MilitiaMan Thursday Evening "Competition" 10-15-2020

KTFA:

Samson:  Central Bank Governor: We Have Started Implementing The Banking Sector Reform Plan

15th October, 2020

The Governor of the Central Bank of Iraq, Mustafa Ghaleb Mukhaif, confirmed that a few days ago, he presented a vision to reform the reality of the country's banking sector to strengthen the financial stability system based on competition.

The governor of the bank said in a statement reported by the newspaper "Al-Sabah" and its independent newspaper today, Thursday, that "the future vision for the work of the Central Bank of Iraq is centered in light of the economic crisis through the goals that it seeks to achieve and specified under its amended Law No. 56 of 2004, the most important of which is (guarantee) Domestic price stability and the promotion of a stable financial system based on competition), to continue achieving the strategic objectives set out in the 2016-2020 plan.

The governor explains, “In order to do so, the bank recently proposed the terms of the reform paper for the banking sector, which has been initiated now, because of its importance in developing banking services and products in the next stage, and through it, the banking sector will be supported to advance its current reality. Of the specific criteria adopted by the bank and on the basis of which the operating banks were classified, ”indicating that“ this classification will be reviewed by the end of this year, and this will continue for the following semesters of the year.”

The governor of the Central Bank says: “This step comes within the framework of enhancing confidence in the banking sector and improving the quality of services provided to the public, as well as enhancing competitiveness in the Iraqi banking sector.” Their conditions and the payment of their customers' dues, ”stressing that“ this classification will be an opportunity for these banks to prove their seriousness in achieving the requirements of reform and pay the dues of depositors and shareholders owed by those banks.”  

MilitiaMan:  The Prime Minister spoke about competition. The Finance Minister spoke about competition. Now the CBI Governor is speaking about competition. Competition is a key component of a market economy. Looks like the Central Bank of Iraq has had the ear to the IMF. The reform paper terms are initiated now.. The terms or basis has to be applied when international. That is all about what is expected next as in what is to follow.. Yep, that is implementation of the basis.. Read rate or value.. Either works for me.. lol ~ MM

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"Regarding what is being raised about the existence of an expected change in the exchange rate, the minister stressed that “changing the exchange rate of the dinar against the dollar must be done in agreement with the Central Bank and the International Monetary Fund. Presenting numbers is currently a sensitive issue. Reducing the value of the dinar will have positives and negatives and will help us financially in the first period. But we must contain its repercussions, especially inflation. "

He cautioned that "reducing the value of the dinar will create real competition and activate the industrial and agricultural sectors in Iraq."

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The Prime Minister chaired the emergency competition and its meetings were moderated by the Minister of Finance, and included representatives of the economic ministries and major state institutions concerned with the issue, including the Ministry of Finance and the Central Bank of Iraq. The cell held more than 20 meetings between May 2020 and August 2020, and received detailed statements and reports from all concerned authorities in the country as well as from representatives of the private sector. The cell has finished preparing its report, known as the “White Paper,” referring to the approach followed in it, whereby the government submits its recommendations on the main issues with the aim of crystallizing a common basis that can be agreed upon and approved,followed by the presentation of the necessary legislation and implementation procedures accordingly.

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Competition fosters economic welfare and makes markets work for development. The World Bank Group supports clients in promoting and implementing pro-competition rules in key sectors, deterring anticompetitive business practices, and minimizing distortive government interventions in markets.

https://www.worldbank.org/en/topic/competition-policy

KTFA Members "News and Veiws" Thursday PM 10-15-2020

KTFA:

Don961:  Reducing the value of the Iraqi dinar against the dollar .. Do I approach and what is the position of the Central Bank?

1,192 Economie 2020/10/15 20:48 ht Baghdad Today - Special

A member of the Parliamentary Finance Committee, Kamal Cougar, confirmed, Thursday, October 15, 2020, that the Central Bank is concerned about the government and parliamentary approach to reducing the value of the Iraqi dinar against the dollar.

Cougar said in an interview with (Baghdad Today), "There is a governmental and parliamentary approach to reduce the value of the dinar against the dollar, but this trend has not been made a final decision on it," noting that "the Central Bank has great concerns about the step of reducing the value of the Iraqi dinar in exchange for Dollar. "

He added that "the final decision on this issue will be decided in the draft federal budget law for the country for the year 2021," noting that "the details of this approach are not clear features regarding the price of the reduction."

The Financial Committee of the Iraqi Parliament commented, Thursday (July 2, 2020), on news that there are possible intentions to change the exchange rate of the dollar against the dinar within the anticipated financial reform law.

Committee reporter Ahmed Saffar said, in an interview with (Baghdad Today), that "until now we have not seen the financial reform bill, but there are information and leaks. We state that there is an intention to change the exchange rate of the dollar against the dinar, but we do not know its accuracy until the moment, as there is. Some MPs have approached this option, and there is parliamentary opposition to such an approach.

Al-Saffar indicated that "any decrease in the value of the dinar or the dollar will cause price inflation because it will reduce the purchasing power of the Iraqi dinar, and here the affected will be those with limited income from employees, contracts and renters," indicating that "within the monetary policy, this is the last solution to the crises."  link

BearCinnebar:  IMO KTFA, FOR ANYONE NEW:  remember when reading this phrase or similar ones:  " REDUCING THE VALUE OF THE IRAQI DINAR AGAINST THE DOLLAR " is coming from the country of Iraq's perspective:

Remember this helpful chart from Newshound Samson:  SAVE TO SHARE WITH OTHERS:  this should help the new people that we have just brought in Yes! 

" When we finally see our IQD listed on FOREX you won't see it as a dollar amount.  You'll see a "factor" and it requires a simple math step to get to what we want to know - how many $'s we get for each Dinar.

All FOREX listings are listed in pairs - comparing the USD to some other currency.  They will all show a different numerical factor against the USD.        USD/CAD, USD/EUR, USD/IQD

Using the program rate of 1190 you would divide $1 by 1190 = .00084 
So you will see it on FOREX listed as  USD/.84       $1 divided by .84 = $1.19
And.......
USD/0.537 = $1.86          ($1 divided by .537 = 1.86)
USD/0.400 = $2.50          ($1     "       "  .400 = 2.50)
USD/0.333 = $3.00          ($1     "       "  .333 = 3.00)
USD/0.243 = $4.11          ($1     "       "  .243 = 4.11)  

Also ....

$ RATE = WHAT YOU WILL SEE ON FOREX….WHEN IT RI’S/RV’S….. See:  the numbers reduce on Forex and read by Iraq, but the numbers as the Foreign Exchange rate increase in Dollars:

$.86   = 1.162…….. 

$1.00 = 1.000……… 

$1.17 = 0.854………. 

$1.86 = 0.537…….. 

$2.00= 0.500……… 

$2.50 – 0.400……..

$3.00 = 0.333……

$3.22 = 0.310….. 

$3.46 = 0.289…….. 

$3.50 = 0.285 ……… 

$3.86 = 0.259…….. 

$4.00 = 0.250……… 

$4.10 = 0.243…….. 

$4.40 = 0.227………

$5.00 = 0.200…….. "

Samson:  Central Bank Governor: We Have Started Implementing The Banking Sector Reform Plan

15th October, 2020

The Governor of the Central Bank of Iraq, Mustafa Ghaleb Mukhaif, confirmed that a few days ago, he presented a vision to reform the reality of the country's banking sector to strengthen the financial stability system based on competition.

The governor of the bank said in a statement reported by the newspaper "Al-Sabah" and its independent newspaper today, Thursday, that "the future vision for the work of the Central Bank of Iraq is centered in light of the economic crisis through the goals that it seeks to achieve and specified under its amended Law No. 56 of 2004, the most important of which is (guarantee) Domestic price stability and the promotion of a stable financial system based on competition), to continue achieving the strategic objectives set out in the 2016-2020 plan.

The governor explains, “In order to do so, the bank recently proposed the terms of the reform paper for the banking sector, which has been initiated now, because of its importance in developing banking services and products in the next stage, and through it, the banking sector will be supported to advance its current reality.

Of the specific criteria adopted by the bank and on the basis of which the operating banks were classified, ”indicating that“ this classification will be reviewed by the end of this year, and this will continue for the following semesters of the year.”

The governor of the Central Bank says: “This step comes within the framework of enhancing confidence in the banking sector and improving the quality of services provided to the public, as well as enhancing competitiveness in the Iraqi banking sector.”

Their conditions and the payment of their customers' dues, ”stressing that“ this classification will be an opportunity for these banks to prove their seriousness in achieving the requirements of reform and pay the dues of depositors and shareholders owed by those banks.”   LINK

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Samson:  Nouri al-Maliki is recovering from Corona

14th October, 2020

A source in the State of Law coalition stated, on Wednesday, that the head of the coalition, Nouri al-Maliki, had recovered from infection with Corona virus.

The source told Shafaq News Agency, "Al-Maliki has recovered after about four days of his injury."

On Sunday, an informed source in the Islamic Dawa Party revealed that the Secretary-General of the party, Nouri al-Maliki, was infected with the Corona virus, indicating that the health condition of al-Maliki is now stable and he is in good health.  LINK

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Samson:  Representative Finance: The government borrowing law includes debts worth 41 trillion dinars

19:05 - 10/13/2020

The Parliamentary Finance Committee confirmed, on Tuesday, that the new borrowing law prepared by the government includes debts worth 41 trillion dinars, with a monthly deficit of about 10 trillion.

A member of the Finance Committee, Ahmed Al-Saffar, told Al-Maalouma that "the Finance Committee reviewed the new borrowing law prepared by the government and prepared on the basis of financial reforms."

He added, "The law includes expenditures for current spending, investment, salaries, debts, etc. and is prepared on the basis of a mini-budget," noting that "it includes debts worth 41 trillion dinars with a monthly deficit of 10 trillion dinars."

Al-Saffar clarified that "if parliament approves the matter, its approval will be conditional on the necessity to present the financial and economic reform paper."    LINK

Samson:  Integrity: Imprisonment for a government bank manager damaged public money by nearly 600 billion dinars

11:20 - 10/13/2020

The Federal Integrity Commission announced, on Tuesday, the issuance of a judgment in absentia to imprison the former director of the Agricultural Bank, the issuance of an arrest warrant and investigation against him, and support for seizing his movable and immovable funds, attributing this to his deliberate damage to public money in an amount of about 600 billion dinars.

The investigation department of the authority said in a statement received / the information /, a copy of it, that “the convict, who was formerly the director of the Agricultural Bank, deliberately harmed public funds through the violations of the financial allocations for the agricultural initiative,” indicating that “he did not take legal measures against my managers. Branches and offices who violated the credit plan, noting that the amount spent amounted to (596,364,063,000) billion dinars.

She added, “The Criminal Court for Integrity Cases in Baghdad has reached full conviction of the convict’s negligence, after examining the evidence obtained in the case represented by the statements of the legal representatives of the Ministry of Agriculture and the Agricultural Bank who requested the complaint against him, as well as the report of the Financial Supervision and Administrative Investigation Bureau that includes his negligence. Because of the excesses of the financial allocations for the years 2011-2014, and his failure to obtain legal approvals from the competent authorities, in addition to the presumption of his escape from justice.

The circuit clarified that “the court decided in absentia to sentence the convicted person to seven years imprisonment based on the provisions of Article (340) of the Penal Code, issuing an arrest warrant and investigation against him, and confirming the seizure of his movable and immovable property, while giving the affected party the right to claim compensation before the civil courts after acquiring the judgment. The hyperbolic degree.    LINK

Delta, MilitiaMan and KTFA Members "Final Report" 10-14-2020

KTFA:

DELTA:  Finance Minister Ali Allawi expected the salary crisis to continue, while he presented a number of reasons.

