KTFA Members "Friday News" 10-23-2020

KTFA:

Samson:  The formation of an international financial alliance to support Iraq in Britain

22nd October, 2020

Today in London, I announced the establishment of an international financial coalition that includes 7 foreign and Iraqi financial institutions, to provide advice to the Iraqi government to face the stifling financial crisis that led to the state’s inability to commit to paying employees’ salaries on time and resort to internal and external borrowing

The International Financial Alliance to support Iraq includes the G7 countries, which are "America, Britain, Japan, France, Germany, Canada and Italy, in addition to the International Monetary Fund and the World Bank, and from Iraq includes the Ministry of Finance, the Central Bank of Iraq and the Parliamentary Finance Committee   LINK

P71rock:  Please think about this group... They are they represent the collision forces and they are the creditor(s)....  IMO

Samson:  This is Iraq:
- a strategic location
- rich and diverse natural resources
- a talented and educated workforce
- ambitious and creative entrepreneurs
- a welcoming and stable business environment
- a booming domestic market #InvestIraq pic.twitter.com/QAmQCIcIjN

— Government of Iraq - (@IraqiGovt) October 23, 2020

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

Samson:  Al-Kazemi returns to Baghdad after a European tour

10/23/2020 18:30:06

The Prime Minister, Mustafa Al-Kazemi, has returned to the capital, Baghdad.

Al-Kazemi had led a high-ranking government delegation since last Sunday, a European tour that included France, Germany and Britain.   LINK

David:  The man has arrived, the news coming out after his return should get rather interesting! IMO

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

Samson:  Shiite authority and America .. behind the scenes of a rare meeting with Khamenei, leaders of Iraqi factions

22nd October, 2020
The British "Middle East Eye" website revealed, on Thursday, an order given by Iranian Supreme Leader Ali Khamenei, last week, to the Iraqi Shiite factions to stop their attacks on American interests immediately.

The site quoted a prominent commander of one of the Iranian-backed armed factions participating in the attacks as saying that Khamenei's orders were clear and explicit: "All attacks that target US interests in Iraq must stop." The Hezbollah Brigades, the faction most hostile to the United States and accused of carrying out most of the attacks, were the first to respond to Khamenei's orders, and Harakat al-Nujaba and other smaller factions soon followed. 

While a prominent commander in one of those factions participating in the attacks said to the British website: "The Americans seek to pit people against us in various ways, so we decided to thwart the efforts of the Americans in this regard, which is more important than targeting the American embassy." He added, "Calming the Iraqi street, preserving the Iraqi government and the political process is a priority now, and therefore it has been decided to stop all attacks targeting US interests in Iraq until the danger passes." The major shift in the position of the armed factions backed by Iran, and the timing of the announcement of this unilateral truce, raised many questions about the true purpose behind the decision, its circumstances, its duration, the guarantor of the decision, and most importantly, the identity of the decision-maker.

Iraqi officials and leaders of armed factions told the website that the armed factions were encouraged to attack American targets in order to pressure Trump and his allies inside Iraq, and push them to take reckless moves that lead him to lose the elections. Nevertheless, it seems that the calculations have changed after the Iranians confirmed the seriousness of the threats that Pompeo conveyed through Iraqi President Barham Salih, that the United States would strike Iran's interests and its allies inside Iraq, according to a prominent Shiite leader close to Tehran.

The politician who participated in the talks with Iran told the British website that the Iranians had received very important advice from a common ally who had a clear role in changing their position, and the advice stipulated to avoid provoking Trump at this stage, because he is serious about his threats, and because he is desperate and will not hesitate to take any A reckless act will cost everyone heavy losses. Any military move inside Iraq now means the fall of the Iraqi government, and Iran itself will not be able to deal with the repercussions of the fall of the government, especially the repercussions of a political, financial and economic nature.

That alleged "common ally" is Britain, a country that Shiite leaders see as the real party on the Iraqi scene at the present time, and he is credited with persuading the Iranians to avoid provoking the Americans and pursue the option of appeasement. The politician added that there is no clear information, but all indications indicate that the British were the ones who played an influential role this time, although they did not appear in the picture as usual. Unusually, Khamenei's instructions were not transmitted this time to the armed factions through the usual channels or Iranian officials operating in Iraq.

Instead, given its importance, the leaders of the most prominent factions were summoned to Qom to meet with Khamenei, according to 3 of the faction leaders, including the oldest Iranian-backed Shiite group in Iraq, the Badr Organization, the Hezbollah Brigades, and the most influential faction, Asaib People of truth, and there was more than one meeting with Khamenei. While a prominent commander of one of the armed factions said that the essence of the orders issued was preserving power in the hands of the Shiites, and this means preserving the position of the prime minister and the current government, Khamenei says that Al-Kazemi is Shiite, regardless of whether he is good or bad from our point of view, and he will leave his post Sooner or later, but the position must remain in the hands of the Shiites.

 The commander added that Khamenei had warned that any attacks now would threaten Al-Kazemi's rule, and thus the political strategies of everyone, and "therefore any activities that might threaten the Iraqi government or place it at the mercy of the Americans must stop immediately."    LINK

Samson:  Trump signs decision to remove an Arab country from the list of "terrorism"

23rd October, 2020
The Transitional Sovereignty Council in Sudan announced, on Friday, that US President Donald Trump has officially signed a decision to remove Sudan from the list of countries sponsoring terrorism.

The Sovereignty Council said, in a communiqué, that the signing was made in an official capacity by Trump, adding, "It will be announced shortly." The communiqué, published on the council’s official Facebook page, stated that this day is a “historic day for Sudan and its glorious revolution”. 

Trump said in a tweet on his official account on Twitter, Monday, that "the new government of Sudan, which is making tremendous progress, has agreed to pay $ 335 million to the victims of terrorism and their families." He added, "Once the payment is made, I will remove Sudan from the list of states sponsoring terrorism." And he continued: "Finally, justice is for the American people, and a big step for Sudan."

After that, a Sudanese government source told "Sky News Arabia" that the sums required to compensate the victims of terrorism were transferred to Washington. Finance Minister Heba Muhammad Ali also revealed to "Sky News Arabia" that the amount that the US President talked about "exists and that the technical mechanism for transferring funds is almost complete ... while we await some small diplomatic details." 

The US President’s announcement of removing Sudan from the list of states sponsoring terrorism left many positive reverberations in Khartoum. According to US law, the president is required to formally notify Congress of the decision, and Congress will have 45 days to review it. The resolution does not need a vote, but Congress can stop the decision with a joint veto from the House of Representatives and the Senate together, and the decision becomes effective if it is not objected to during this period for review.   LINK

***********

Samson:  Expectations to announce an agreement to normalize relations between Israel and Sudan today

23rd October, 2020

"Reuters" agency quoted a senior US official as confirming that it will be announced later on Friday that Israel and Sudan have reached an agreement to normalize relations.

The official, who asked not to be named, confirmed to the agency that US President Donald Trump's decision this week to remove Sudan from the US list of state sponsors of terrorism contributed to paving the way for Khartoum to follow the example of the UAE and Bahrain in joining the so-called "Abraham Accords."

This comes against the background of press reports that Khartoum and Tel Aviv reached a preliminary agreement to establish relations.   LINK

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

Samson:  America imposes a heavy financial penalty on a famous bank for its role in a global corruption case

22nd October, 2020

Goldman Sachs Bank agreed, Thursday, October 22, 2020, to pay nearly $ 3 billion to settle an investigation into the role it played in the global corruption scandal related to the Malaysian wealth fund "OneMDB".

The settlement resolves an investigation by the US authorities into the bank’s role in the private placement of three offers to sell bonds in 2012 and 2013, which raised $ 6.5 billion to the Malaysian government, according to Reuters.

Under these terms, Goldman Sachs, which is one of the largest banks in America and the world, was imposed a fine of $ 2.3 billion, and about $ 600 million, in fees for illicit gains.

The US Department of Justice said the deal constitutes the largest penalty ever imposed on a US company for violating the Foreign Corrupt Practices Act, and includes an unprecedented number of regulators around the world.

Brian Rabbit, Acting Head of the Criminal Department at the Ministry of Justice, explained that the settlement reflects the central role of the bank "in a huge global scheme to plunder billions of dollars" from the Malaysian state fund.

Prosecutors said that between 2009 and 2014, Goldman paid more than $ 1.6 billion in bribes to foreign officials in Malaysia and Abu Dhabi to win the fund's business.

The move comes on the heels of a settlement of 3.9 billion dollars that the bank reached with Malaysia in July, to settle all charges against it there related to this case.  LINK

MilitiaMan Thursday PM "The World Supports the Date and Rate" 10-22-2020

KTFA:

Don961:  After a meeting in London that included the Minister of Finance .. Statement of the Economic Contact Group for Iraq

330 Policy 2020/10/22 19:05Baghdad Today - Baghdad

The British Embassy in Baghdad, Thursday, October 22, 2020, published a statement that resulted from the meeting of the Iraqi government and international partners in London today.

"The Iraqi government and international partners met today to launch the Economic Contact Group for Iraq, which is an international coalition to support the government of Iraq in pushing for the implementation of critical economic reforms," ​​the embassy said in a statement.
The embassy published the text of a statement issued by the Economic Contact Group for Iraq, as shown below.  link  

MilitiaMan:  Perfect timing. Look at that. International Partners. To launch the Economic Contact Group for Iraq. An international Coalition to support the government in pushing forward with economic reforms. Just out of the embassy. Well, this supports that the requirements for to ascend into the EBRD is like I mentioned earlier, as they have the WP sorted that fits their agenda. That is to bring Iraq to a market economy.. I am fairly sure this is proof we are correct in that reforms are on the way. Big time too. imo ~ MM

Don961  Finance Minister: European countries are preparing the White Paper, an ambitious program for comprehensive economic reform in Iraq

2020-10-22  Yes Iraq – Baghdad

The Minister of Finance, Ali Abdul Amir Allawi, announced, on Thursday, October 22, 2020, the support of international organizations and industrial countries for the White Paper.

