since the opponents of Al-Kazemi do not have much pressure on him on the level of foreign policy.   LINK

Samson:  In the video .. the American ambassador clarifies the features of the upcoming strategic dialogue with Iraq

31st May 2020

The American Ambassador to Iraq, Matthew Toller, revealed the features of bilateral cooperation between the United States and Iraq, and the strategic dialogue scheduled for mid-June.

The US embassy published a video clip of Toller’s statements, in which he clarified the features of the dialogue in its political, economic, security, social, and cultural aspects.

On April 7, US Secretary of State Mike Pompeo called for a "strategic dialogue" between the United States and Iraq to discuss the future of the relationship between the two countries.

The dialogue, which will be a series of meetings between senior American and Iraqi officials, aims to put all aspects of the US-Iraqi relationship on the dialogue table.   

In English.....   VIDEO LINK     LINK 

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Samson:  Trump announces the postponement of the Group of Seven summit to September

11:04 - 05/31/2020

US President Donald Trump confirmed that he would postpone the G-7 summit until September, indicating that he would invite Russia, South Korea, Australia and India to attend.

Trump told reporters traveling with him from Florida to Washington that the Group of Seven, which was scheduled to take place in late June at Camp David, is "a group of countries very outdated" and does not represent "what is going on in the world correctly" 

The leaders of Britain, Canada, France, Germany, Japan, Italy and the United States usually participate in the meeting. Russia had been excluded from the group of what was then called the "Group of Eight" five years ago as punishment for annexing the neighboring Ukrainian Crimea region.

White House spokeswoman Alyssa Farah said the Group of Seven summit will bring together traditional allies to discuss dealing with China's future.    LINK