"We are forced to face the problem of salaries" on a monthly basis, "Allawi said in a televised interview that he followed on the eighth day, as oil revenues are no longer sufficient and cannot cover half the value of salaries.

He added that "the amount rounded up from the previous government exceeded a trillion dinars a little, meaning that the current government did not receive only a very small amount of the previous one, and therefore the government came in the month of May and it is loaded with financial burdens, especially how to secure salaries."

He pointed out that "if borrowing exceeds certain figures, it will have negative repercussions on the economic situation of the country, especially with regard to material prices and paves the way for inflation, and it must be with a certain limit, not that the borrowing be endless."

 He stressed that "the current government requested an open ceiling for borrowing this year to pay salaries and urgent expenditures, and the House of Representatives stipulated that the internal borrowing does not exceed $ 15 billion and the external $ 5 billion, and according to the indicators, it is unrealistic because it is insufficient as the borrowed money ran out within 3 months and the crisis has returned."

And that "the salaries of employees are not the problem and it is reasonable, but the allocations that reach 400% of the value of the salary in some ministries and the allocations must be reconsidered because it is the problem and not the salaries."

The minister, Ali Allawi, said that “the employee’s productivity is very low and reaches 0% in some departments,” indicating that “there must be a return to the state from the services provided by the employee and this does not exist, and non-productive employees must also be transferred to productive projects for investment. "Their efforts and we will present a project to transfer them from another place."

He continued, “The Ministry of Finance paid the salaries of September after reviewing the financial engineering, and we are now at a crossroads. There must be financing to bridge the salary deficit and there are 3 solutions. The first is to increase imports and this is linked to the value of oil exports and it is not encouraging because it does not exceed the $ 15 billion until the end Year ”.

He added, "In return, we need financing of at least 58 trillion dinars to cover the ruling expenses. The second solution is to reduce expenditures and the third is to find a way to finance the deficit."

Regarding customs funds, the minister replied by saying that "the issue is related to imports, and it has been very less due to the Corona crisis," indicating that "there is a large part of Iraq's internal imports that are exempt from fees and what is entered through investment is also exempt, and this means that no resources are achieved for these two reasons."

He continued, "The percentage of resources that enter through customs does not exceed 15% of the value of what is imposed due to the above reasons," saying, "What we expect does not exceed the 4 billion dollars annually, and therefore customs will not be a major source of state funding."

"As for taxes, their base is very narrow, and those who pay most are the employees," he said, noting that "70% of the private sector is unorganized and cannot be collected because most projects are small and there is no culture of paying taxes."

Regarding what is being raised about the existence of an expected change in the exchange rate, the minister stressed that “changing the exchange rate of the dinar against the dollar must be done in agreement with the Central Bank and the International Monetary Fund. Presenting numbers is currently a sensitive issue. Reducing the value of the dinar will have positives and negatives and will help us financially in the first period. But we must contain its repercussions, especially inflation. "

He cautioned that "reducing the value of the dinar will create real competition and activate the industrial and agricultural sectors in Iraq."

He pointed out that "the year 2020 witnessed an ill-considered increase in the value of what is paid for salaries if it doubled to the level of half from the previous year, and rose from 40 billion dollars annually to 65 billion."

Ross:  "expected change" The whole world is expecting this change...time to deliver this baby.

"must be done in agreement with the CBI and the IMF."   Duh of course it already is a done deal.

Billuke:  BABY !!!!   This thing has taken so long...it will give birth to an adult!   lol

Safeone:  Thing thing has taken so long it will give birth to not only an adult, but a senior citizen; IMO.  I might add that senior citizen is probably on social security and wearing a mask!!!!   Imo lol

Clare:  THANKS DELTA!.......... EXCELLENT!    changing the exchange rate of the dinar against the dollar must be done in agreement with the Central Bank and the International Monetary Fund. Presenting numbers is currently a sensitive issue.   "MUST BE DONE"!!  "currently a sensitive issue." YES!! imo

MilitiaMan:  The Minster of Finance tells us that changing the value of the exchange rate is between the Central Bank and the IMF. It doesn't say Parliament.

 However, they will at some point be exposed to a rate change, whether they like it or not. Take note they say that the issue of presenting numbers or basis (rate) is sensitive.

Of course it is and very sensitive, hence, they haven't exposed it yet to Parliament.

 Not only from the 2019 FMLA and the 2020 Budget, nor the White Papers, yet. When they say "reducing the value of the Dinar", they mean the reduction of the three zeros from the exchange rate. They are not going to be devaluing the currency.

By "reducing the zeros from the exchange rate" (raise the value) allows them to go into the or a market economy where the real competition is. It will activate the industrial and agricultural sectors when doing so. imo

There main issue to be in the forefront now is that within the White Papers is a Final Report on Financial Reforms.

In that paper it appears they have to get to the main issue in the report, so they can determine and crystallize the "common basis" that can be agreed upon and approved (rate).

Well that foundation of the basis (rate) is about the value at which the currency is to be when they change it. It is that simple, imo. This is now down to the IMF and CBI putting a common basis into stone!

This supports they are at that final stage to set that gem in place. Just as the Emergency Cell states. It is the FINAL REPORT and they are now to have or have presented the necessary legislation to proceed with implementation procedures.

This is very good indeed! I suspect they have every intention now with all the work done and sorted accordingly, we are in a very good place to see the golden ring. ~ imo ~ MM 

Frank26 Video "HCL", MilitiaMan, and news Tuesday PM 10-13-2020

KTFA: 

Frank26:  I want to talk to you because I have been told to do so by WALKINGSTICK...

I would strongly advise you to come and listen tonight

I will keep it within 30 minutes ...

Frank26:  10-13-20.........HCL

This video is in Frank’s opinion

https://www.youtube.com/watch?v=oS3e8LXyxO4

Samson:  The Constitutional Amendments Committee Identifies The Most Important Controversial Issues, And Article 140 Affirms The Most Prominent Of Them

13th October, 2020

The Parliamentary Constitutional Amendments Committee identified controversial points in the constitution, most notably Article 140, which is the basic article in the relationship between Baghdad and Erbil.

Member of the committee, Representative Yonadam Kanna, said, in a statement to the official agency affiliated with it , on Tuesday, that "the points of contention in the constitution are Chapter 1, which is Article 140, as well as about the nature of the political system, whether presidential or parliamentary," pointing out that "other important points of disagreement are Related to government formation, is the largest parliamentary bloc or the winning list that forms the government.

Kanna added that "one of the points of contention is also in Chapter Two of rights and freedoms," noting that "there are 23 articles on rights and 10 articles on freedoms."

He pointed out that "the third chapter is to grant the citizen a decent living and to provide basic services, such as housing, education, health, care and others," noting that "these services are not available to the citizen despite their presence in the constitution."

He explained that "Article 140 of the articles, which is the main point of disagreement between Baghdad and Erbil, and that there will be a meeting soon between the political blocs and the political references of the Kurds and the Constitutional Amendments Committee to come up with a final formula on Article 140 in order to satisfy all parties."   LINK

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Samson:  Minister of Finance: The White Paper is a reform program for financial and economic affairs

13th October, 2020

Minister of Finance, Ali Abdul Amir Allawi, warned, on Tuesday, that Iraq is facing dangerous repercussions, while he confirmed that the White Paper will be a reform road map.

"The White Paper is a reform program for the financial and economic affairs in Iraq, and it will turn into legislation with the aim of reforming the economic and financial situation," Allawi said in a joint press conference with the Minister of Planning and government spokesman Ahmed Mulla Talal, held in Baghdad.

He added, "The situation of Iraq will be much better economically and the situation of the individual will improve if we succeed in implementing the white paper, as well as placing the liberated cities at the forefront of their concerns," noting that "one of the main axes in the white paper is to reform the situation in the provinces."

Allawi continued, "We face dangerous repercussions and the white paper is a reform road map," noting that "the border crossings are linked to the import movement and will not be as important as oil," noting that "Iraq imports materials worth $ 60 billion annually from abroad."   LINK

Samson:  The decisions of the Council of Ministers

13th October, 2020

The decisions of the Council of Ministers during today's session, which was held under the chairmanship of Prime Minister Mustafa Al-Kazemi.

The media office of the Prime Minister said in a statement that Mawazine News received a copy of, that "the Cabinet held its regular session headed by Prime Minister Mustafa Al-Kazemi, during which a number of issues and topics included in the agenda were discussed."

The statement added, "The Minister of Health and Environment, at the beginning of the session, presented a detailed report on the latest developments in the Corona pandemic in Iraq, and the government's efforts to contain the virus, reduce the rates of injuries and deaths throughout the country, and the efforts of the Ministry of Health to provide the necessary treatments and health supplies for all Hospitals, as well as continuing awareness campaigns on taking the preventive measures that must be adhered to.

He continued: "During the session, the reform white paper was discussed, where the Minister of Finance presented the final report of the emergency cell for financial reform in Iraq, which includes immediate plans to get out of the current financial crisis, and an explanation of the contents of the white paper, and its ability to achieve the advancement of the country's economy, which suffers from various problems. And it faces serious challenges, and the white paper is enough to address many of the defects that have accumulated over many years."

After discussing what was included in the agenda and what the discussions concluded about it, the Council issued the following decisions, according to the statement:

First / Approval of the White Paper for Economic and Financial Reform, taking into consideration the opinion of the Legal Department in the General Secretariat of the Council of Ministers, and the comments of the Council of Ministers.

Second / Extending the exception granted to the Ministry of Health, according to the decision of the Supreme Committee for National Health and Safety (9 of 2020), and the decision of the Council of Ministers (42 of 2020), regarding the Ministry of Health exemption from the instructions for implementing government contracts (2 of 2014) and its attached controls, and instructions for implementation The federal general budget upon its issuance, and in order to eliminate the Corona pandemic, to ensure the provision of medicines, supplies, and medical and laboratory devices without delay.

Third / Approval of the recommendation of the committee formed according to the Diwani order (34 of 2020) and the Diwani order (247 of 2020), which include:

- Authorizing the Ministry of Transport to negotiate the suspended Baghdad train project with a consortium of (Alastom-Hyundai) companies, and at the cost and period that will be determined based on the outputs of the report that will be submitted by the consultant, who will evaluate the proposal submitted by the two companies' consortium, and what will be reached through negotiations between the two sides, The issue was later presented to the Council of Ministers.

 Fourth / Approval of the following:

1 - All creditor ministries and government agencies to provide the two ministries (trade and agriculture) with lists with a CD containing the debts owed to them by farmers, to set off the peasants’ dues and those debts and transfer them from the ministries of commerce and agriculture to the creditors.
2 - All ministries and government agencies not to fulfill the principal debts owed by farmers, and to cancel the delay interest from them, for those who have debts owed by government agencies equal to or greater than the amounts, and are required to pay them in light of the payment of their dues from government institutions.
3- Peasants marketers of strategic crops (wheat, barley, rice, corn) open accounts for them at the Agricultural Bank.
4- The Ministry of Commerce and Agriculture released the amounts owed to farmers to their accounts at the Agricultural Bank.
5- The Ministry of Agriculture supplies farmers and farmers with seeds and fertilizers, provided that the Ministry of Trade pays its sums to the aforementioned ministry.”   LINK

Clare:  First / Approval of the White Paper for Economic and Financial Reform,

THANKS SAMSON!.......... EXCELLENT!!