The media office of the Minister of Finance said in a statement: “Allawi confirmed, after his participation in the tour of Prime Minister Mustafa Al-Kazemi to a number of European countries, that the White Paper received absolute support from industrialized countries and international organizations for the first time.”

The statement added that “international support and welcoming the white paper is an achievement of the Ministry of Finance,” indicating that “international organizations have seen that Iraq faces arduous economic challenges overshadowed by the crisis of Corona and the decline in oil prices, and that the White Paper is an ambitious program for comprehensive economic reform, enhancing the growth of the private economy and protecting the most groups Double ”.

He pointed out that "the industrialized countries and international organizations announced their support for the Iraqi government's vision of reform not only to ward off the current crises, but to create permanent economic opportunities for the Iraqi people that meet their aspirations."

The statement pointed out that “earlier, the Finance Committee in the Iraqi Council of Representatives announced its support for the white paper that aims to reform and activate the private sector and change the course of the national economy from the role of state control to the role of regulation, law enforcement, attention to vulnerable groups, social welfare and work to make radical improvements to The state administration of the public financial system to reduce the continuous waste of resources, and also seeks to restructure the banking sector and put in place scientific and real solutions to raise the production of the public sector.    LINK  

Tweets

Deputy PM @AliH_Allawi thanked the UK for hosting the meeting, and outlined the strategic goals of Iraq’s White Paper for Economic Reform saying that the support of the IECG will help Iraq to navigate the upcoming challenges.

Deputy PM @AliH_Allawi The meeting was co-chaired by Iraq and @WorldBank with the participation of members of Iraq’s Parliamentary Finance Committee, representatives from G7 countries and the IMF who pledged their support for the White Paper for Economic Reform recently adopted by the refoms

Iraq’s Deputy PM and Minister of Finance @AliH_Allawi  attends in London the first meeting of the Iraq Economic Contact Group (IECG) hosted by the UK’s Minister for Middle East & North Africa

MilitiaMan:  The rate is said to be sensitive and will need the support of the CBI and IMF.. These meetings are in Europe and most important the UK in London. I hope you all can see the relationship of all this to todays news articles. The line up in all three tweets is massive. The Entire G7 around the world is involved.. They alll support the date and the rate, ioo... Basra Boyz, Petra, etc. Massive data...  WOW!! ~ ~ MM

Don961:  Pictures: Iraq discusses its economic crisis with 3 influential international parties

2020-10-22  Yes Iraq - Baghdad

The British ambassador to Iraq, Stephen Hickey, expressed his happiness at the meeting of Iraq with the Group of Seven and the international criticism to discuss its economic crisis.

Hickey said in his post that it is wonderful to see the meeting of the Group of Seven, the International Monetary Fund, the World Bank, and the Finance Committee in the Iraqi parliament to support economic reform.

He added: International support is crucial at this difficult moment for the Iraqi economy.

 The United Kingdom announced earlier today, Thursday, October 22, 2020, the formation of the Economic Contact Group on Iraq in an effort to stimulate international support for the urgent economic reform program in Iraq.

A statement by the British Foreign Office stated that the United Kingdom will launch a three-year program at a cost of 6 million pounds sterling to provide global expertise to achieve economic growth and improve the security situation.

She added: Prior to his meeting with Iraqi Prime Minister Mustafa Al-Kazemi today (October 22), Foreign Minister Dominic Raab stressed the need to support the Iraqi economy, which is facing difficulties, and to work with the government to improve stability and security in the country, to ensure a better recovery from the Corona virus.

She explained that, given the high number of COVID-19 cases and the decline in oil prices, Iraq is in urgent need of international aid. Therefore, the United Kingdom announces a three-year program, at a cost of 6 million pounds sterling, to support the ability of the Iraqi government to meet these challenges. This new program draws on international experiences from the public and private sectors to enhance stability in Iraq and introduce vital economic changes in order to accelerate growth.

The Foreign Ministry continued: The United Kingdom also mobilized the international community to form an economic contact group on Iraq (the “Economic Contact Group”), which will work with the Iraqi government to develop a roadmap to implement change in an effort to stop the economic crisis and provide job opportunities so that the Iraqi people can secure a better future.

She explained: The first meeting of the Economic Contact Group will be held at the Ministry of Foreign Affairs and Development headed by Deputy Prime Minister and Minister of Finance Ali Allawi, Minister of Middle East Affairs James Cleverley, and in the virtual presence of participants from around the world.  LINK

MilitiaMan:  Per Twitter feed the meeting is not to be done, it has already happened. The virtual presence? Very efficient. Very safe and secure.. Can't believe all of those involved agree to support Iraq internationally! Big time financial supporting entities. All on board and in support. The World Bank, IMF, EBRD, G7, UK, USA, etc.. Go time soon or what? lol ~MM 

Tweets

@AliH_Allawi  thanked the UK for hosting the meeting, and outlined the strategic goals of Iraq’s White Paper for Economic Reform saying that the support of the IECG will help Iraq to navigate the upcoming challenges.

Deputy PM @AliH_Allawi The meeting was co-chaired by Iraq and @WorldBank with the participation of members of Iraq’s Parliamentary Finance Committee, representatives from G7 countries and the IMF who pledged their support for the White Paper for Economic Reform recently adopted by the refoms

Iraq’s Deputy PM and Minister of Finance @AliH_Allawi  attends in London the first meeting of the Iraq Economic Contact Group (IECG) hosted by the UK’s Minister for Middle East & North Africa

KTFA Members "News and Views" Thursday PM 10-22-2020

KTFA:

Samson:  The "25 October" demonstrations halted military operations in Basra

22nd October, 2020
A security source said, on Thursday, that operations of a sincere promise to confine weapons to the hands of the state would stop in  Basra Governorate.

The source told Shafaq News that the decision was issued by the Basra Operations Command until the completion of the demonstrations on October 25.

The "Tishreen demonstrators" intend to organize large demonstrations next Sunday (October 25) to demand the detection of the protesters' killers and accountability for the corrupt.  LINK

Samson:  The Speaker of Parliament receives the US ambassador

22nd October, 2020

Today, Thursday, Parliament Speaker Muhammad al-Halbousi received the US Ambassador to Iraq Matthew Tueller.

The meeting discussed bilateral relations and the strengthening of strategic cooperation between Iraq and the United States in accordance with mutual interests.

During the meeting, the US ambassador affirmed his country's support for the Iraqi government at all levels to achieve development, security and stability.  LINK

***********

Don961:  Representative Economy: The country needs a quick reform card

Thursday 22nd October 2020  Baghdad: Morning 

The Parliamentary Economic and Investment Committee affirmed the country's need for a quick-implementation reform paper to face the current crisis, stressing the need to develop a clear economic policy to advance the national economy.

Member of the committee, Representative Riad Al-Tamimi, said, “Iraq lacks a clear economic policy from 2003 until now. What led to its dependence on oil revenues and the failure to activate the industrial, agricultural and investment sectors.

He added, "The current government is required to develop a clear economic policy that can advance the national economy, pointing out that there are mistakes and efforts to implement laws on the ground."

He pointed out that “Article 9 of the Investment Law stipulates that a cash allowance should be within the basic design of the lands. But the National Authority calls it a discretionary substitute, confirming that his committee was able through the State Council to interpret this article and be a monetary instead of a discretionary.

He continued, that the current government does not bear the suffering of the Iraqi economy, but the previous governments did not have a clear policy for the economy. LINK

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

Don961:  Ahmed Al-Saffar: Al-Kazemi's visit to Europe is restructuring the Iraqi economy

Thursday 22nd October 2020  Baghdad: Hoda Al-Azzawi

 The reporter of the Parliamentary Finance Committee, Ahmed Al-Saffar, stated that Prime Minister Mustafa Al-Kazemi, during his current visit to France, Germany and Britain, is counting on grants, aid or loans provided by these countries to help get out of the financial crisis afflicting the country, in addition to obtaining support in the security side that It also needs funding.

It will try to push these important countries to remove Iraq from the list of high-risk countries.

Al-Saffar added to "Al-Sabah" that "France, Germany, Britain" are countries with gigantic economies and very high financial capabilities. Therefore, Al-Kazemi's visit is of great importance in several aspects, including agreements to enter these countries as part of his campaign to restructure the Iraqi economy, which was included in the "white reform paper" ».

He stressed that the first stage of the reform paper submitted by the government to the Finance Committee can be implemented by the government, as for the other stages related to restructuring, infrastructure, social care and governance development, they need advanced and highly experienced foreign countries, so the current visit will facilitate the government's work in implementing the paper. The Correctional Facility.    LINK

Bravo13:  The implementation of the white papers has already begun. Imo  

Iobey777:  Yes... also, IMO , they are about to complete implementation by showing the shiny new RATE!!

Don961:  Iraq and Britain are discussing opening branches of foreign banks in Baghdad and the obstacles to joining the first European Bank

2020-10-21 Yes Iraq - Baghdad

The Governor of the Central Bank of Iraq, Mustafa Ghaleb Makhaif, met today, Wednesday, with the Governor of the Bank of England.

A statement by the Iraqi Central Bank stated that the meeting dealt with ways to develop banking relations and increase the volume of investment transactions between the two countries, as well as the importance of cooperation in the field of “combating money laundering and financing of terrorism” and overcoming obstacles that hinder the process of opening branches of foreign banks operating in Iraq.

The statement added that the governor met, within the framework of his visit to the United Kingdom, with the two international auditing companies Ernst & Young and PWC, where he discussed with them enhancing the volume of work with the Central Bank of Iraq because of these companies' experience and reliability, stressing his keenness to maintain the relationship with them during the coming period.

He continued, that the Governor of the Central Bank concluded his meetings with the Secretary General of the European Bank for Reconstruction and Development (EBRD), and the meeting included discussion of the final requirements for Iraq's accession to the European Bank, as well as their desire to deal with private Iraqi companies and banks.LINK

Iobey777:  IMO, they are shouting INTERNATIONAL!!

David:  Yes, that is why they pushed so hard to become SOVEREIGN, TO BECOME INERNATIONAL.....IN 2020. Wouldn't it be great to receive a blessing in such a terrible year?!

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

Samson:  Nassif confirms that there are profits in the banks from farms in Iraq, Vietnam

11:00 - 10/22/2020

Representative Alia Nassif revealed, today, Thursday, that there are sums related to the profits of Iraqi farms in Vietnam in a number of banks, which is further evidence of the return of these farms to Iraq.

In a statement received by the information, Nassif said, “There are amounts related to the profits of Iraqi farms in Vietnam, which we referred to previously, amounting to 16 million dollars in banks, and there is also an amount of 525 million dollars belonging to the Ministry of Foreign Affairs in the banks of Vietnam, but the Ministry of Foreign Affairs refuses to claim it.“

Nassif indicated that "there is information about the existence of a room in the Spanish embassy in which all the documents related to Iraqi property abroad, according to the words of a very old commercial attaché in the ministry."

Nassif stressed “the need for the Prime Minister, the Integrity Commission, and the concerned authorities to verify the validity of this information, take action on it, refer those involved and concealment to the case to the competent courts, and recover the people's right from the corrupt.” LINK

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

Samson: Defense Minister from London: Iraq is a strong and secure country, unlike what the media portrays

22nd October, 2020
The Minister of Defense, Jumah Inad, confirmed, Thursday, October 22, 2020, that Iraq is a strong country despite the problems it is going through, while it was shown that it is possible to move around in Iraq safely, unlike what the media portrays.

A ministry statement received by Al-Masala stated that during his accompaniment to the Prime Minister and Commander-in-Chief of the Armed Forces, Minister of Defense Jumah Inad, accompanied by the Minister of Foreign Affairs, held an expanded video conference at the Russian Institute RUSI, the Royal Institute for United Studies for Strategic, International and Security Studies in London with many researchers from different parts of the country. The United Kingdom and the World.

The statement added that the Minister of Defense presented a brief explanation of the security situation in Iraq and the Middle East region, indicating that despite the problems that Iraq is going through, it is a strong country with great capabilities and qualifications, and anyone can now go to Iraq and travel day and night in all its parts with great safety, unlike Some media channels portray it to the world.

The statement quoted Inad as his assertion that the Iraqi government is continuing to implement its tasks until the elections next year.  LINK

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

Samson:  Al-Tamimi explains the legal way to return the smuggled money

19:39 - 10/21/2020

Legal expert Ali Al-Tamimi clarified, on Wednesday, the legal way to return the smuggled and frozen funds outside Iraq.

Al-Tamimi said in a statement to "the information", that "the money smuggled abroad, which is estimated at 500 billion dollars, can be recovered through the 2005 money laundering agreement signed by Iraq with the help of a number of countries," noting that "Iraq can benefit from Article 50 of The United Nations Charter to collect the funds, which affirms the right of countries fighting organizations placed under Chapter VII to request the assistance of the United Nations, as Iraq was fighting ISIS, which is under Chapter VII under Resolution 2170 of 2017.

He added, "Britain has shown its willingness to assist Iraq in returning and recovering these funds," indicating that "there is an amount of 65 billion dollars in the American Federal Bank, frozen for the former regime, which Iraq can claim according to the 2008 Iraqi-American agreement."

The Parliamentary Integrity Committee confirmed, today, Wednesday, that the federal government has not taken any real action to return the smuggled and frozen money outside Iraq.    LINK

MilitiaMan and KTFA Members "A HUGE Deal" 10-22-2020

KTFA:

A member of Parliament Finance sets an expected date for the October salary distribution  LINK  

MilitiaMan:  He emphasized that the government should proceed with its reforms, noting that the Minister of Finance said that the White Paper will be implemented as of January 1, 2021.

The part that seems to get lost, is the bold underlined above. Reforms are apart of the White Papers. What the White papers are yet to have exposed to the masses, is first and prior to any implementation of the White papers, is a rate at which the reforms will be allocated in and to! Yep, prior to the end of year salaries that are yet to be determined Or have yet to be paid is a rate for the last final 4 months of the year..

Toyvp:  COURTESY OF TGOECKS The White Paper for Economic Reforms: vision and key objectives

 22 Oct 2020 - 2:50 pm

The Iraqi government has formally adopted the White Paper for Economic Reforms prepared by the Crisis Cell for Financial and Fiscal Reform.

The White Paper seeks to put Iraq’s economy on a path that allows the state to take appropriate steps in the future to develop it into a diversified, dynamic economy. Dr. Ali Allawi, Deputy Prime Minister and Minister of Finance

The White Paper is a comprehensive programme that sets out a clear roadmap to reform the Iraqi economy and address the accumulated, decades-old serious challenges that confront it.

Iraq’s Deputy Prime Minister and Minister of Finance, Dr. Ali Allawi said that the White Paper seeks to put Iraq’s economy on a path that allows the state to take appropriate steps in the future to develop it into a diversified, dynamic economy that creates opportunities for citizens to live a decent life.

And although the current severe fiscal crisis that Iraq is going through is related to the recent sharp decline in oil prices and to the repercussions of the Coronavirus pandemic, the White Paper makes it clear that the causes of Iraq’s economic and financial woes date back several decades.

The White Paper identifies the expansion of the role of the state as a key cause of the crisis.

The roots of the crisis

The White Paper provides a detailed outline of the factors that have distorted the Iraqi economy, undermined its capacity to provide a decent life for large number of Iraqis, and its failure to keep pace with the economic developments that the world has witnessed.

The expansion of the role of the state

The White Paper identifies the expansion of the role of the state and emergence of a command economy in Iraq as a key cause of the crisis.

From the nationalisation of vital economic sectors in 1970s, to the commandeering of all economic levers by the state to support the war effort in the 1980s, through the period of  sanctions imposed on Iraq in the 1990s, these shocks, as well as the absence of strategic planning, mismanagement, maladministration, patronage and misguided political ideology, all led to an expansion of the role of the state in all aspects of economic life in Iraq.

The Iraqi economy continued to be directed by the state after the events of 2003 because of the failure of the new political system to create a free and diversified modern economy as outlined in Iraq’s Constitution, and instead continued to rely on the state as the almost only driver of economic activity in the country.

The expansion of the role of the state, and the associated increase in the number of those employed in the public sector and the cost to Iraqi exchequer of their salaries and pensions, came at the expense of the government’s ability to invest in basic infrastructure in Iraq.

To illustrate the point, the White Paper points out that from 2004 to 2020, state expenditure on the salaries of civil servants and on public sector pensions increased by 400% in real terms, as the total number of public sector workers during the same period increased by threefold.

The cost of salaries and pensions of public sector workers is expected to be around 122% of Iraq’s oil revenue in 2020. The White Paper for Economic Reforms

And between 2006 and 2018, average public sector salaries increased by 134%, more than the increase in labour productivity, which rose by only 12%, or the cost of living, which rose by 28% during the same period.

Over the past 17 years, government spending on the salaries of state employees, and on public sector pensions became the fastest growing expenditure item in Iraq’s successive federal budgets during this period.

There are currently around 4,500,000 public sector employees and 2,500,000 pensioners.

Decline of the private sector

The expansion of the state’s role, in addition to the complex administrative system and the state’s weakness in imposing the rule of law, the militarisation of society, and the influence of non-governmental actors in public institutions, led to the decline of the Iraqi private sector.

With the exception of a number of small and medium-sized companies operating in the oil and telecommunications sectors, and very small companies operating in the fields of trade, retail, transport, construction, hospitality and textiles, there is almost a complete absence of private sector companies in manufacturing.

In addition, most of the larger private sector companies depend on providing services to the state and on government contracts.

The White Paper also identified other factors that led to the deteriorating economic situation in Iraq is, most notably:

The collapse of oil revenues

The impact of Covid-19

Mismanagement and lack of planning

The weakness of financial institutions

The absence of modern coherent systems for managing state revenues

An ineffective and outdated banking sector

Complex and antiquated government procedures

Destruction of infrastructure and the costs of the war against Daesh terrorists

Two strategic goals 

The White Paper identifies two overarching strategic objectives. The first is to initiate an immediate reform programme to address the budget deficit to create a fiscal space to give time for the process of implementing the other wider reforms over the medium term.

The second objective is to put the economy and the federal budget on a sustainable path, after which Iraqis can decide and choose the economic direction of the country.

The White Paper anticipates that the short and medium-term objectives and associated reforms will require between 3 to 5 years to implement.

The reform pillars

The White Paper identified five key pillars for the reform programmes:

1- Achieving sustainable financial stability

Key reforms include:

Reducing the deficit from 20% to 3% of GDP and expenditure on salaries from 25% to 12.5% of the federal budget

Collecting electricity tariffs from all users based on the real price of fuel on global markets

Recovering and returning Iraq’s smuggled and stolen money

Increasing revenues from customs and taxes

Reforming Iraq’s Pensions Fund and move to gradually end federal budget support

Reforming financial management systems

Reviewing the current exchange rate of the dollar against the dinar

2- Implementing strategic reforms and creating sustainable job opportunities

Key reforms include:

Modernising and rehabilitating the financial sector

Modernising and rehabilitating the banking system, supporting the development of private banks, reforming government banks and introducing and activating the Core Banking System in Al-Rafidain and Rasheed Banks

Expediting the development of e-banking services

Establishing new trading markets, such as a commodity market and a currency exchange market (Forex)

Supporting the sectors that drive the economy, such as agriculture, oil and gas

Introducing a private sector support fund, simplifying procedures, and providing other non-financial aid

Creating job opportunities in the private sector and supporting small and medium enterprises

Adopting a national strategy for education and training that links educational outcomes with the future need for the labour market

3- improving basic infrastructure

Building Iraq’s digital infrastructure is a key aim of the White Paper.