Samson:  Iraq proposes to form a joint committee to settle financial issues with Iran

12th October, 2020

Central Bank Governor Mustafa Ghaleb Makheif proposed, on Monday, the formation of a joint committee with Iran to settle financial issues between the two countries, while indicating that he would use Tehran's experience in financing and banking.

"Fars" news agency quoted Makhaif as saying, during his meeting with his Iranian counterpart, Abdel Nasser Hemmati, who arrived in Baghdad this morning, that "Iraqi officials affirm that banking issues between the two countries will be resolved and that the problems will soon be resolved in light of the approved mechanisms," indicating that "we are trying Continuing banking cooperation with the Islamic Republic of Iran, and we will use Tehran's experience in financing and banking. "

“All our efforts are to continue cooperation between the two countries, and the existing problems in the field of financial and monetary claims by Iran will be solved,” Mukhaif added, noting that “there are some mechanisms that can be used to help enhance banking and monetary cooperation between the two countries and solve the existing problems.” "We suggested forming a joint committee in the presence of banking and financial officials from the two countries to find the necessary solution to settle financial issues between Iran and Iraq," he said.

For his part, the governor of the Central Bank of Iran said, "I hope that the banking and financial problems between the two countries will be resolved in light of the determination and will of the Iraqi authorities."

Hemmati considered relations between Iraq and Iran "very important and effective," stressing that his country "attaches great importance to developing cooperation with Baghdad."

The governor of the Central Bank of Iran arrived in Baghdad this morning, heading a delegation to meet and consult with Iraqi officials, including Prime Minister Mustafa Al-Kazemi.  LINK

MilitiaMan:  FINAL ARTICLE #280:

"The economist Ahmed Al-Salami wrote an explanation about some countries deleting zeros from their currency and the possibility of applying them in Iraq, while referring to the possibility of making the Iraqi currency strong and has global demand, in what he described as the free dinar.

"Iran will soon delete four zeros from its currency and convert it from the riyal to the new toman officially and have completed the legal series for that, and at that time it will be 100 dollars equal to 300 toman only instead of 3 million tomans or 30 million riyals," Al-Salami said in a clarification received by "Yes Iraq." .

MilitiaMan:  A common thought is from a respected Journal is:" that important beneficial effects of currency unions come through the promotion of trade." ~ MM

https://www.jstor.org/stable/2696432?seq=1

MilitiaMan:  Something to think about is that the FA #280 is talking about the Deletion of Zeros for Iran and Strengthening the IQD and then in #283 we see talk of the Reform Papers.

The common denominator here is that Iraq and Iran are in the news of recent talking about having similar objectives and that is banking measures. The timing of this is by no coincidence imo..

We see the White Papers are today issued accordingly. We wait and see the details within them. I'll bet the world is watching.. lol imo They know from all that Iraq has spoken about of late and in DC.. Game on! imo ~ MM

Governor of the Central Bank: We are determined to implement the reform plan to promote the work of the banking sector

"" Depletion of foreign currency to buy the most insignificant commodities and deplete the cash balance, instead of facilitating official and accounting transactions, packages, storage, transportation, use of versatile metal change and revolutionary digital currency through cards and gain confidence internally and externally, needs a revival, stimulation and progress in this aspect, easy projects that are waiting for their hero, below. Conceptual models for the deleted Iraqi currency, the "free dinar" zeros." LINK

KTFA Members "Tuesday News" 10-13-2020

KTFA:

Samson:  The G20 considers measures to support a rapid and sustainable economic recovery

13th October, 2020

The official Saudi Press Agency reported early Tuesday that G20 finance ministers and central bank governors will hold a virtual meeting on Wednesday under the Saudi presidency to discuss how to support a rapid and sustainable global economic recovery

The meeting will also discuss updates to the G20 action plan to support the global economy during the Coronavirus pandemic and the progress made in the G20 initiative to suspend debt service payments and propose an extension until 2021   LINK

Samson:  Fiscal Committee: The White Reform Paper Arrives in Parliament

13th October, 2020

The Parliamentary Finance Committee announced, on Tuesday, the arrival of the government's White Paper on Reform to Parliament.

The official Al-Sabah newspaper quoted the Finance Committee as saying that "the government's white paper for reform has reached the parliament."   LINK

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Samson:  The third announcement circulated by the Central Bank of Iraq to all Iraqi banks around the Arab Week for Financial Inclusion

12th October, 2020

 The third announcement circulated by the Central Bank of Iraq to all Iraqi banks around the Arab Week for Financial Inclusion.

Progress in financial inclusiveness indicators accelerated using electronic payment tools inside Iraq as it facilitates the electronic transfer of funds, which saves time and effort for everyone, and reduces the exchange of banknotes that are considered a transmission of infectious diseases and viruses..

and The Central Bank of Iraq has adopted an electronic payment strategy by cooperating with the public and private sectors to improve financial inclusiveness, which is one of the indicators of growth of the country's economy through improving and accelerating financial and economic services.

The year 2020 carried out a progressive model in the region to meet the needs of bankers by developing the Iraqi monetary policy infrastructure, led by the Central Bank of Iraq.     LINK

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StephenMac63:  Using Tehran experience in banking? Let's see, they lopped 4 zeros, under sanctions, they have no friends, banned from SWIFT, ....and iran is a consultant?  lol

Samson:  Iraqi Central: We will use Tehran's experience in finance and banking

12th October, 2020

The governor of the Central Bank of Iraq announced, on Monday, that banking issues with Iran will soon be resolved, indicating that Baghdad is seeking to use Tehran's experience in financing and banking.

In a statement received by Shafaq News Agency, the Iraqi Central Bank said that the Governor of the Central Bank of Iraq, Mustafa Ghaleb Mukhaif, received today  his Iranian counterpart, Abdel Nasser Hemmati, who is visiting Iraq with a banking and economic delegation.

The Central Iraqi statement added that the meeting, which was also attended by the Director General of the Iraqi Trade Bank (TBI) from the Iraqi side , framed cooperation in the banking sector between the two sides and ways of solutions and treatments for financial dues for the Iranian side within the limits of the frameworks for that.

For its part, Iranian media reported that the governor of the Central Bank of Iraq and his Iranian counterpart stressed the solution of banking issues between the two countries. "We are trying to continue banking cooperation with the Islamic Republic of Iran, and we will use Tehran's experience in financing and banking," Mustafa Ghaleb Mukhaif said, adding that all our efforts are to continue cooperation between the two countries and the existing problems in the field of financial and monetary claims by Iran will be solved."

The governor of the Central Bank of Iraq added that "there are some mechanisms that can be used to help enhance banking and monetary cooperation between the two countries and solve the existing problems."

For his part, the governor of the Central Bank of Iran expressed his hope that, in cooperation with his Iraqi counterpart, the complex banking issues between the two countries would be resolved. "I hope that the banking and financial problems between the two countries will be resolved in light of the determination and will of the Iraqi authorities," said Abdel Nasser Hemmati. "Relations between the Islamic Republic of Iran and Iraq are very important and effective, and Tehran attaches great importance to developing cooperation with Baghdad."

The Governor of the Central Bank of Iran arrived in Baghdad this morning at the head of a delegation to meet and consult with Iraqi officials, including Prime Minister Mustafa Al-Kazemi.  LINK

Samson:  Oil prices rise after losses due to the return of supplies

13th October, 2020

Oil prices rose on Tuesday, after suffering losses of nearly three percent in the previous session, with the resumption of supplies in Norway and the Gulf of Mexico in the United States and Libya, while the International Energy Agency expected a decrease in global energy demand by five percent this year

US West Texas Intermediate crude futures rose four cents to $ 39.47 a barrel, and Brent crude futures rose four cents as well, to $ 41.76 a barrel

Oil prices are under pressure due to fears of a return of supplies, while the increase in Covid-19 cases in the American Midwest and Europe raises concerns about the growth in fuel demand, which represents a challenge to OPEC and its allies in what is known as OPEC +

With the return of workers to drilling rigs in the Gulf of Mexico in the United States after Hurricane Delta, as well as the return of workers in Norway to the rigs after the end of the strike, all eyes are on Libya, a member of OPEC, after the status of force majeure in the El Sharara field was lifted

On Monday, Libya's total production reached 355,000 barrels per day. The field was producing 300 thousand barrels per day before the blockade that was imposed on it

OPEC + cut supplies to support prices amid the Corona pandemic and cut supplies by 7.7 million barrels per day until December. The group's market watch committee meets next Monday   LINK

KTFA Members "News and Views" Monday Afernoon 10-12-2020

KTFA:

DeepWoodz:  Just wanted a quickie sheet of today’s thread before it gets soooo long....

Parliament says no way we are raising the dollar rate against the dinar.

I don’t understand it but we have letters of guarantee from banks to the CBI.

Income tax starting in 2021.

A Dubai expo scheduled for next year. Almost one year from now.

White papers in parliament Tuesday.

International Development Bank and Union of Arab banks gettin frisky.

Comparing revenues in parliament with Kuwait’s revenues.

Cabinet secretariat  sent a draft of the borrowing law to parliament.

Cleaned up 3500 more double salaries to the tune of 461 million dinars.

Statement made that they have 4 trillion dinars available to pay salaries but still aren’t.

Sounds real good to me! Imo

Samson:  In the document ... important figures in the law on financing the fiscal deficit that reached Parliament today

10/11/2020 16:20:00

A copy of the fiscal deficit financing law that reached Parliament today, Sunday, revealed important figures.

According to a document from the draft law, the Euphrates News Agency obtained a copy of it. The federal budget revenues for the last four months of this year were estimated at 19 trillion and 719 billion and 483 million and 139 thousand dinars.

The export of crude oil was calculated - during this period - on the basis of an average price of 40.51 dollars per barrel, and an export rate of three million 332 thousand and 73 barrels, including 250 thousand barrels for the quantities of oil produced from the Kurdistan region, based on the price of 1182 dinars per dollar.

The transcript indicates that Kuwait's compensation estimates are 531 billion 584 million and 494 thousand dinars. As for the estimates of the remaining licensing contracts for foreign oil companies, 5 trillion, 6 billion and 282 million dinars.

 The Parliamentary Finance Committee announced today, Sunday, that the Council of Ministers sent a bill to bridge the fiscal deficit to Parliament, indicating that “the law stipulates that Iraq needs to borrow 41 trillion dinars for the last four months of this year.”

She explained that:  “the bill is passed by Parliament. It will enable the government to bridge the fiscal deficit by resorting to borrowing, "noting that" the bill to bridge the fiscal deficit will be a substitute for the 2020 budget."

It is reported that the Speaker of the House of Parliament Muhammad al-Halbousi said in the parliament session yesterday that" if no governmental request for legislation reaches the House of Representatives A law that strengthens the government's budget to fulfill its obligations before citizens, and a letter amending a borrowing law did not want it."

He added that "the House of Representatives returned the budget law and it was withdrawn, on the same day, to make amendments to it," pointing out that "the parliament expects the government to send to the parliament a draft law that enhances government revenues to enable it to fulfill its obligations before citizens."  LINK

DeepWoodz:  Does anyone else find it very interesting that they are using an example from Kuwait for revenues?

MilitiaMan:  What I find interesting is they speak of 4 months salaries. They haven't paid the salaries for September, yet. That is very interesting, as they told us they would. Why have they not? 

Well, imo the rate at which they get paid and in an equivalency is in need.  They had to make amendments to the budget law. By not paying the last four months, shows they have an intention to pay but, with an amended budget law for 2020. A substitutive.

I'll bet the White Papers know full well what the substitute is and they are to be out Tuesday the 13th. It enhances the government revenues to fulfill it's obligations to the citizens.

To enhance the exchange rate (mechanism) will create the environment for the Iraq country to go into the market economy where they can be competitive through secondary markets. The revenues from the borders is going to be a very important part of the financial status of the state. 

They passed and enhanced with an engineered mechanism.. Get it? Did they raise the rate (mechanism) and not tell us yet or did they just within what is in the above and below past tense data? Starting to look that way.. imo

They have the money to pay all four months without borrowing because they have raised the rate?

 Lets see what the White Papers have to say.. The citizens were shown conceptual notes, did they not on the day they said the first step of reforms began on 10/05/2020? They did..

FINAL ARTICLES show it! imo!!!  ~ MM

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Political pressure and hints to stop salaries ... Four proposals to avoid the crisis

It is noteworthy that the Minister of Finance, Ali Abdul Amir Allawi, reassured citizens through an interview with Al-Furat satellite channel on Saturday evening, about the payment of salaries for the remaining months, saying: The situation in Iraq is not in danger and that the exchange mechanism was carried out according to the financial engineering system without borrowing   LINK

MilitiaMan:  Chairman of the Board of Directors of the International Development Bank and Secretary General of the Union of Arab Banks discuss common banking issues

What is Financial Engineering?

Financial engineering is the use of mathematical techniques to solve financial problems. Financial engineering uses tools and knowledge from the fields of computer science, statistics, economics, and applied mathematics to address current financial issues as well as to devise new and innovative financial products.

Financial engineering is sometimes referred to as quantitative analysis and is used by regular commercial banks, investment banks, insurance agencies, and hedge funds.  LINK

Aaron:  I think the admittance of Iraq as a shareholder of the European Bank of Reconstruction & Development is HUGE...  They've been trying for 2 years and now all of a sudden they get admitted...   I wouldn't think they'd be admitted unless either they have become international, or there has been irrefutable proof given to the European Bank Board that an impending change is near -- (IMO of course)

I have a couple questions that I'd like to throw out there..

This weekend on Saturday there was talk from out of Iraq about the Sinjar Agreement and that it may be a "gateway" to Article 140 -- Is it just a gateway, or is it actually a package of agreements between Baghdad & Kurdistan that may include Article 140, HCL, etc..???

Lastly, a few weeks ago Frank spoke of (2) currency swaps between the US and Iraq -- The 1st at the program rate, and the 2nd at (or near) 1-to-1.  --  Has anybody heard where we are at with these..???    I will assume the 1st swap was made, has anyone heard about the 2nd swap as of yet..??

Cleitus:  October 20th is what my notes say for the second currency swap.  30-60 day duration; 250-500 billion with new rate.  From notes I took. IMO

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Samson:  Documents ... The axes of the white paper that the Council of Ministers will discuss tomorrow

10/12/2020 15:42:38

 Translation of below documents .....

White Paper The proposed period for implementation is 3 years (2021 22.) 2023 
Axis I / Achieving sustainable financial stability A- Maximizing revenues B- Declining expenditures Reforms in the Ministry of Finance and Financial Management Systems

Axis Two / Achieving total economic reforms A- Rehabilitation of the financial and banking sector B- Banks - Insurance - Stock Market C- Sectors driving the economy Agriculture - Oil and Gas to upgrade them w- The private sector and activate the private sector fund and an initiative of the Central Bank Simplifying procedures Paying dues for contractors and providing job opportunities in the private sector c - Restructuring self-financed public companies  

The restructuring of public companies financed by Dania, the losing companies are liquidated and the other companies are re-assisted and sold to some companies and are based on small projects in the area of ​​relocation of the unemployed and the enterprises are obligated to develop human development and from the national strategy of education and training

Axis Three A- Improving the Basic Infrastructure B- Electric Power (Production, Transmission and Distribution, Collection, Alternative Energy) C- Mobile Phone Communications, Network Connections D- Transport Sector, Ports, Airports, Modern Roads of Trade) C- Areas Duty Free and Industrial Cities

IV / Providing basic services A- Providing safe drinking water - Redrawing the social protection system C- The retirement system (a unified law that meets the private and public sector 0 W- Implementing the school building plan

V | Development of governance and the legal environment a- Review the implementation and amendment of the instructions for the implementation of government contracts, in terms of governance and public administration  LINK

MilitiaMan Saturday Evening "They Require the New Rate" 10-10-2020

KTFA:

Don961:  Finance Minister: We will present the white paper for reform to the cabinet next Tuesday

10/10/2020 12:48:03 PM  

Baghdad / Al-Masalla: The Minister of Finance, Ali Abdul Amir Allawi, revealed, on Saturday, October 10, 2020, the date for submitting the reform paper to the Council of Ministers and its contents.

Allawi said in a statement followed by the obelisk: "We will present the white paper for economic reform to the cabinet next Tuesday."  

He added, "The paper includes a diagnosis of the origin of economic problems and treatments that will be difficult, but there is no alternative to them." 

"We have a problem in providing salaries for the remaining months of the year without voting on the borrowing law," Allawi said, pointing out, "We will deal with increasing the interest rate on bank loans by reducing it."   LINK

MilitaMan:  What is the take away from that the White Paper that was due out on August 24th, 2020, and to date has not been fully finished and sent into the Parliament with the final amendments?

Why is Tuesday the 13th the day the cabinet is to get the White Paper back?

 As you will see below the Parliament has seen the papers and they were returned on the same day to be amended, yet to arrive.

 Now realize, the Government and the CBI dictate the rate within the papers and or past or present budgets. We have not only not seen the White Papers Amended, we have not seen the 2019 FML Amendment nor the 2020 Budget, yet.

It should be clear to everyone that there is a reason for that. The reason, is the most important and sensitive issue we have before us. Which is the rate that is in the documents that will need to be exposed prior to the 2021 ever getting to the ground floor.

Just as the Salaries are said to be paid and not yet paid? According, to the below they have yet to be paid. Again why is that?

Because, none of the three aforementioned items have been finalized, yet. 

They require imo the new rate.

Just as getting into a market economy needs it too. In fact requires it..

Directly below they, tell us 09/18/2020 they will send the White Papers to the PFC in the middle of next month. Well Tuesday the 13th is right on time or a tad early for the WPs to arrive.

They have even told us on the 10/09/2020 they will repeat the "delay" in Salaries until they expose the rate effectively. imo

But, notice below they say they will not repeat that what was done in regard to the September Salaries for subsequent future months ahead.  Why the change in tune over a 24 hour period?

Well the WPs are apparently going to the Cabinet again and likely with the amendments to paragraphs within them on the 13th. I'll bet key paragraphs that were left out for a reason when the PFC had them. A very sensitive one. One that will or would have exposed the exchange rate, hence, the repetitive delays in paying salaries to date.

Will they pay tomorrow, as they suggest below? Don't know, but if they do will it be at a program rate or not? That is to be determined, however, they could have paid them already at a program rate and have not due to liquidity issues, nor could at a new rate with out having one yet.. lol

As far back as 06/22/2020 they talk about the Fiscal and Monetary Policy and have again recently. That fact they are talking about Fiscal Policy is rate sensitive, just as interest rates are.

Allawi talks about interest rates above and a problem with providing salaries for the months ending 2020. Yet, it does say he had a diagnosis for that and it will solve the problem.

Raising the value will fix it and will allow for the borrowing law to be voted on.. It will have to be, as the rate is the law to be for 2021, 2022 and 2023 from the looks of it.

Lets see what the day brings tomorrow, Monday and Tuesday the 13th, a day when the US Mint will adjust Silver Pricing. Coincidence? Don't know, but if the US Mint adjusts large? It may not be one.. imo 

Iraq is now ripe for investors, as we witnessed with the IMF, the WB, WTO, BIS, EBRD, EuroClear, IBBC, etc.. All are in town to help the country be successful. I am very optimistic they have every intention to go to a market economy!!  imo ~ MM

Shafaq News / The Parliamentary Finance Committee revealed, on Friday, that the government will send the reform paper to the House of Representatives in the middle of next month.

2020-09-18 11:29

Committee member Jamal Cougar told Shafaq News Agency, "The government will present the reform paper to the House of Representatives in the middle of next month," noting that "the paper includes reducing the salaries of higher and special posts while preserving the salaries of employees."
He added that "the paper that the Ministry of Finance is preparing will include several reforms, including the spending fields, stopping waste, operational and investment budgets, and providing the appropriate environment for foreign companies to invest."

On Monday, June 22, 2020, Prime Minister Mustafa Al-Kadhimi announced the details of the paper prepared by the Council of Ministers, which includes economic, financial and administrative reforms.

He pointed out that mismanagement and fully dependence on oil revenues is what led Iraq to this difficult economic situation, and “we seek to address it by working to activate the agriculture, industry, tourism and investment, and other sector.”

https://shafaq.com/en/Iraq-News/Disclosure-of-details-about-the-governmental-reform-paper

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Shafaq News / The Financial Committee of the Iraqi Parliament proposed submitting the "white reform paper" to solve the "Crisis of Salaries in the Iraqi state".

 2020-10-07 07:04

A member of the committee, Naji Al-Saeedi, told Shafaq News Agency, "the white reform paper addresses the fiscal and monetary policy", indicating, "this paper encompasses creating real economic resources to consolidate the existing financial resources and reducing unnecessary expenditures".
Al-Saeedi explained, "it helps finding additional income for the budget and reducing the deficit. This will positively affect the provision of employees' salaries and secures them for the upcoming period".

Al-Saeedi stated, "the white reform paper is a futuristic vision for the Iraqi government, in cooperation with the Council of Representatives, to end the employee salaries crisis, as well as other financial and economic crises. This paper is not part of the solution but rather the entire solution".

"The parliament will follow up on the implementation of this paper as soon as it is approved. Our position will depend on how serious the government is in implementing the paragraphs of this paper", he continued.

The government of Iraqi Prime Minister Mustafa Al-Kadhimi is heavily criticized for its inability to secure sufficient funds to pay the salaries of state employees, which may expose it to tremendous pressure in the coming months. The government had not yet released the salaries of state employees for September, even after a week of October has passed already.

https://shafaq.com/en/Economy/The-White-Reform-Paper-is-the-only-solution-to-the-Salaries-Crisis-MP-says

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Parliament is awaiting two bills from the government on the budget and borrowing

10th October, 2020

The Parliamentary Finance Committee said on Saturday that Parliament is still awaiting sending two draft laws from the government regarding the financial budget and borrowing.

The committee's reporter, Ahmed Al-Saffar, explained to Shafaq News, "The government did not send any law to the parliament, whether it was the general budget law for 2020 or the new borrowing law.

He added, "We in the Parliamentary Finance Committee hope that the government will send a reform paper or a law in which there are all operational and investment expenditures for the past months in order to know the size of government spending for the year 2020 and adopt it on 1/12."

Last month, the government approved the fiscal budget bill and sent it to Parliament, before withdrawing it again for amendments.  LINK

Al-Halbousi: Parliament does not neglect the issue of salaries or other expenses, and the government bears responsibility

10/10/2020 17:01:43

 Parliament Speaker Muhammad al-Halbousi affirmed, on Saturday, that parliament is not neglecting the issue of salaries or other expenses, and the government bears responsibility.

Al-Halbousi commented on the issue of employee salaries during today's session, saying, "No governmental request has reached the House of Representatives to legislate a law that strengthens the government's budget to fulfill its obligations before citizens."

Al-Halbousi added, according to the council’s statement, that “a letter amending a borrowing law has not been sent to the House of Representatives,” indicating that “a budget law was received by the parliament that was withdrawn on the same day to make amendments to it.” 