Key reforms include:

Increasing the effectiveness and improving the performance of all parts of Iraq’s electricity sector

Developing Iraq’s digital infrastructure, including the introduction of advanced technology (4G) at the beginning of next year, and preparing for the introduction of (5G) technology

Modernising the legal and regulatory framework of the transport sector, and encourage private investment in transport

Developing industrial cities and free zones in Iraq

4- Providing basic services and protecting vulnerable groups during and after the reform process

The reforms aim at establishing a unified and financially sustainable pension system for all Iraqis whether they are working in the public, private, cooperative or mixed sector. The White Paper for Economic Reforms

Key reforms include:

Improving water supply for both drinking and irrigation and complete sanitation projects and networks

Building 1,000 new schools during the period of the reform programme

Reforming the social security system

Establishing a unified and financially sustainable pension system for all Iraqis whether they are working in the public, private, cooperative or mixed sector

Completing and implementing the draft health insurance law to ensure that all Iraqis have access to essential health services

5- Improving governance and introducing changes to the legal framework to enable institutions and individuals to implement reforms

Reviewing and amending the official guidance in relation to government contracts

Introducing e-governance systems to strengthen oversight of government contracting and the collection of taxes and customs

Working with specialist investigative international organisations to return the large sums of money smuggled out of Iraq

Introducing an electronic governance system in the field of government contracting and tax and customs collection

Completing the project establishing the National Information Centre to facilitate the introduction of government e-services to citizens, and automate the procedures for obtaining key documents  such nationality and passports and accessing pensions and social security

Introducing electronic signature and transactions throughout the public administration system and phasing out paper transactions 

A detailed implementation plan of White Paper will be published later to outline the required process, identify key stakeholders and establish timelines and monitoring mechanisms.

https://gds.gov.iq/iraqs-white-paper-for-economic-reforms-vision-and-key-objectives/  

MilitiaMan:  No matter how we slice this, they need an international exchange rate prior to launching.

They European Bank of Reconstruction and Development is in the final stages for Iraq's ascension to the bank. It is with them and along with the Global Accounting Firms of Ernst & Young and Pricewater House - Cooper that are involved with the final requirements.

To get to the final requirements tells us this White Paper has already been in play for many months and years already.

To meet with the EBRD and E & Y and PWHC is for to implement it internationally.

They mention in item #1 about reviewing the Dollar / Dinar Exchange Rate and in #2 they talk about new markets that include commodity markets and above all FOREX.

The final requirements appear to have to do with those two key elements of where we are at with this stage of the White Papers. The rest will be over a 3-5 year period.

There is an article telling us that the Director of the CBI as of recent, that an exchange rate is expected from 120 - 121 IQD to 100 USD. 

 That fits with internationalism. Something that the EY and CPWC have been working in conjunction with the EBRD.

News lags reality. Frank has always suggested that if it is in print now, it is done already.

So the final decisions most likely sorted. Again, if the decisions were made an the Prime Minister and the CBI Governor are in an extended stay in London has implications that there was a need for it. Just like the one with the USA was extended.

Keep mind contracts are a big thing in the WPs. imo Very very very exciting and powerful times we are in. Lets see what the CBI says when they get home.. 

The banks are open for accounts today and tomorrow, fwiw too.

To have an exchange rate change as the CBI Director has said would require the NSCNs(LD’s) .. imo ~ MM

DocMagee94:  So White Papers “formally adopted”, and part of First Pillar of reform is to “review the price of the dollar against the dinar”...,why is no one talking about this? Isn’t this a HUGE deal????

MilitiaMan:  It is a huge deal. That is is one reason that I focused on the article. A main reason. As the entities I mention would have the need to know what rate at which to apply value to contracts present and future for both commodities and the Forex markets.. HUGE deal. most likely they are sorted and are ready for the CBI to expose the rate.. imo.. ~ MM 

"Final Requirements" Delta, MilitiaMan and KTFA Members 10-21-2020

KTFA:

DELTA:  Central Bank Governor Mustafa Ghaleb Makhaif discussed, on Wednesday, the final requirements for Iraq to join the European Bank.

Central Bank of Iraq met in the capital, London, today, Wednesday, with the Governor of the Bank of England, and the meeting dealt with ways to develop banking relations and increase the volume of investment transactions between the two countries as well as the importance of cooperation in the field of combating money laundering. Financing terrorism and overcoming obstacles that hinder the process of opening branches for foreign banks operating in Iraq. "

He added that the governor "met, within the framework of his visit to the United Kingdom, with the two international auditing companies Ernst & Young and PWC, where he discussed with them enhancing the volume of work with the Central Bank of Iraq because of these companies' experience and reliability," stressing his keenness to "maintain the relationship with them during the coming period."

"The governor concluded his meetings with the Secretary General of the European Bank for Reconstruction and Development (EBRD), and the meeting included discussion of the final requirements for Iraq's accession to the European Bank, as well as their desire to deal with private Iraqi companies and banks.

Buckeyetree:  Wow Delta's news on Kazemi and European banks sounds very exciting.

Will:  final requirements, aka, show me da money

MilitiaMan:  This sure looks like to me the Final Requirements is a rate to follow suit. The Final Requirements may need not only the rate but, the NSCNs (LD’s) .. I imagine FRANK is smiling like a Cheshire Cat.. This is WSs (WalkingStick’s) bank meeting imo.. Wow!! Holy moly.. imo ~ MM

Samson:  Iraq protests ... report: They will return with greater momentum and clear political demands

With the passage of a year since the commemoration of the outbreak of popular protests in Iraq, experts and analysts expect that these demonstrations will return in a more violent form and include other regions, with the worsening of the economic and security conditions, and after the inability of the current government to meet the basic requirements of the demonstrators. 

According to a report published by the "Atlantic Council", the coming weeks may witness a renewal of the popular protests that erupted in October of last year, killing about 700 people and injuring and arresting thousands of protesters. Iraqi researcher Raghad Qasim, who prepared the report, explained that the demonstrators and activists should be wary of spoilers who might frustrate or hijack the direction of the demonstrations in an attempt to influence events in their favor.

She indicated that the government would be able to control the situation if it committed to protecting the demonstrators, maintaining peaceful demonstrations, and taking bold steps to expose those involved in any escalation.

The report confirms that the Iraqi government headed by Mustafa Al-Kazemi is under great pressure, as it faces many challenges resulting from the health and economic crises due to the Corona virus pandemic, and the drop in oil prices, in addition to the expected renewal of protests that will have "far-reaching consequences", especially given that popular demands It no longer focuses only on social and economic issues, but has gone beyond the political aspect, to demand the passage of a modern election law and early elections.  LINK

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

Samson:  Parliamentary Finance: One trillion Iraqi dinars from the currency auction does not enter the treasury

10:50 - 10/21/2020
The reporter of the Parliamentary Finance Committee, Ahmed Al-Saffar, revealed, on Wednesday, the obscene profits achieved by the window of selling the currency auction, indicating that there are more than one trillion Iraqi dinars that are not included in the state treasury.

Al-Saffar said in a statement to / the information /, that "it is necessary to review the mechanisms and controls of currency auction work to benefit from the money," indicating that "the Finance Committee tried in every way to stop wasting the auction of selling the currency to no avail." He added that "there are obscene imports that are supposed to be entered into the state treasury through customs taxes," noting that "the dollar is sold to merchants in exchange for manifests that prove the entry of goods and goods into Iraq by selling the dollar as an average."

Al-Saffar explained, "The monthly currency auction profits are not less than one trillion Iraqi dinars as taxes, and this amount does not enter the state treasury." The Parliamentary Economic Committee had called earlier in the review of the mechanisms and controls of the currency auction to take advantage of public funds instead of the acquisition of corrupt and theft of public money from them.   LINK

Samson:  41 trillion dinars ... the Iraqi parliament is stunned by the amount of the borrowing for three months

21st October, 2020

A member of the Parliamentary Economy and Investment Committee, Nada Shaker Jawdat revealed, on Wednesday, that the amount that was specified in the borrowing law amounted to 41 trillion dinars, indicating that the Parliament is working to amend this amount.

Jawdat said in an interview with Shafaq News that "the borrowing law so far in the Iraqi parliament is being fully studied," indicating that the required amount in the borrowing law is 41 trillion dinars for the remaining three months of this year.

And she continued, "This figure is huge for a short period, while the amount of 51 trillion dinars has been spent for the past nine months, and therefore the House of Representatives will approve the law, but after it adjusts the amount."

Jawdat indicated that "the government had previously borrowed 15 trillion dinars to cover the salaries of employees, at the rate of ten trillions from the inside and five billion dollars from abroad," stressing "the difficulty of borrowing from abroad because there is no country that agrees to lend Iraq in this economic situation that the latter suffers." And the Finance Committee announced, on Monday, that it had agreed to refer the borrowing law to the Presidency of Parliament for its first reading.

The Cabinet Secretariat sent a draft law on financing the fiscal deficit to the House of Representatives, relating to internal and external borrowing. Last month, the government approved the draft fiscal budget bill and sent it to Parliament, before withdrawing it again to make amendments to it, to be replaced by the Fiscal Deficit Financing Act to Parliament.  LINK

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

Samson:  Change: Iraq possesses important documents on money smuggling abroad

21st October, 2020

The head of the Change Bloc in the House of Representatives, Yusuf Muhammad, admitted, on Wednesday, the existence of important judicial and banking documents on smuggling Iraqi money abroad through the spoilers, expecting that its value would reach tens of billions of dollars.

Muhammad said in a statement that Alsumaria News received, a copy of it, "It is necessary for the authorities to take strict measures against the corrupt and stop the bleeding of Iraqi funds through corruption, in parallel with implementing what is found in the white economic reform paper."

He added, "The financial situation in the country requires difficult and bitter decisions in restructuring the economy in the country," noting that "these reforms have no value without there being decisive measures to fight corruption."