And Al-Halbousi indicated, "We are waiting for the government to send to the House of Representatives a draft law that enhances the government's revenues to enable it to fulfill its obligations before the citizens."  LINK

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Reassurances about employee salaries for the remaining months

10th October, 2020

The repercussions of the employee salaries crisis are still present, despite the Ministry of Finance's announcement a few days ago that it had released state departments' dues and some of them received their dues

A member of the Parliamentary Finance Committee, Jamal Cougar, confirmed in an official statement, today, Saturday, that the government has secured salaries for the coming months

Cougar said, "Salaries will be secured for the coming months, and what happened in September of the delay will not be repeated, especially after the assurances launched by the prime minister. He added, "There are about eight million families who benefit directly from the salaries, whether they are employees, retirees, or within social care and others, such as the private sector, markets or merchants

The Ministry of Finance is supposed to complete the financing of the salaries of the remaining departments that have not been spent on Thursday, as the ministry said in a statement that it is making efforts to complete the procedures for paying the salaries of all state and governorate departments and will complete the financing of the salaries of the rest of the other departments next Sunday

Al-Rasheed and Al-Rafidain Bank confirm that they resume official working hours on holidays to complete the payment of late September salaries.  In turn, a member of the Parliamentary Finance Committee, Naji Erdis, said that the government is able to secure employees' salaries through non-oil revenues

Erdis pointed out that "Iraq has many sources of funding that can supply the state treasury, most notably the border crossings, taxes and communications, which could reach if real reforms are implemented within the framework of maximizing them to 3 trillion per month

And Erdis indicated that "non-oil revenues can be secured through which employees' salaries are in addition to oil revenues and the expert, Ahmed Ibrihi, had previously confirmed that the problem is not in salaries, as the current crisis can be managed with internal borrowing, and the central bank is helping government banks to perform this task, for the remainder of 2020 and 2021

Ibrihi suggests that 70% of the non-oil exports targeted in the investment program be from the share of the manufacturing industry, and the rest from non-oil mining (including gas and agriculture), and that we have no other choice. As for the infrastructure, there are specific proposals for its development LINK

KTFA Members "Saturday News" 10-10-2020

KTFA:

Samson:  Fearing China's supremacy ... global central banks unite to launch a digital currency

10th October, 2020

On Friday, a group of 7 major central banks, including the US Federal Reserve, set out to define what a digital currency would likely look like, to help catch up with a pioneering role for China and outpace private projects such as the stablecoin of Facebook's Libra.

Central banks and the Bank for International Settlements said the key features should include durability, availability, at low or no cost, appropriate standards, clear legislative framework, and an appropriate role for the private sector.

The growth in non-cash payments since the lockdown measures were imposed to combat the Corona pandemic, said John Cunliffe, deputy governor of the Bank of England and head of the Payments Committee at the Bank for International Settlements, is accelerating how technology can transform forms of money.

Central banks have begun closely examining digital currencies, after Facebook last year announced its Libra currency, which has yet to be launched, and will be backed by a mix of major currencies and government debt.

Since then, the entity behind Libra has modified its plans, and is currently hoping to launch several "stable currencies" backed by single currencies. Cunliffe added that central banks need to keep pace to avoid the private sector closing payment gaps in inappropriate ways.

In addition to the Federal Reserve (the US Central Bank) and the Bank of England, the seven banks that have allied with the Bank for International Settlements include: the European Central Bank, the Swiss National Bank, and the Bank of Japan.

China is already testing a digital yuan, while the People's Bank of China says it will further spread the yuan in a currency world dominated by the dollar.

 On Thursday, Kenji Okamura, the top Japanese diplomat involved in financial affairs, said that China is seeking to gain the leading advantage in building its own digital currency, warning that "this is something we should be afraid of."LINK

Don961:  Finance Minister: We will present the white paper for reform to the cabinet next Tuesday

 10/10/2020 12:48:03 PM  

Baghdad / Al-Masalla: The Minister of Finance, Ali Abdul Amir Allawi, revealed, on Saturday, October 10, 2020, the date for submitting the reform paper to the Council of Ministers and its contents.

Allawi said in a statement followed by the obelisk: "We will present the white paper for economic reform to the cabinet next Tuesday."  

He added, "The paper includes a diagnosis of the origin of economic problems and treatments that will be difficult, but there is no alternative to them." 

"We have a problem in providing salaries for the remaining months of the year without voting on the borrowing law," Allawi said, pointing out, "We will deal with increasing the interest rate on bank loans by reducing it."  LINK

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Samson:  A member of the Democrat: The Sinjar Agreement is a gateway to implementing Article 140 and will extend to other cities

09/10/2020 23:51:40

 A member of the Kurdistan Democratic Party, Subhi Al-Mandalawi, revealed that the agreement of the federal government and the Kurdistan Regional Government regarding Sinjar district will extend to other cities that fall within Article 140 of the constitution.

Al-Mandalawi told Al-Furat News, "The agreement between the federal government and the Kurdistan Regional Government, in cooperation with the United Nations on Sinjar, we can consider it a historic and very important agreement, and it came as a result of meetings, dialogues and agreements to restore stability to this city, which has suffered from the sway of ISIS and after its liberation from ISIS." It was a theater and a burning area because of the PKK."

He added, "There is a clear signal (in the agreement) not to accept the presence of any local or foreign forces, and therefore the agreement will certainly be implemented and its results will be on the ground, and what matters to us as the regional government is that the agreement will be on the city and will extend to other cities, within Article 140 and the return of the Kurds and the Peshmerga in Khanaqin and Mandali.

These are the results of discussions that have taken place and are taking place and will be a gateway to implementing the constitutional article." "With regard to the Labor Party, we reject its presence in Sinjar and other regions as it poses a threat to attack villages, and Iraq and the region will be subject to direct threat," Al-Mandalawi added, stressing that "this agreement will be a guarantee for the return of safety, and Sinjar is managed jointly between the federal government and the region on the security and service side."

The Federal Government and the Kurdistan Regional Government announced this evening, Friday, a joint agreement on the normalization of conditions in the Sinjar district of Nineveh Governorate. The agreement includes, according to a statement by the Prime Minister's Office, "restoring stability in the Sinjar district, many administrative, security and service points. The administrative aspect is agreed upon with the Kurdistan Regional Government and Nineveh Governorate, taking into consideration the demands of the people of the judiciary."

The statement added, "Everything that is security falls within the scope and powers of the federal government in coordination with the Kurdistan Regional Government, and the service side will be the responsibility of a joint committee between the federal government, the regional government and Nineveh Governorate."

In his comment on the agreement, Prime Minister Mustafa Al-Kazemi affirmed, "The completion of the agreement on the administrative and security files in the Sinjar district, which would speed up and facilitate the return of the displaced to the judiciary." In its correct form, to ensure its success, in cooperation with the people of Sinjar first, he also stressed the government's keenness and seriousness for Sinjar to be free of armed groups, whether local or from outside the borders. While the mayor of Sinjar district in Nineveh province, Mahma Khalil, confirmed to the Euphrates News that the agreement includes removing the PKK forces from the judiciary.

As for the head of the regional government, Masrour Barzani, he said, "The agreement will be the beginning of the implementation of Article 140 of the constitution," he said.   LINK

Samson:  The United States congratulates the Iraqi government

9th October, 2020

The United States congratulates the Iraqi government and the Kurdistan Regional Government on reaching an agreement of cooperation in Sinjar.

We look forward to its full implementation and hope this agreement will lead to lasting security and stability for the Iraqi people in northern Iraq.  LINK

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Samson:  Learn about the terms of the economic reform paper that the Ministry of Finance will release soon

10th October, 2020

Professor of Economics at Basra University, Nabil Al-Marsoumi, revealed some of the articles of the economic reform paper called the "White Paper", which the Finance Ministry is working on to reform the economy

Al-Marsoumi said, "As I expected in previous publications that the government reform paper will not deviate from the framework of the International Monetary Fund's policies and austerity measures with high social costs. This can be seen by looking at some of what was mentioned in the reform paper that the government called white, as follows

1- Reducing the wage and salary bill from 25% of GDP to 12.5% ​​within three years

2- Reforming the retirement fund so that it is not linked to the budget, and retirement salaries are paid directly from the fund

3- Reducing financial support for state-owned companies by 30% every year for a period of three years

4- Reducing total government support from 13% of GDP to 5% within three years

5- Restructuring the public salary scale by stopping new employment and replacement operations in the public sector

6- Setting a ceiling for employees’ salaries to achieve justice and reduce differences

7- Applying income tax to employee allowances, incentives, bonuses, etc

8- Reviewing fuel subsidies for state-owned oil companies, and the proceeds from the sale of black oil must be returned to the state treasury

9- Issuing national bonds and instruments and offering them for public circulation in the Iraq Stock Exchange

10- Studying the current exchange rate of the dollar against the dinar and taking into consideration the requirements of financial and monetary stability and achieving the competitiveness of the Iraqi economy

11- Restructuring the state-owned public companies and converting them into private companies

12- Correcting the defect in the ration card system to ensure the protection of people with limited income and withholding it from families whose income exceeds a certain ceiling

13- Ensure that all workers in the public, private, mixed and cooperative sectors are included in retirement benefits

14- Completing the Social Insurance Law in order to be a substitute for the unified retirement, retirement and social security laws for workers  LINK

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Samson:  Iraq maintains the 38th place among the countries most possessing gold

10th October, 2020

The World Gold Council announced, on Saturday, that the central banks of countries possess 35 thousand tons of gold, indicating that Iraq is ranked 38th among the countries that possess the most of these reserves

"The central banks of the 100 countries listed in the table possess more than 35 thousand tons of gold, with a value of about two trillion dollars," the council said in a report during the month of October

And she added that "Iraq still maintains the 38th rank," noting that "these reserves amounted to 96.3 tons, which is equivalent to 8.8% of the rest of the other currencies

He pointed out that "Iraq bought 23.9 tons of gold in 2012 and then bought 12.4 tons in 2013, and then bought 47.6 tons in 2014," noting that "the last purchase of gold for Iraq was in 2017. By 6.5 tons

 He pointed out that "the most central banks of the countries buying gold during the year 2020 were the share of Turkey, which bought 167 tons, followed by India by 33.3 tons, while the countries that sold gold the most during the current year were Uzbekistan, which sold 33 tons, followed by Sri Lanka, where it sold 12.9 tons

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

MilitiaMan, Frank and more Friday PM "There Must Be A Rate Change" 10-9-2020

KTFA:

MilitiaMan:  Direct payment of the salaries of defense personnel and other departments

10:37 - 10/08/2020
Al-Rafidain Bank announced, on Thursday, that the salaries of employees of the Ministry of Defense and other departments will be paid.

"The salaries of employees of the Ministry of Defense and other departments have been paid."

The statement indicated that "bank branches are open to continue distributing and completing the exchange process." 

MilitiaMan:  Let’s look at this a bit closer..  Banks do primary deposits and withdrawals. Not distributing and exchanges per se.. So, did banks open for the masses on a holiday? Or did only essential employees work and if so, for what?

The thinking is from the above, imo there is other things at play. Keep in mind we expect an imminent MR to take place and realize they have been talking about fiscal and monetary policies.

Fiscal is about value and monetary is more about management.. Well, management would need to have new currency distributed that has value and It to be exchanged for old currency with lesser value.. Goes hand in hand.. imo If true, then this looks even better !!! Imo ~ MM

Edna:  But all this is meaningless till the show the citizens the New Lower Denominations as we where told on the CC...So I'll hold My excitement till then..IMO  

Youngsc:  Rate can come before new notes imo as Frank stated in the past or can come out at the same time very quickly imo

DeepWoodz:  Yup...rate must come. Logic says they should come simultaneously. Hand in hand. One is no good without the other. ImoThere are many here that it appears, have been hoping for so long and had their expectations bashed in the past, that are a little gun shy. That’s understandable but....