The head of the Change Bloc in the House of Representatives called for "attaching great importance to the file of recovering Iraqi money smuggled abroad after 2003 during the next stage, and for the political class in the country to assume its responsibility towards the economic crisis, and to help return those money through the information it possesses about it."

He stressed, "The presence of important documents in this file through which the existence of these funds and their value can be inferred, in cooperation with European expertise that the government can use in order to uncover them." Smuggled money obtained through corruption."  LINK

Bravo13:  i’ve always thought that one of the main objectives of the gov would be to recover these tens of billions of dollars before the rv, it doesn’t look like they will get this done if this rv’s as soon as we expect,there is going to be a lot of very rich thieves when this revalues like Maliki, can’t believe that man is not behind bars yet !

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

Samson:  Kurdish MP: 12 thousand people receive illegal pension salaries in the region

16:22 - 10/21/2020

The head of the Future bloc and Kurdish MP Sarkut Shams al-Din considered, on Wednesday, that the Pension Authority in the Kurdistan Region is one of the largest institutions of corruption within the region.

Shams al-Din told / Al-Maaloumah / that “12 thousand people receive retirement pensions with the rank of general manager inside the region through illegal means, and most of them are outside Iraq,” considering that “the retirement authority in Erbil is the most corrupt.”

He added that "these were calculated pension salaries for them through the ruling authority parties in the region, and they were basically not employees within the ministries and institutions, but partisan service was calculated for them, and their salaries were very high, and this is the simplest corruption process inside Kurdistan."

On Monday, the deputy for the parliamentary Change Bloc, Ghaleb Muhammad, revealed that there are more than half a million space employees who receive salaries in the region unlawfully, indicating that the Change Bloc participated in the government in order to reform the political system.   LINK

Frank26 Video Replay and Iraqi News Tuesday 10-20-2020

KTFA:

Samson:  A representative source confirms the resumption of parliamentary sessions tomorrow, Wednesday

20th October, 2020

Today, Tuesday, a parliamentary source revealed that Parliament sessions will likely resume tomorrow, Wednesday.

The source explained during his speech to Tigris, that the borrowing bill that the government previously submitted to Parliament, as well as the election law, will be at the forefront of Parliament's agenda during the upcoming sessions.

He stressed that resolving and completing the two laws is a priority in the current period. Meanwhile, another parliamentary source revealed that there is a tendency within the House of Representatives to amend some of what was mentioned in the second borrowing bill before it is passed, explaining that the amendments may include the ceiling of internal borrowing and reducing unnecessary expenditures, in an effort to reduce the damages resulting from resorting to borrowing to fill the deficit and secure Payroll bill.

With regard to the differences over the electoral districts, a source confirmed that the blocs had not reached a consensus formula yet, ruling out the election law being resolved during the next few sessions.  LINK

Monday Night CC Replay   

WALKINGSTICK, DELTA, MM & PETRA!!

https://fccdl.in/9ZOSz81XrS

https://youtu.be/KIw1hWeJ888?t=1

Samson:  Parliamentary Finance: An investigation was opened regarding the payment of September salaries, and doubts about printing other currencies

18:37 - 19/10/2020

The Parliamentary Finance Committee announced, on Monday, that an investigation has been opened to ensure that the government has secured the salaries of September, despite the Parliament's lack of approval for the loan presented, indicating that its insurance is subject to doubts between withdrawing from the central reserve and printing other currencies.

A member of the Finance Committee, Mahasin Hamdoun, told Al-Maalouma that "the government has submitted a second request to Parliament to borrow to secure salaries for the coming months."

And she added that "in the event that the request for borrowing is not approved, the government may announce that salaries will not be disbursed and that the House of Representatives hold the reason for not disbursing salaries," noting that "the government is evading and creating crises and throwing them into the House of Representatives."

Hamdoun explained that "the committee intends to open an investigation that the government will spend the salaries of employees despite the Parliament's failure to approve borrowing," noting that the matter indicates the existence of money and the existence of the financial crisis.

She pointed out that "indicators show that" securing them was done either by borrowing from the Central Bank of Iraq or by printing additional currencies."   LINK

Samson:  Al-Kazemi concludes his visit to Paris and heads to Berlin

19th October, 2020

On Monday, Iraqi Prime Minister Mustafa Al-Kazemi concluded a 24-hour official visit to France and went to Germany on his second leg of his European tour.

Iraqi government spokesman Ahmed Mulla Talal said in a tweet on Twitter, that "during a fruitful 24 hours in Paris, Prime Minister Mustafa Al-Kazemi met with French President Emmanuel Macron, and he held meetings with the accompanying ministerial delegation with the French government," After that he held a distinguished meeting with major French companies, and now on the way to Berlin."

Al-Kazemi left on Sunday evening for Paris at the start of the first European tour by the Prime Minister of Iraq since taking office last May.  LINK

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

Samson:  Ministry Of Trade: The Establishment Of An Economic Forum In Baghdad

19th October, 2020

The Minister of Trade, Dr. Alaa Ahmed Al-Jubouri, discussed with the President of the Federation of Chambers of Commerce, Abdul Razzaq Al-Zuhairi and the President of the Baghdad Chamber of Commerce, Firas Al-Hamdani, ways to provide government support and its orientation to the market economy, put forward proposals, observations, and areas of cooperation with the ministry and hold specialized exhibitions on the grounds of the Baghdad Fair.

The minister stressed that "the establishment of an economic forum in Baghdad has international, Arab and local economic dimensions, and will have the support and presence of the prime minister, ministries, sectors and bodies."

He pointed to "the government's vision, direction and interaction to support the private sector and the market economy, which enhances the national product, by organizing work and opening wide areas for dealing." He said, "His ministry is responsible for the internal and external economic policy of the country, and that the private sector is within this policy and its support receives the attention of the ministry and the government in general."

Al-Jubouri pointed out the need to “work to develop the national product in industry and agriculture and restore the citizen’s conviction in it, as well as restore the status of the national industry in the external environment and define the identity of the Iraqi merchant. For his part, the President of the Federation of Chambers of Commerce, Abdul Razzaq Al-Zuhairi, made a number of proposals, and between the chambers’ role in establishing economic forums And conferences to support the private and public sectors.

He expressed his desire to cooperate with the Department of the Registrar of Companies regarding updating the data of the registered companies annually to get rid of unknown and inactive names, as well as the trade name and what is related to the laws in force, and to cooperate in allocating a permanent hall in the Baghdad Fair to hold specialized exhibitions.

In turn, the head of the Baghdad Chamber of Commerce, Firas Al-Hamdani, said, “There are several proposals in the working paper presented to the Minister of Trade, including the addition of the Baghdad Chamber of Commerce in the membership of the Export Support Fund and the General Company for Exhibitions and Commercial Services, and the establishment of the Iraqi Export and Import Bank, so that the merchant can facilitate the issue of opening documentary credits.

 And adding the Baghdad Chamber of Commerce to the membership of joint committees with Arab and foreign countries, giving exports and exports priority in facilitating procedures, adopting the principle of re-exportation, and canceling the ban on exporting some Iraqi products.  LINK

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

Samson:  Smuggling of 37 Asian workers from Kurdistan and selling them in Baghdad

08:59 - 20/10/2020

The "destiny" organization for combating human trafficking revealed, on Tuesday, that 37 Asian workers had been smuggled "in a disgraceful manner" from the Kurdistan region to Baghdad.

Al-Sabah newspaper quoted the organization as saying, "The workers were smuggled by cargo trucks during the last six months of this year." The organization added, "All workers and workers present in all regions of Iraq entered through the Kurdistan region with a (tourist visa) in cooperation with companies based in the United Arab Emirates, and then they were distributed and sold to employment offices in the capital, Baghdad first, except for a few hundreds who were spotted from Before the organization, they entered Baghdad airport using (visit visa) or (emergency).

The organization appealed to the Minister of Interior, Lieutenant General Othman Al-Ghanimi, “to exercise his legal powers in his capacity as Chairman of the Central Committee to Combat Human Trafficking in accordance with the Anti-Human Trafficking Law No. 28 of 2012 in activating sub-committees headed by governors according to Article 4 / First of the Anti-Human Trafficking Law, in Baghdad and other governorates.

Associated with a region, developing practical plans to immunize society from the methods of traffickers to inflict victims, and coordinating with the Kurdistan Regional Government to prevent their offices and companies from smuggling foreign workers and workers who violate the terms of residency and work to Baghdad and the central and southern governorates, and the initiation of a national campaign to identify the dangers of human trafficking after the increase in the sale of persons And the sale of human organs in Iraq”.   LINK

Samson:  Israel announces opening the airspace and canceling visas with the Emirates

20th October, 2020

On Tuesday, Israeli Prime Minister Benjamin Netanyahu expressed his welcome to the historic visit of the first Emirati government delegation to Israel, referring to the broad prospects for cooperation after the two countries concluded a peace treaty last September.

In a speech he delivered with the arrival of the Emirati delegation, Netanyahu said that agreements will be signed with the UAE during the visit, indicating that they will make the best for the people.

The Israeli Prime Minister affirmed that there would be cooperation with the UAE in a number of areas: “We will cooperate in investment in order to create an economic environment that benefits all citizens and business leaders, who are many in the UAE and Israel.” He added that the UAE and Israel would cooperate in technology and industry in order to serve health and the environment: "All these things are wanted and deserved by the people of our two countries." He pointed out that the cooperation will include the aviation field and exemption from visas, pointing out that: "Skies will be opened between the UAE and Israel, and visas will be canceled between the two countries."

On Tuesday, the first government delegation from the UAE arrived in Israel to discuss cooperation in the fields of investment, trade and technology. According to "Sky News Arabia", agreements for Emirati-Israeli cooperation will be signed during the delegation's historic visit. The Emirati delegation includes Minister of State for Financial Affairs Hamid Al Tayer, Minister of Economy Obaid bin Touq, and Assistant Minister of Foreign Affairs and International Cooperation for Cultural Affairs Omar Ghobash.

On this visit, which is the first for an Emirati delegation to Israel after the signing of the peace treaty concluded last month between the two countries, the two sides will sign four agreements in various economic sectors.