* we have a new PM
* a new CBI governor
* corruption on the run
* citizens united and upbeat
* bozos on the run
* greatest president ever in the USA
* KTFA to help us make it to the finish line teams at work tirelessly and endlessly…..KTFA leader put here for such a time as this…..like minded individuals praying together
* and most importantly.... a God who loves us and is in FULL control. 

I believe if you just stop and think, there is more than enough to be excited about.  imo

MilitiaMan:  It truly is not meaningless imo and the rate is to be exposed before or at the same time as the NSCNs. The fact that we/they have been non stop in regard to education issues, it exactly what they need and we should expect. Thus, they telling us they are to change the value of the Dinar to the Dollar and not in an inflationary way, is truly meaningful. If one takes the view, just show me the money, then I'll get excited is fine for some, however, not everyone has that sort pessimistic view. The study is a good one and following along with excitement is hope, has nothing wrong with it.. Nor is there anything wrong with having excitement just from the progress of things in the news, etc. Peace to you and enjoy the weekend.. We are in exciting times, like I have ever seen before. imo ~ MM

.. "the most important of which is the central bank’s approach and monetary policy that restores the balance of the dinar’s price against the dollar in the daily auctions to sell the dollar by the Central Bank of Iraq, by raising the subsidy slightly from the exchange rate in a way that achieves the price change at a specific and studied rate To avoid the issue of inflation."

"which requires a review of the monetary policy to curb this chaos and achieve tax and customs revenues equivalent to the volume of imports, which we and with us many experts and specialists in financial affairs believe that the exchange rate must change, provided that it is accompanied by a set of supportive measures and decisions, to control Expected inflation."

Deepwoodz: IMO I missed this the first couple reads….  Citizens are viewing special instructions! Hmmm, concerning nscn’s (LD’s) maybe?

Samson:  El-Rafidain announces that he will continue to open accounts for citizens

1st October, 2020

Al-Rafidain Bank announced, on Thursday, that it will continue to open accounts for citizens and other segments to deposit their money in the bank

The bank’s media office said in a statement received by "Al-Eqtisad News", that "the bank continues to open accounts (savings and current) for citizens and deposit their money in exchange for interest

The bank called on citizens to "visit bank branches for the purpose of viewing special instructions and placing their money in the bank and not hoarding it in homes in light of the positive benefits set by the bank in return for that

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Samson:  Justifications For Changing The "Iraqi Dinar" Exchange Rate

9th October 2020
Iraq is going through very sensitive conditions, as the Iraqi economy faces a real challenge after the excruciating failure to find alternatives to selling crude oil, prosthetic solutions, and weak control over public expenditures, and with the absence of sovereign investment funds that secure additional imports and a portfolio to protect the future of generations, especially in times of crisis.

Aid request to pay salaries

Iraq today has reached a request for aid in order to pay the salaries of employees and retirees because what enters the treasury is not equal to less than half of what Iraq needs to cover salaries only, although the government has solutions if there is the will to improve the financial position and fill the budget deficit, by reducing public spending and controlling Wasted resources and support for the local industrial and agricultural product and other economic solutions, the most important of which is the central bank’s approach and monetary policy that restores the balance of the dinar’s price against the dollar in the daily auctions to sell the dollar by the Central Bank of Iraq, by raising the subsidy slightly from the exchange rate in a way that achieves the price change at a specific and studied rate To avoid the issue of inflation.

Taking into account international economic variables

Our constant demand for a change in the exchange rate was based on a realistic vision that included all aspects of international economic variables due to the decline in oil prices and the Corona pandemic, as well as the chaos of imports, the loss of control and control over the border outlets, the volume of counterfeiting, corruption and smuggling through unofficial outlets, all causing the Iraqi market to be violated. And dumping it with inferior and cheap commodities and preventing the upgrading of the local product, which requires a review of the monetary policy to curb this chaos and achieve tax and customs revenues equivalent to the volume of imports, which we and with us many experts and specialists in financial affairs believe that the exchange rate must change, provided that it is accompanied by a set of supportive measures and decisions, to control Expected inflation.

The failure of the previous administration of the Central Bank of Iraq

However, the previous administration of the Central Bank insisted on continuing with the policy of fixing the dinar’s price against foreign currencies, under the pretext that changing the exchange rate would reflect on high prices and inflation and harm vulnerable social strata and other justifications that do not get fat or rich from hunger. 

The continued sale of the currency at a fixed exchange rate by the Central Bank will lead to the bankruptcy of the state and the collapse of the economic system in conjunction with the decline in oil prices and the abandonment of a million barrels of its share for the benefit of others in these difficult circumstances the country is going through,

The assumption that the survival of this equation, which is in support of imports, industries and exports of neighboring countries, will lead to the accumulation of goods in exchange for a cheap dollar that the exporting countries benefit from at the expense of the Iraqi economy stopping. The basis on which we started by demanding a change in the exchange rate is the fact that the state is not fully in control of the imports of the border outlets, including those in the Kurdistan region,

Exchange rate change proposal

Therefore, we included the proposal to change the exchange by collecting tax and customs duties in advance from importers in the window of currency sale, and to clarify the matter, if we calculate the price of oil specified in the draft budget law at (56) dollars per barrel, meaning the rate of decrease is (15%), so the exchange rate is assumed ( 1300) dinars per dollar, and if (5%) was levied for the tax and (15%) for the customs fee and added to the exchange rate to become (1500) dinars per dollar, so we would have withdrawn the rug from the corrupt in the northern, western, eastern and southern outlets and we got On revenues from the state treasury, the monetary result to the state treasury every day is the sale of a dollar at a rate of (200) million dollars, and in the case of adopting the new exchange rate, it will be (60) billion additional dinars for each auction day, which is approximately (18) trillion dinars annually.

Conclusions:

First - Achieving revenues for the federal government’s treasury that exceeds (18) trillion dinars annually from the amount of tax and customs, with a price difference at least.

Second - Elimination of currency smuggling, as imports will be real and in the amount of transferable sums.

Third - ending the phenomenon of tax and customs evasion at the border crossings.

Fourth - the submission of all ports to the authority of the federal government and thus solve the problem of imports of goods and goods from the ports of the Kurdistan region because of the preference in terms of taxes and customs fees.

Fifth - ending all tax and customs exemptions for institutions and government departments and others.

Sixth - ending the phenomenon of the mediator in selling dollars and commissions of private banks, because dealing must be with the real importer and not with speculators, which will be reflected in the development of the export sector for local products and the creation of job opportunities.

Seventh - Streamlined flow of goods and goods from the border crossings.

We expect the new administration of the Central Bank of Iraq, which has taken positive steps to correct the previous paths and approaches, which are in line with the reform plan, more decisions to create a real banking sector, and we hope from them to study the ideas and proposals presented by our council that serve the public interest.   LINK

Frank26:  YA THINK !!! ??? ....................................................LOL

MilitiaMan:  I do.. lol ~ MM (thumbs up)

MilitiaMan:  They must do a rate change and not the 1300 or 1500 they mention in an odd way, that won't work.The way that works is the collection of taxes, customs, etc.. Curbing corruption, stopping of smuggling, transparent accounting, etc.. All things in the conclusions is supportive of a future market economy and the experts are saying so.. It doesn't include runaway inflation, they have that taken care of, by adjusted the the Dinar to the Dollar exchange rate. More dollars it takes to buy dinar...  Very well timed.. imo.. ~ MM

Samson:  NIC plans to Revitalize Stalled Projects in Iraq

9th October, 2020

Iraq's National Investment Commission (NIC) has announced that it has prepared a plan to revitalize stalled projects.

NIC Chairman, Suha Dawood Najar (pictured), said:

"NIC have prepared a plan to revitalize the investment process all over the country in all sectors through activating the lurking and halted projects and reshaping them financially and technically, noting that " there is some red tape that hinders the implementation of these projects, the matter that urged NIC to directly coordinate with the concerned departments and institutions to solve problems especially these connected to infrastructure and investment projects in health and industry sectors.

"The financial ceiling for the investment projects within which NIC was concerned is 250 Million $ and above according to investment law but we currently seek to adopt all projects regardless of its area or financial cost, assuring at the same time that we are about to find a clear and well defined mechanism through which we can equally involve the citizens and the private sector in NIC projects to ensure its funding.

"NIC started real steps to solve the problems that face lurking investment projects and visits have been made to a number of projects in several provinces (Basrah, Kerbala, Wasit) to participate in easing these problems."

The Chairman also referred to the importance of activating the role of the One Stop Shop to solve the red tape problem and assured that "the Commission seeks to take its role in adopting the economic policies for the investment process in the country and not to be exclusively devoted to granting investment licenses but also revitalizing the halted projects" stressing the significance of activating the investment law in a way that harmonize with the new vision and avoid loopholes in law that obstruct this goal."    LINK

MilitiaMan:  Fairly sure the NIC knows that the mechanism is a new internationally accepted currency with strength to it.. imo That is about to take place. The ascension to the EBRD is paving the way along with the WBs guidance too.. imo Timing is great and no doubt we are witnessing them come together  now.. imo ~ MM

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Samson:  Close sources reveal what Saleh and Al-Kazemi are seeking regarding the region

10/09/2020 10:53:40

Sources and officials close to the Iraqi decision-makers revealed a rapprochement and great understandings between Baghdad and Erbil to solve the outstanding issues between them.

The spokesman for the Deputy Prime Minister of the Kurdistan Regional Government, Samir Hawrami, said in a press statement, "The ambassadors of countries and diplomatic missions have repeatedly emphasized the necessity of agreement between the region and the center during their meetings in the Kurdistan region and Baghdad, and they had a great role in converging views between the two parties during their meetings." 

He pointed out, "There is an intention and a preliminary agreement to resolve all sticking points between the two parties, and there is a joint delegation between the Ministries of Finance and Planning in the Kurdistan region with their counterparts in the federal government to develop a financial strategy between the region and the Center for the years 2021, 2022 and 2023, and discussions are continuing on this issue, but reaching an agreement." It requires more discussions and meetings to solve many technical points."

Kifah Mahmoud, the media advisor in the office of the head of the Kurdistan Democratic Party, Masoud Barzani, believes that “Prime Minister Mustafa Al-Kazemi, by virtue of his good relationship with the leaders of the region and his accurate knowledge of the Kurdish issue, its joints and backgrounds, helped build a positive shift in the course of the relationship between the region and the center despite the short period of his work, Especially if the early elections that he set for next June are realized. And, "the relationship in general took a positive turn and contributed to developing partial solutions and agreements for some problems, such as employee salaries, border crossings, and the energy file," he said.

A media source close to the prime minister's office said, "Any prime minister cannot pay corporate debts without a comprehensive agreement that guarantees delivery of all the region’s oil, and without reviewing those oil contracts." On the other hand, a high-ranking source from the Presidency said, "The President of the Republic, Barham Salih, is working in coordination with the Prime Minister to develop understandings to solve problems, in coordination with the President of the Kurdistan Region and the government." He pointed out that "there is convergence of views and seriousness on both sides to resolve all outstanding matters for more than ten years and to reach a satisfactory solution for both parties in accordance with the legal and constitutional entitlement."

The spokesman for the Prime Minister, Ahmed Mulla Talal, said in a previous press conference that "the prime minister's visit to the Kurdistan region sought to resolve issues and enhance understanding," indicating that the meeting between Al-Kazemi and the President of the region, Nechirvan Barzani, dealt with the 2021 budget, which is the starting point for resolving disputes and problems for all. issues and rights." 