Meanwhile, the US Secretary of the Treasury, Stephen Mnuchin, had confirmed that the peace treaty between the UAE and Israel would lay great foundations for the economic growth of all countries in the region during the next stage.  LINK

Frank26 and KTFA Members Monday Night 10-19-2020

Monday Night KTFA CC with Frank26 and Team

THE IQD UPDATE

PLAYBACK IS: 605.313.5163 PIN: 156996#

Frank26:  10-19-20.....CBI.......I WOULD LIKE TO DATE YOU

THIS IS ALL IN FRANK'S OPINION

https://www.youtube.com/watch?v=KIw1hWeJ888

Samson:  Iraq signs three memoranda with France in the fields of transportation, agriculture and education

10/19/2020 13:39:47

 Iraq signed, on Monday, in the French capital Paris, three memoranda of intent in the fields of transportation, agriculture and education, in the presence of the Prime Minister, Mustafa Al-Kazemi and the French Prime Minister, Jean Castex.

The Iraqi Minister of Agriculture and the French Minister of Agriculture and Food signed a memorandum of intent to enhance cooperation between the two sides in the field of strengthening the institutional capabilities of the Iraqi Ministry of Agriculture, including the exchange of experiences in the fields of agriculture, training, veterinary education, phytosanitary and agricultural research. 

The memorandum also includes encouraging agricultural and food partnerships in the fields of food and agricultural industries, agricultural machinery, and the development of land and water resources.

The Iraqi Minister of Transport signed a memorandum of goodwill declaration with his French counterpart regarding the construction of the suspended train in the capital, Baghdad, while the memorandum of intent, which he signed on behalf of the Iraqi Minister of Higher Education, Secretary General of the Council of Ministers Hamid Al-Ghazi, with the French Minister of Education, included strengthening cooperation in the field of education Between the two parties, expanding the acceptance of Iraqi students in French universities. 

The Prime Minister, Mustafa Al-Kazemi, arrived on Sunday evening, the French capital, Paris, as part of a European tour that includes France, Britain and Germany, during which he will hold several discussions based on developing bilateral relations with the three countries and enhancing joint cooperation in various fields. LINK

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

Samson:  Related to the ministries .. Referring dozens of new corruption files to the Integrity Commission

10/18/2020 19:06

The Parliamentary Integrity Committee revealed, on Sunday, that dozens of new corruption files relating to a number of ministries were referred to the Integrity Commission.

A member of the committee, Sabah Taloubi, said, "The committee has completed the investigation of dozens of new files and referred them to the Integrity Commission, related to the Olympic and Boxing Federation, and other files in a number of ministries, including labor, social affairs, electricity, oil, health, agriculture, agricultural societies, others related to hydraulic industries and another file for Samarra medicines."

Taloubi added, "Some files were referred to the Integrity Commission after the investigation is completed, and some need a long time, so they are submitted to the Integrity Commission or the Public Prosecution to complete the investigative procedures," noting that "most of the reports that were referred are contracts."   LINK

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

Samson:  Integrity: Executing an arrest warrant against the former governor of Nineveh

10/19/2020 14:12:22

 Today, the Federal Integrity Commission announced that it was able to implement an arrest warrant against the former governor of Nineveh, indicating that the implementation of the order came after obtaining the approval of the competent court to consider integrity cases in the governorate.
 

In its discussion of the details of the order execution process, the investigation department of the authority stated that its staff in the governorate were able to implement the arrest warrant issued against the former governor, which was issued on the basis of the provisions of Resolution (160 of 1983) by the Judicial Investigation Authority that was established according to Order 126 of 2020 for looking into Of major corruption cases.

The Integrity Commission had announced that it had formed a high-level investigation team; To reveal the fate of the funds that were withdrawn before the dismissal of the former governor of Nineveh, and the arrest of a number of officials and employees in the governorate office; On charges of embezzlement and squandering state funds, as the amounts seized from their priorities exceeded 76 billion dinars.   LINK

Samson:  Kurdish deputy: 320 billion dinars, the Kurdistan’s share for the remaining three months of the year

19th October, 2020

A Kurdish deputy revealed, on Monday, that 320 billion dinars are the share of the Kurdistan region for the remaining three months of the year.

The deputy for the Kurdistan Islamic Union, Jamal Cougar, said, "The region's share for the remaining three months of this year will be 320 billion dinars, which will be sent from Baghdad to the region, until the 2021 budget is approved."

Earlier, Minister of Finance Ali Allawi stressed the importance of the white reform paper to overcome challenges, indicating that it was diagnosed with a scientific and objective vision of the economic and financial problems that have accumulated over decades, which were not the result of the current stage due to wrong policies that were followed in the past.  LINK

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

Samson:  With a deduction of 18 percent ... Kurdistan begins distributing employees' salaries

18th October, 2020

The Ministry of Finance and Economy in the Kurdistan Regional Government announced, on Sunday, that it will distribute the salaries of last September to five ministries and the three presidencies on Monday (today), and will complete the distribution of salaries for all ministries and government departments in the region.

According to the salary distribution schedule, tomorrow, Monday, the salaries of September will be distributed to the ministries (municipalities, tourism, electricity, agriculture, water resources, culture, youth, reconstruction and housing).

According to the same schedule, Monday, the salaries of the same month will be distributed to the three presidencies (the regional presidency, the parliament presidency and the prime minister).

Thus, the distribution of the salaries of the month of September for all employees will end with a deduction of 18% of the salary, and the distribution of the salaries of retirees will follow.  LINK

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

Samson:  The "double shock" of Iraq loses half of its fiscal revenues

19th October, 2020

The International Monetary Fund stated, on Monday, that the oil-exporting countries were most affected as a result of the "double shock" resulting from the repercussions of the Corona virus, indicating that Iraq had lost 50 percent of its financial revenues.

The fund said in a report for the month of October, seen by Shafaq News, that "the oil-exporting countries are most affected as a result of the double shock," noting that "oil prices fell to their lowest levels in 20 years between March and April."

He added, "In light of the decline in oil prices and its production, the data indicate the collapse of oil revenues in Iraq during the first half of 2020 by 50%," noting that "in the short and medium term, excess supply and large stocks remain a source of existing concern while the decline continues." The demand is due to the decrease in air travel, despite the recovery of road transport. "

He pointed out that "the curves of future oil contracts indicate an expected rise in prices to reach 48 US dollars per barrel in the medium term compared to 41 dollars in 2020, but it remains 25% below its average level in 2019."

The International Monetary Fund for the Middle East and Central Asia expected a decline in GDP in the region by 4.1% in 2020, and also expected a contraction of the economy.  1.3% more than expected in April 2020.   LINK

KTFA. Pimpy and more Monday Afternoon 10-19-2020

KTFA:

Samson:  A prominent politician: The Iraqi delegation will discuss in London the "normalization" between Baghdad and Tel Aviv

19th October, 2020

The prominent Iraqi politician, close to the US administration, Mithal Al-Alusi revealed, on Monday, that the Iraqi government delegation discussed the issue of "normalization" between Baghdad and Tel Aviv during his European tour, which began yesterday, and includes Paris, Berlin, and London.

Al-Alusi said, to Shafaq News, "There are millions of Iraqis who write letters through various methods who want " normalization" between Baghdad and Israel. There is no Iraqi-Israeli problem in total. He indicated that "Iraq is in dire need of normalization of relations with Israel, and Iraq will not be a sovereign state unless it moves towards normalization with Israel before other Arab countries."

The prominent Iraqi politician added that "the visit of the Iraqi delegation to London will witness formal and informal meetings to discuss the issue of normalization."

Former Deputy Prime Minister Bahaa Al-Araji confirmed in a television interview, "Iraq is very prepared for the normalization of relations with Israel, and conditions are well-suited." He added that “it is possible that the normalization decision will come from the Najaf governorate, and not from the capital, Baghdad,” referring to the Shiite religious authorities. And the Iraqi government had previously confirmed, while commenting on the normalization of the relationship between Tel Aviv and Abu Dhabi, that "this is an internal affair for these countries."   LINK

Samson:  The UAE government ratifies the normalization treaty with Israel

19th October, 2020

The UAE Cabinet, headed by Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister and Ruler of Dubai, approved a decision to ratify the treaty of normalization and full diplomatic relations between the United Arab Emirates and Israel, and directed the initiation of constitutional procedures to issue a federal decree ratifying the agreement.

The Cabinet expressed its confidence that the agreement will form a tributary of peace and stability that supports the aspirations of the peoples of the region and reinforces their relentless pursuit of prosperity and progress as it paves the way towards strengthening economic, cultural and knowledge relations and taking advantage of the opportunities and potentials of the two sides to contribute to shaping a brighter future based on Understanding, mutual cooperation and mutual respect.

The Council pointed out that the agreement reflects the Emirati approach based on moderation and tolerance and giving priority to the culture of dialogue as an effective means of rapprochement and peace by establishing noble human principles and values, the foremost of which is understanding and coexistence.   LINK

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

Samson:  Bahrain and Israel .. 7 memoranda of understanding and an embassy in Manama

18th October, 2020
The Bahraini Minister of Foreign Affairs, Abdul Latif bin Rashid Al-Zayani, announced today, Sunday, the signing of memoranda of understanding between Bahrain and Israel in a number of fields that would establish a fruitful bilateral cooperation between the two parties.

In statements he made during his meeting with the Israeli National Security Adviser Meir bin Shabat, reported by the Bahrain News Agency, the Bahraini Minister of Foreign Affairs considered that "the declaration of support for peace with the State of Israel and the signing of memoranda of understanding today in a number of areas establish a fruitful bilateral cooperation between the Kingdom of Bahrain." And the state of Israel."

Al-Zayani noted that the signing of these memoranda "enables and contributes to consolidating the foundations of peace in the region, according to the visions of His Majesty King Hamad bin Isa Al Khalifa, the monarch of the country."

Al-Zayani said, in a joint press conference with US Secretary of the Treasury Stephen Mnuchin and Israeli National Security Adviser, Meir Bin Shabat, "Bahrain has signed an agreement in support of peace and opening diplomatic relations with Israel," adding, "Bahrain hopes that we are on the cusp of something very important for the region and all its people."  Al-Zayani stated that the Bahraini King’s vision aims to “push the peace process towards more positive horizons, starting with preserving the legitimate rights of the brotherly Palestinian people in accordance with international legitimacy resolutions.”

For his part, Israeli National Security Adviser Meir Bin Shabat stressed that "the success of this visit will positively affect the future of relations between the Kingdom of Bahrain and the State of Israel," in terms of joint coordination and contribution to strengthening the peace process. "We signed 7 bilateral agreements, and today is the first step in consolidating relations with Bahrain, and we opened the door for additional relations," the Israeli National Security Adviser said, adding, "We thank the officials in Bahrain for their hospitality and we are waiting impatiently for their visit to Israel."

For his part, US Secretary of the Treasury, Stephen Mnuchin, said, "This is a historic and great achievement today that started with a wonderful time. We flew from Israel on the first commercial flight and we hope that it will be the first in many trips." Ideas and this is a very important step for stability in the region."

On the level, the Israeli Broadcasting Corporation "Kan" reported today, Sunday, that Israel has sent an official request to Bahrain to open an embassy in the Kingdom.

Kan explained that the Israeli Foreign Minister, Gabi Ashkenazi, submitted a formal request to his Bahraini counterpart, Abdul Latif Al-Zayani, to open an Israeli embassy in Manama, in continuation of the peace treaty signed by the two countries   last September.

This comes after Bahrain and Israel signed in Manama, on Sunday, a "joint historical statement on establishing diplomatic relations, marking the beginning of a new and promising era in relations between the two countries," according to a statement issued by the Kingdom.   LINK

Courtesy of Dinar Guru

Jeff  ...we're still in a very good position right now...right now we're on a week to week status with this investment.  There's a very good chance that the rate change is going to catch us by surprise very simply because the level of news coming out...

Pimpy  Article:   "A director in the central bank sets his forecast for the dollar exchange rate within days and reveals a forthcoming measure"  ...the last week or so there's no doubt there's been a lot of chatter.  A lot of talks about the exchange rate.  It's exciting.  Sometimes it's good news.  Sometimes it doesn't look like good news...what we want to see is action.  Until they make some type of official announcement on the rate change just take everything with a grain of salt...  This [article] gives the appearance that they're getting ready to make the rate change...I don't want us to get overly excited until the bank has made an official announcement.   Right now they're just saying this is just talk...

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

Iraqi Dinar Update on more exchange rate rumors

Pimpy’s Investment Chat:  Oct 19, 2020

https://youtu.be/v37fCxTO0_I?t=2

Iraqi Dinar News 10/19/20 - more peace in the middle east

Pimpy’s Investment Chat:  Oct 19, 2020

https://youtu.be/05uikkYnaz8?t=1

KTFA Members "Sunday News" 10-18-2020

KTFA:

DELTA:  GREAT ARTICLE FROM THE HOURSE'S MOUTH...............

Samson:  The Central Bank comments on the comments to reduce the price of the dinar against the dollar

18th October, 2020

The Central Bank of Iraq confirms that the statements that have spread recently regarding (lowering the exchange rate of the Iraqi dinar against the dollar) represent the viewpoint of those who stated it and do not represent the official position of the Central Bank, and this was accompanied by a number of rumors released by speculators, which affected the price (temporarily).

This bank declares that the exchange rate is fixed and unchanged, and that its monetary policy is clear and transparent. Note that its foreign currency reserves are "very good" according to all international indicators, in a way that enables it to overcome the current crisis that the country is going through.

This bank hopes that the media will rely exclusively on the sources of the Central Bank in this regard.

 The Central Bank of Iraq
Media Office
October 18, 2020    LINK

Samson:  Kurdistan Region shall suspend official working hours for one day next week

18th October, 2020
According to the official holidays schedule for the Kurdistan Regional Government, official working hours in government departments and institutions will be suspended on the 29th of this October.

Thursday 10/29/2020 coincides with the birth of the Prophet of Islam, Muhammad bin Abdullah.

The governorates of Kurdistan Region decided to ban the celebration of the Prophet’s birthday this year due to the outbreak of the Corona epidemic.

The Prophet’s birthday is the Prophet’s birthday, which was on Rabi` al-Awwal 12 or Rabi` al-Awwal 17, according to the Shiite perspective. As Muslims celebrate it every year in some Islamic countries not as a holiday but as a joy for the birth of their Prophet.

The regions and cities of the Kurdistan Region are witnessing all special celebrations on this occasion, by setting up majlis in which he sang poems praising the Prophet, and in which he received lessons from his biography, mentioned his virtues and offered food and sweets.  LINK

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

Samson:  Banks Brace for ‘Big Bang’ Switch on $80 Trillion Worth of Swaps
15th October 2020

It’s being called the “big bang,” and it has derivatives traders on high alert.

In a critical development in the global shift away from old benchmarks that was triggered by Libor’s shortcomings, interest-rate swaps on more than $80 trillion in notional debt will transition this weekend to a new rate for determining their value.

While the switch to the secured overnight financing rate, or SOFR, is expected to boost longer-term liquidity in the new benchmark, it also is fueling concerns about unruly price action because it is expected to trigger the sale of swaps on tens of billions of dollars of debt. “The big bang is one of the most important steps in the Libor transition,” said Marcus Burnett, director of SOFR Academy, an education technology firm whose clients include banks and asset managers. “We expect rates desks from the largest banks in New York to be participating.”

The reset, which will see SOFR replace the effective federal funds rate in calculations that value swaps, is part of a push to make SOFR a standard U.S. reference rate in debt and derivatives markets. SOFR is intended to replace dollar Libor, which still underpins hundreds of trillions of dollars of assets such as mortgages in the U.S. and syndicated loans in Asia. The big bang follows a smaller-scale pivot in Europe this July, a less-complicated switch that occurred without much impact on the market.

Interest rate swaps allow two parties to trade one stream of payments for another, over a set period of time. The most common variety, known as a vanilla swap, involves exchanging payments from a fixed rate for payments from an adjustable rate that is based on Libor or some other reference rate. Another kind, known as a basis swap, involves two adjustable rates.

While SOFR has struggled to gain traction since its introduction in 2018, analysts say the upcoming big bang has already triggered a shift toward more trading in SOFR-linked swaps. This could help pave the way for a curve that reflects expectations for where the rate will be in the future, addressing one of the new benchmark’s key weaknesses. The big bang “will have a very, very good impact on liquidity,” said Jason Granet, chief Libor transition officer at Goldman Sachs Group Inc.

Compensation

Still, in the immediate future there will be turbulence in pricing. Clearing houses are planning to effectively neutralize the changes in swap values caused by the big bang, and traders will see their positions automatically adjusted. LCH Ltd. and CME Group Inc. are preparing to distribute compensation from clients whose position values go up to those who see them decline.

LCH will facilitate payment of hundreds of millions of dollars in cash to cover lost value, and at least tens of billions of dollars in basis swaps to compensate for risk, said David Horner, head of risk at SwapClear, which is part of LCH. However, some firms do not use basis swaps to hedge their discount-rate risk or are otherwise incapable of keeping them on their books, so they are expected to sell them. This Friday LCH will hold auctions in which 18 banks can close out $25 billion in unwanted basis swaps.

Buyers, ideally, would snap them up either as hedges against risk or for their own value. But the approach is largely untested since basis swaps were not distributed in the European version of the big bang.“For about six months our members and clients have been able to look on their screens and see a forecast for the compensating cash payments and compensating swaps they will receive, so they are familiar with what’s about to happen,” said Horner. “It’s important for the market that it runs smoothly.”

CME will hold a similar auction on Monday. Clients have agreed to a maximum loss, said Sunil Cutinho, president of CME Clearing, and “if their positions cannot be auctioned off then they are fully protected and they can use their own private means to dispose of their positions.” However, there are concerns about price swings in the market amid a surge in supply as some banks ditch basis swaps they received as compensation.

The big question is how well the auctions go. Clearing houses are not guaranteeing the minimum prices for the basis swaps, which could fall below the maximum that firms are prepared to tolerate, said Joshua Younger, a strategist at JPMorgan Chase & Co. “Many would then likely unwind them in the open market and the price action could get very disorderly,” he said.

Firms need to understand they are facing more risk from this change first before they eventually get less risk, said Pieter Van Vredenburch, a principal at Market Alpha Advisors and previously a member of the Alternative Reference Rates Committee, which is guiding the U.S. Libor transition, when he worked for HSBC Holdings Plc in 2016.

“The big banks are very prepared for the big bang,” said Van Vredenburch. “But do I think the smaller banks are ready for this? Not even close.” When it comes to the overall switch to SOFR, he said, “there are so many nuances to the transition and the devil is in the details. There is nothing simple in all this.”LINK

Samson:  Consultant: The Reasons For The Rise In The Dollar Are Contrived To Embarrass The New Governor Over The Greed Of Corrupt Money

18th October 2020

The consultant of Islamic banks, d. Bashar Qaddouri said the reasons for the rise in the dollar are "fabricated, not real."

Kaddouri said in a statement to (Al-Mustaqilla) that "the exchange rate is fixed and stable in the Central Bank. What happened is that the black market outside the authority of the Central Bank is the one who caused this crisis in the phantom rise."

He pointed out that "the rise was behind it by corrupt money and some speculators who do not want the exchange rate to stabilize, for reasons such as undermining the confidence of citizens in the central bank, as well as embarrassing the new governor before the government, especially after a wave of objections by some corrupt politicians with banking and commercial interests."  LINK

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

Samson:  Headed by Al-Kazemi ... a high-ranking government delegation is on a tour to France, Germany and Britain

18th October, 2020

The Central Bank of Iraq announced, on Sunday, that Governor Mustafa Ghaleb Mechif will participate in the European tour of the Prime Minister, Mustafa Al-Kazemi, to discuss banking relations and financial investment between Iraq and European countries.