He explained that "the talks dealt with the issue of ports and oil and the share of the Kurdistan region and delivered to Baghdad," noting that "the results will see the light in the budget of 2021".  LINK

MilitiaMan:  Yes, that is right. But, be sure, the 2019 FMLA and 2020 budget will be sorted first. Hence, they will know just how much to expect in the future subsequent years to come. With the energy file, taxes, tariffs, customs, LNG, etc. They all know what it means going forward.. Big big Bucks! lol .imo ~ MM

Samson:  Iraq officially joins the European Bank membership and revealed its benefits

10/09/2020 15:26:38

The Ministry of Foreign Affairs announced that Iraq has officially joined the European Bank.

A statement of it stated that the Euphrates News Agency received a copy of it, "The relentless efforts of the Ministry of Foreign Affairs represented by the Embassy of the Republic of Iraq in London and the European Bank for Reconstruction and Development have resulted in the approval of the members of the Bank's Board of Governors for Iraq to join the Council, during the voting process witnessed by the work of the annual meeting. 

For the Board of Governors, which will be held in London for the period 7-8 October 2020." He added, "Iraq’s formal accession to the bank’s membership will allow it to benefit from international banking expertise to develop the banking sector, and to obtain technical support and assistance that creates a suitable ground for investment."

The statement continued, "This common achievement has been secured despite the difficult circumstances imposed by the outbreak of Corona virus on various countries of the world, including Iraq. We hope that this step will be an introduction to joint action aimed at strengthening the private sector in Iraq to be able to compete and contribute to supporting development." Sustainable in the country."

He pointed out that "on this occasion the embassy appreciates the efforts of the European Bank for Reconstruction and Development, especially the members of the Board of Governors, Secretary General Enzo Kwatruchuchi, and the staff of the Secretary General's office."  LINK

MilitiaMan:  They took the first step and now has ascended to the UBRD.. VEry well done. They will now have access to International Expertise going into a market economy with a vibrant private sector.. It is just about go time.. imo ~ MM

MilitiaMan and KTFA Members "Over Sooner Than Later" 10-8-2020

KTFA:

Don961:  With "lengthy" lines, an economist "detonates" a bomb: Is the salary crisis contrived and there is no deficit?

2020-10-08   Yes Iraq: Baghdad

Economist Imad Abdul Latif, today, Thursday, elaborated on the transmission of a “huge” opinion to what he described as his “professor”, the economist Dr. Ahmad Al-Buraihi about the problem of the government's inability to pay employees' salaries, and clarifying the confusion and confusion between the general budget, the cash budget, and the financial management crisis in Iraq".

Abd al-Latif, in his lengthy explanation followed by Yass Iraq, began by asking: “Is the“ problem ”of the government's inability to pay employees’ salaries a “fabricated”, “fabricated” and immediate problem that is being exaggerated in the short term .. and it is solvable in the long run Al-Taweel .. and that the monetary and financial institutions (and authorities) in the country know the causes and dimensions of this “problem” well, and know (and this is the important thing) that they are able to develop appropriate solutions for them, with the means and resources available to them?

 He added, “About this question, my esteemed professor and the beautiful Iraqi mind, Dr. Ahmad Ibrihi Ali, answer the following:

The problem is not in salaries, as the current crisis can be managed with internal borrowing, and the Central Bank is helping government banks to perform this task, for the remainder of 2020 and 2021.

- The delay in the payment of salaries occurred due to obstacles of a coordination and procedural nature between the government and the parliament. And that it is easy to overcome these obstacles, and it is expected (logically) that salaries will not be late, nor should they.

- There is always fear of intimidation and confusion between medium and long-term goals, that is, between those goals related to development and diversification, on the one hand, and the ongoing management of financial and monetary operations on the other hand.

And here it is no secret for any Iraqi, or those familiar with the economic affairs of Iraq, that the general budget revenues, other than crude oil, appear to be non-existent, and that the financial sector is strange in its underdevelopment .. No taxes are sought, nor are bonds bought by the public .. What remains but borrowing from the banking system, and what remains other than auctions, satirical poems that do not work.

- There is an axiom that the deficit in Iraq is twin, or double, that is, a deficit in the balance of payments, and a deficit in the state's general budget. This occurs because oil exports are almost the only source of foreign exchange, which when the price collapses below the volume required to finance imports of goods, services and other payments.

- The problem of Iraq and the threat looming in the future is the potential deficit of the balance of payments, not the deficit in the state's general budget.

Emphasizing the need to prepare the cash budget (or management cash) as a basic element in managing public spending to avoid surprises and sharp changes, as much as possible, and also to regulate borrowing whose close relationship with the monetary policy and international reserves of the Central Bank is not hidden.

- The core issue in the monetary budgets in Iraq is the distinction, without ambiguity, between two systems of funds and inflows and outflows, namely: funds, resources and uses in foreign currency, and another in the national currency.

- Here, we must abandon the approach recognized in the Ministry of Finance, which is that resources and uses are the same, and are expressed in two currencies: a dinar and a dollar. The budget, according to the prevailing and influential perception in decision-making circles, is oil revenues in dollars that are mathematically translated into dinars and spent.

- This understanding was behind a lot of confusion, and was also a major reason for impeding the development proposals. This understanding is the truest expression of the reason for the split between the external balance of payments and the general budget in Iraq, in thinking and economic policy, and it is also one of the causes of theoretical ambiguity and neglecting the realistic difference between the necessities and implications of internal and external borrowing. (For more details, see Professor Ibrihi’s study, the task: “Budgets Cash to the government finance department, ”link is mentioned in the comments).

Hence the necessity to focus on building productive capacities destined for export. (Professor Ibrihi had previously presented (in his latest research) a brief proposal for an investment program for this purpose) .. And now also, here he is repeating his call to everyone who is keen on the future of children and grandchildren, to be a support and aid in order to focus awareness on an investment program to build Productive capacities for export, and that the government immediately commits to it.

The economy, any economy, is limited by two restrictions: the domestic productive capacity restriction, and the balance of payments restriction. As long as the economy does not approach the limits of production capacity, as is the case in Iraq, the explosion of inflationary waves is not afraid, regardless, yes, regardless of how the public budget deficit is financed.

- But the problem here lies in the restriction of the balance of payments, because the foreign exchange inflows into Iraq are less than the annual demand. Until now, the reserves of the central bank are still filling this deficiency between foreign exchange inflows and annual demand, and imports are still funded in the required volume..and this process (with the continuation of the low level of oil price) will reach its maximum limits .. Yes, it will reach its maximum limits if we remain We are unable to find solutions ... but not in 2021.

- Everyone (economists, or those concerned with economic affairs) should review the data of the World Bank (WDI) (World Development Indicators | DataBank) data ... as it will become clear to them that the percentage (or share) of manufacturing exports to total exports constitutes more than 70% The world level), and in the countries of East Asia and Germany, this percentage reaches 80%, then 90%.

Therefore, Professor Ibrihi suggests that 70% of the non-oil exports targeted in the investment program be from the share of the manufacturing industry, and the remainder from non-oil mining (including gas and agriculture), and that we have no other choice. As for the infrastructure, there are specific proposals for their development.

- With great regret, the members of Parliament, the government (including the Ministries of Planning and Finance), as well as economics professors, have insisted on defining the problem as a problem of deficit in the state budget, when in fact it is a problem of deficit in the balance of payments.

Mr. Ibrihi concludes his answer by stressing that the problem is not in salaries, nor in “monetizing debt,” but rather in distracting awareness from the necessity of economic growth through industrialization ... that miraculous historical process that made the civilization of this world.  link

MilitiaMan:  The answer to the headline question is “yes”.  Look closely.. The professor is fully aware that going into a market economy is what is needed and supports it. He even implies to do it immediately.. The need to export once at a new rate will be target and with purchase power cost will come down so they can be competitive in world like many other countries he mentions.. industrialize.... or be left out.. imo ~ MM 

DeepWoodz:  And let’s not forget the reason salaries haven’t been doing well and this RI hasn’t happened is because of the corruption. It would appear that the clean up has settled down recently after all the previous arrests being made. The word has gone from trickling down to a flat out flood so the citizens should be well aware of the situation. Hopefully the people start getting the feel of their dignity and humanity back after being stepped on for so long by the bad guys. The fields are ripe. Imo

Jay:  Iraq's version of the LEFT are fighting this RI tooth and nail. It will end their cash cow and lift the peeps up in class and stature which will affect political party voting lines and sides. Thus ensuring the Shiites power will weaken substantially. Purchasing power increase goes without saying. We are in a great place. The news is outstanding.  Best articles I've seen in my 8 years. Lol. But more needs to be done. We just disagree on when is all Lol. To be honest I pray for sooner than what my later is. Lol. God's timing is always on time. Lets see what they do.

MilitiaMan:  Interestingly enough, there are more things in my view outside of what we read in the news that supports this is about over sooner than later. When an Iraqi dealer in currency decides to stop selling his currency as his stake in tens of millions realized just how serious this is, thanks to kind people keeping at him that this Time is in fact real, as it gets and that the environment is actually ripe for the re instatement, he picked up the phone and made a call to thank that friend for the tenacity and consistency of what he was hearing on the ground and from family in baggers, is consistent with what we are now seeing in the fine articles we have seen in my 10 and your 8 years... That is one source, there is more with similar views.. The one was very pessimistic, not any more..  As always, we shall see... imo. ~ MM

Don961:  An existing scenario will divert the central bank's vaults to save “paper” instead of money ... this is what will happen with regard to commodity prices, the dollar and alternative solutions.

2020-10-08 Yes Iraq: Baghdad

There are multiple and varied solutions that will force Iraq to follow them in order to remedy the imposed financial crisis, while these solutions collide with several obstacles and challenges, but the current and proposed scenario will force the state and the Central Bank to follow some of these solutions.

The starting point of the financial scenario that will be imposed on the country begins with a challenge facing the central bank represented by the decrease in its dollar revenues due to the sale of oil, and its attempts to maintain the exchange rate of the dollar against the dinar and not to increase it.

"Losing" equation

An economist told "Yes Iraq", saying: “An average of 2.5 to 3 billion dollars enters into the central bank per month, resulting from the sale of Iraqi oil exported outside the country without others. As for the local sale of oil derivatives, revenues from outlets, taxes, levies and communications, they are levied in the Iraqi currency, so it is not Its effect on increasing foreign currency reserves.

While about $ 3 billion enters the central bank’s treasury per month, about $ 4 billion comes out of the treasury, as the central bank sells it monthly to banks and hawala companies, as a result of the dollar’s ​​capital request for the purpose of importing goods from outside Iraq, and these goods are for sale to citizens according to the capital’s claim. , And submitted by them with identity papers.

As a result of the difference between the dollar coming in and out of the central bank, the bank began to consume dollars from its reserves, for the purpose of covering up the dollar’s ​​demand, fearing that its price would rise if sufficient quantities were not pumped out.

The Iraqi dinar is threatened with disappearing from the bank's treasury as well!

The Central Bank also bought bonds from government banks worth 19 trillion dinars, as it provided the amount in Iraqi dinars and kept the bonds with it in its vaults, and the banks loaned the amounts to the government, and there is a new loan application submitted by the government to Parliament and awaiting approval.

In the event that the situation continues as mentioned, the dollar will disappear from the central bank or decline to its lowest level, and the dinar will decrease from its coffers and replace it with bonds.

What happens after the disappearance of the dollar from the bank’s treasury?

If the dollar disappears, its value will increase dramatically, and then all the commodities denominated in dollars will rise.

 What will the government do?

The government will reduce expenditures for the purpose of reducing internal borrowing from banks and selling bonds to the central bank, as internal borrowing is from government banks, which in turn sell bonds to the central bank, so the central bank prints the currency and gives it to the banks to buy the bonds or use the currency stored in its vaults that was not put up for circulation, as if The process is to print a coin without a cap in gold and dollars.

Another solution is to get money from selling the dollar at a higher price

Another thing that the government can do is reduce the value of the dollar against the dinar, so that it can cover the salary expenses when selling the dollar to the central bank after selling oil, as it will try to pressure to reduce the quantities of the dollar sold by auction, and it will face two problems (the first) is its fear of its inability to cover the demand External, (second) the inability to be influential, especially with the difficulty of trying to obtain dollars without oil due to the fact that Iraq is an environment that expels dollars, visitors and investment.

New solution

The orientation towards import alternatives, which is a great opportunity for aspirants in the private sector, through the shift from trade to industry, and from import to export, by building substitute factories for every commodity on which there is a demand for clothing, equipment, foodstuffs, etc., and the value of demand in Iraq for goods is estimated Foreign Ministry by 40 to 50 billion dollars.

Get a dinar in another way

Maximizing the state's revenues from the local dinar from some sectors, but this step collides with some economic indicators and others related to the great interests of the influential people, according to specialists.

As the reduction in expenditures will lead to a decrease in the prices of local goods and services, and not to decrease the dollar-denominated goods. link

MilitiaMan:  They have laid out what they are to do and it is imo to be immediately from what he stated in the previous article. This one spells out they have a choice that makes the most sense and that is by reducing the value of the dollar to the Dinar..  And it even suggests there may be a gold component to it.. This report is very well written and is embraced by the public and his peers, imo ... Good job Don961! Thank you - MM

Delta and KTFA Members Thursday 10-8-2020

KTFA:

DELTA:  Today, Wednesday, the governors of the European Bank for Reconstruction and Development approved Iraq's request to become a shareholder in the bank.

The request was approved during the bank's annual meeting held in a virtual session due to the outbreak Corona Virus.

And the European Bank Reconstruction and Development (EBRD) is a multilateral development bank that uses investment as a tool to help build market economies and was founded in 1991

https://www.alsumaria.tv/news/ 

Popeye7:  A very telling show of trust by European banks for Iraq

Bambi:  And the European Bank Reconstruction and Development (EBRD) is a multilateral development bank that uses investment as a tool to help build market economies and was founded in 1991...

Sooo...what comes to mind is Kuwait revalued their currency in 1991, I wonder if the EBRD had anything to do with that? IMO

Don961:  The reform paper ... a new salary ladder and measures to maximize revenues

5,400 Economie 2020/10/07 20:48 ht  Baghdad today - Baghdad

A member of the Parliamentary Finance Committee, Representative Naji Ardis, revealed, on Wednesday, October 07, 2020, the most prominent contents of the reform paper presented by the Minister of Finance, Ali Allawi, to improve the economic reality in the country.

In an interview with (Baghdad Today), Ardis said, "The white reform paper presented by the Minister of Finance to improve the economic reality in Iraq focused on two very important aspects in order to apply it during the coming short period. The first: stopping waste in the public expenditures of the state, for example we buy "The imported Iranian gas is three times as much, then we give it to the electricity production company in the Basmaya region to sell energy to the government, electricity for three times, and this causes a great waste of public money."

He added that "the other and important aspect of the reform paper is to maximize public revenues, whether direct tax or customs, as well as setting a new salary scale to achieve the principle of social justice, to reduce the disparity in the salaries of ministries and government institutions."

A member of the Parliamentary Finance Committee, Ahmed Mazhar al-Jubouri, said Tuesday (October 06, 2020) that the Minister of Finance had burdened the country with large debts, while he indicated that the white reform paper had turned black, he said.

Al-Jubouri said in an interview with (Baghdad Today), that "the government is directing the problem of delaying the payment of salaries to the House of Representatives, and he is innocent of it," noting that "the Minister of Finance pledged before taking office to present a white paper for comprehensive economic reforms, despite repeated calls to him to present it." As it was the core of our work, it was only air in a net, ”he said.

He added, "The government and the Ministry of Finance gave them two months after the vote on the borrowing law to present the paper, but nothing happened to Parliament," indicating that "the great calamity is that finance demands borrowing again."

The deputy asked, "What is the benefit of the ministry and its advanced staff and advisors, if their work is to borrow and distribute salaries without any other solutions?" Noting that "the Minister of Finance has burdened the country with large debts, which are mainly suffering from debts accumulated for decades."

He pointed out that "the coming days will witness a problem between the parliament and the government because of the borrowing law, and linking it to the distribution of salaries," explaining that "the government sends negative messages through pressure to obtain borrowing under the pretext of paying salaries that will burden the country with debts."

He explained, "The Minister of Finance's reformist white paper has turned black," noting that his committee "isolated the borrowing law completely from the budget last year, but now we were forced to borrow so that salaries can be paid in this miserable way."  LINK

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Samson:  Al-Rafidain: Our branches started their work today to distribute the salaries of employees

09:40 - 10/08/2020

Al-Rafidain Bank announced, on Thursday, that its branches in Baghdad and the governorates will start working hours today to complete the payment of employees' salaries.

The media office of the bank said in a statement received / the information /, a copy of it, that “based on the directives of the Minister of Finance and follow-up and supervision by the bank’s director general, the bank’s branches in Baghdad and the governorates are open to receive and pay the salaries of state departments employees.”

The statement added that "the salaries of many of the state's domiciled departments have been raised their salaries at the bank during the past two days and for holders of the MasterCard."

He explained that "the bank continues to provide its branches with the necessary sums to complete the process of paying salaries and distribute them to employees easily and without any obstacles."  LINK

Samson:  The Anti-Corruption Committee arrests the Vice-Investment Authority at Baghdad Airport

7th October, 2020

An informed source revealed, on Wednesday, October 7, 2020, the arrest of a senior official as part of the anti-corruption campaign at Baghdad International Airport.

The source added, "The Anti-Corruption Commission arrested, on Wednesday, by a court order, Salar Muhammad Amin, the head of the investment commission in charge, who served as vice president earlier."   LINK

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Don961:  A thousand billion ... What if? … Sahban Faisal

2020-09-30  Sahaban Faisal Mahjoub - Consulting Engineer wrote:

The figures indicate, according to certified statistical documents, that the total annual financial budgets for seventeen years past have exceeded one thousand billion dollars. This number exceeds the total budgets of the Iraqi state, since its establishment in 1921 until the year of the occupation in 2003.

Before the occupation, Iraq witnessed, despite the exceptional circumstances, a construction boom in which distinct edifices were built that included all aspects of life (integrated infrastructure, a typical educational system, a capable military force, a solid industrial base) ... ... etc.

Under the occupation and the domination of successive quotas governments, the Iraqi citizen did not touch any shifts in the development of public services and did not witness a new construction for any of the life facilities, but witnessed a decline in them and an aging of their facilities until some of them became partially or completely paralyzed where the deficit occurred in infrastructure projects And it became unable to provide the necessary public services.

Iraq is considered one of the developed countries in the region, with the quality of scholars, academics, and professional experts, and many of them with different specializations.

Returning to the number of the thousand .. What if this two billion figure, which Iraq gained from the sales of its national wealth, was spent since the year of the occupation on the basis of wisdom, sound awareness, independence of national decision and conditions of integrity away from confusion and according to accurate scientific foundations in planning?

It is recognized that, in light of the availability of the national will, Iraq would be at the forefront of the countries that were able to secure the infrastructure according to solid and modern foundations, achieving distinctive stability for their societies, and consequently the welfare of the citizen.

I put a lot of money in perforated containers and were a catalyst to move corrupt hands to take over it ugly.

In the electricity sector, for example, nearly sixty billion US dollars were allocated to rebuild and develop the electrical system. The successive administrations in the Gaza Strip, after the occupation, refused to deal with them, and this was due to the absence of the national will and the adoption of inadequate and sterile plans that were written by the failure to devise decisive solutions, in addition to leaving the doors through which corruption infiltrated legally without a trusted watchdog.

The waste in spending was not limited to the electricity sector only, but also included all sectors: (productivity, service, educational, health) and all other sectors, which achieved a clear decline in the efficiency of their performance, as the citizen was deprived of what was expected of him in terms of improvement in services and the achievement of foundations good life.  link

Don961:  Surprise .. Central banks give up investing in gold

 Economy  ,   2020/10/07 21:00   

Baghdad - Iraq today:

Most of the central banks around the world abandoned investing in gold last August, in a surprise that did not reflect the great rise that the yellow metal achieved during 2020.

The World Gold Council said, on Wednesday, that central banks sold more gold last August than they bought, ending a year and a half of monthly increases in gold purchases.

The council stated that this central bank’s decision contributed to halting the rapid rise of the yellow metal price.

Gold rose from just above $ 1,500 at the start of 2019 to a record high of $ 2,072.50 in early August and then down to around $ 1,900.

Investors in Europe and North America pushed prices up and raised gold in hopes that it would retain its value during the Corona crisis.

But demand from major consumers such as jewelers and central banks has been weak, sparking concerns about a continuing rally.

The Gold Council said that central banks, which collectively hold 35,000 tons of gold worth about $ 2 trillion, sold 12.3 tons more than they bought in August.

Central banks bought 656 tons of gold in 2018, the highest number in half a century.

Last year, purchases amounted to 650 tons.

Today, gold prices rose by about 1% to recover from early losses incurred at the beginning of the session, while silver shined after a significant increase in its prices.

Gold had fallen by about 2% in the previous session, driven by new concerns about the economic recovery and the uncertainty surrounding the US presidential elections.

And gold increased in spot trading 1% to 1895.46 dollars an ounce by 0727 GMT.

The US President, who is still being treated for Covid-19, announced the suspension of negotiations on an additional stimulus package until the presidential elections on November 3.

The announcement boosted the US dollar and pushed gold lower. The yellow metal is widely seen as a hedge against inflation and a depressed currency.  link

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Don961:  With the help of the internet giants, Washington confiscates dozens of Iranian "propaganda" websites

 France Press  08 October 2020

As of Wednesday, visitors to these sites are seeing the confiscation message

On Wednesday, the United States confiscated the names of 92 Iranian "propaganda" electronic domains, including four English-language news sites "operated by the Iranian Revolutionary Guard or for its own account."

The US Department of Justice stated, in a statement, that these sites were identified thanks to information obtained from Google, and then with the help of Twitter and Facebook.

The statement pointed out that 4 of these sites, namely, "News Stand7.com", "USJournal.net", "USJournal.com" and "TW Today.net" were "operated by the Iranian Revolutionary Guards or operated." For his account "with the aim of influencing domestic and foreign policy of the United States.

The other 88 domain names include news sites that aim to "spread Iranian propaganda" aimed at Western Europe, the Middle East, and Southeast Asia.

As of Wednesday, visitors to these sites now see a message bearing the slogans of the US Department of Justice and the "FBI" entitled "This site has been confiscated."

The contents of the letter explain that "this domain was seized by the FBI based on a forfeiture warrant issued by the Northern District Court in California."

"We will continue to use all the tools available to us to prevent the Iranian government from misusing American companies or social networks for the purpose of spreading propaganda, trying to influence the American public, and spreading chaos," the statement quoted Assistant Attorney General John Demers as saying.

He added, "Bodies that spread false news have become a new means of misleading, used by authoritarian states that continue their attempts to undermine our democracy."  LINK