The bank said in a statement that Mawazine News received a copy of, that "the governor of the Central Bank of Iraq, Mustafa Ghaleb, will participate, accompanied by a high-level government delegation headed by the Prime Minister, this Sunday, in a visit to France, Germany and the United Kingdom."

The statement added that "the governor will meet during the four-day visit with counterparts to discuss a number of common issues, especially "raising the name of Iraq from the European Union's high-risk list as well as discussing the development of banking relations and financial investment between Iraq and these countries because of the economic weight they constitute in Europe and the World.”LINK

Bravo13:  Looks like the big dogs are headed to Europe for a pow wow to clear there name and shore up some business I presume. Looks like there are still some loose ends to tie up yet, I’m assuming this is next Sunday not today ? If so this won’t be done before the riots start on the 25th which I was hoping would be avoided, we will see. IMO

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

Samson:  Al-Kazemi will meet Merkel next Tuesday

10/18/2020 13:51:39

 The Prime Minister, Mustafa Al-Kazemi, will meet with German Chancellor Angela Merkel in the capital, Berlin, on Tuesday.

The German embassy in Baghdad said that Al-Kazemi will meet Merkel in Berlin next Tuesday, noting that “the meeting will deal with bilateral relations, economic cooperation, combating the Corona epidemic, the war against ISIS, and international and regional files of common interest.”

An informed source revealed the date of the start of the European tour of the President Minister Mustafa Kazmi, this week and the start of the French capital Paris to meet with French President Emmanuel shifty at the Elysee Palace at the official invitation. The source told {Euphrates News} that "talks Kazmi and Shifty will focus on the development of bilateral relations between the two countries and increasing joint cooperation in various fields They include the security and military forces, in addition to discussing developments in the region.” 

After Paris, the prime minister will travel to Germany and then Britain. And Foreign Minister Fuad Hussein said last month that "among the topics discussed in the prime minister's visit to France is the submission of an Iraqi request to purchase French weapons, according to the needs of the Iraqi army." On September 2, French President Emmanuel Macron visited the capital, Baghdad, where he met the three presidencies and met with the President of the Kurdistan region, Nechirvan Barzani, in Baghdad. LI

KTFA Members "News and Views" Saturday PM 10-17-2020

KTFA:

Samson:  Deputy explains the reasons for the high price of the dollar against the dinar

16th October, 2020

On Friday, a member of the Parliamentary Finance Committee, Naji Al-Saeedi, revealed the reasons behind the high exchange rate of the dollar against the dinar in the local market.

Al-Saeedi said in an interview with Alsumaria News, "Any country that is exposed to a financial policy crisis, its monetary policy will be affected in turn," indicating that "Iraq Today, it operates according to a fixed exchange rate system, and it is very exaggerated and supports the external product, not the local."

Al-Saeedi added, "The shift from the fixed exchange rate to the creeping exchange rate, especially in periods of financial instability, will have a very negative impact on the expectations side, as if the price is raised to a point or two, it may affect four or five points in the market and this is for him." Negative effects on low-income people and the simple citizen," stressing that "the use of inflationary financing or the new monetary issuance as the government borrowed treasury bonds from the central bank, the latter did not use the existing hard currency reserves, but rather used the new cash issue."

He pointed out that "this measure of the central bank raised the monetary mass in Iraq from 56 trillion dinars to approximately 80 or less trillion dinars and this increase leads to monetary inflation and continuing with it leads to an increase in the exchange rate of the dollar towards the Iraqi dinar and this is a very natural thing in monetary policy, as the new monetary issue leads to the exchange rate of the dollar, given that The government did not use real resources to finance the deficit, but rather inflationary resources.

”Al-Saeidy stressed, “This procedure is similar to what the previous regime used to do, and it is contrary to Central Bank Law No. 56 of 2004 in its Articles 32 and 28.”   LINK

DeepWoodz:  MilitiaMan said.....So it appears they have issued bonds with a new cash issue. That would seem to be at a new rate too. As they were not very successful in selling bonds (if I recall) in the past while at a program rate. Again this is an example of using more of a negative slant with verbiage while telling us the positive. If they sold Bonds with a new cash issue and not at a program rate, then they'll be exposing that new cash issue in short order... imo.. ~ MM

 Thank you as always for an easy explanation MilitiaMan we were wondering if this article meant what it said! 

IMO And we all may remember a previous article mentioning this concept by how Central Banks use the situation here from the article as a MONETARY TOOL: 

"Negative effects on low-income people and the simple citizen," stressing that "the use of inflationary financing or the new monetary issuance as the government borrowed treasury bonds from the central bank, the latter did not use the existing hard currency reserves, but rather used the new cash issue. "

 A break down of this idea/monetary tool helped us to understand this concept expressed in the article for sure: 

1.  USE OF INFLATIONARY FINANCING - IS MEANING A NEW MONETARY ISSUANCE

2.  GOVERNMENT BORROWED TREASURY BONDS FROM THEIR CENTRAL BANK 

3.  NOT THE USAGE OF THEIR CURRENCY RESERVES 

SO:  THERE WILL BE A NEW CASH ISSUE SOON towards the citizens and that requires a value in some purchasing power ..... IMO  

—————————————————————

Just wanted to add some thoughts to MM’s....

 “and it is very exaggerated and supports the external product, not the local.”

We know that the higher the exchange rate, the cheaper imports into Iraq will be for the citizens, which is great because they import most everything.

“as the new monetary issue leads to the exchange rate of the dollar”

The new monetary issue being the NSCN’s (LD’s) that must have the new rate. Frank said there was a certain number of citizens that would have to see the pics or actual notes before they would release them. FA 333 looks like the perfect tool to get the citizens in to the bank by finally paying salaries. There will be income tax added. Come get paid and see your new currency with the new rate! Imo

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

Samson:  Baghdad transferred 2.4 trillion dinars to the Kurdistan region

17th October, 2020

The central government in Baghdad transferred 2.4 trillion dinars to the Kurdistan region for payment in employee salaries and social care

The Kurdistan Regional Government did not pay any amount to the capital, Baghdad, during the current year and last year, as the budget for the year 2019, which is still in effect until now, stipulates that the region will pay daily to Baghdad 250 thousand barrels of oil produced in Kurdistan in addition to 50% of the revenues from the outlets. Borderline

According to the monthly report, issued by the Ministry of Finance, for last August, the Baghdad government has sent an amount of 2,081 trillion dinars from the beginning of the year until last August, as salaries for the region’s employees and social care

A few days ago, Baghdad sent an amount of 350 billion dinars, so the total number sent since the beginning of the year until now is 2.4 trillion dinars

The relationship between Baghdad and Erbil has been witnessing a great tension that extends since 2012 when Erbil made an agreement with international oil companies during the years 2005-2010 and oil production in 2012 outside Baghdad's control and exported it to countries around the world

Some information indicates that 85% of Kurdish oil is exported to Israel, and the rest goes to Turkey and several other countries. The Kurdish oil export process takes place through the Turkish port of Ceyhan

LINK

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

Samson:  Israeli media: Israel and Bahrain will sign an interim diplomatic agreement

17th October, 2020
Israeli media reported on Saturday that Israel and Bahrain are expected to sign, on Sunday, a joint interim agreement on "establishing peace and diplomatic relations."

According to the Israeli "Wahh" website, Israeli and Bahraini officials will sign the declaration in Manama, under the auspices of the US Secretary of Finance, Steve Mnuchin, and the White House envoy, Avi Berkovitch, and among what the declaration will cover is "establishing full diplomatic relations and opening embassies."

Israeli officials pointed out that "the joint declaration is on two pages and will be a kind of interim agreement. It will also be phased between the declaration of normalization that was signed at the White House on September 15, and the signing of a comprehensive agreement."

According to the Israeli website, "It will be written in the joint declaration that the two parties will not carry out hostile acts against each other, and will work to prevent hostile acts by a third party," and the declaration will stress that "both parties are committed to coexistence and a culture of peace." Civil aviation, tourism, trade, science and technology, environmental quality, communications and mail, health, agriculture, water, energy and judicial cooperation.”

According to the site, “the representatives of Bahrain are the ones who requested to sign at this stage an interim agreement in the form of a joint declaration, Not a complete deal. The reason for this is internal criticism in the Kingdom against normalization with Israel and the desire to progress gradually more than the Emirates.” The site pointed out that Israel agreed to the Bahraini request. 

Representatives of the UAE, Bahrain and Israel signed a peace agreement in mid-September, under the auspices of US President Donald Trump.  LINK

Today the US Treasury Secretary heads a delegation on a visit to Israel, Bahrain and the UAE  LINK

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

GodLover:  it is the citizen's who are expecting to protest on the 25th, which is their rights to be heard & their government to comply to their demands imo. I give the protests 100% likely to happen on or around the 25th & hopefully this will encourage the GOI to produce more than just MR talking....something the citizen's can see for themselves. imo  

Ryan1216:  History repeats itself. I didn't think the citizens would have to protest again to bring forth the MR. Well I didn't think we would be into October and the new rate still hasn't come out. Kazemi is doing all of the right things. Let's pray this ends now and we all can move on from this investment

 **********

Samson: Supporters of the crowd demonstrate in front of the headquarters of the Iraqi president

17th October, 2020

Dozens of supporters of the Popular Mobilization Forces gathered on Saturday in front of the headquarters of the Iraqi President Barham Salih in central Baghdad to protest against the statements of a Kurdish politician.

Shafaq News correspondent reported that dozens of supporters and fighters of the crowd gathered in the two floors square, near the headquarters of the Iraqi President Barham Salih. He added that this gathering came in protest against a statement by the leader of the Kurdistan Democratic Party, Hoshyar Zebari. 

This comes a few hours after dozens of popular crowd supporters stormed the headquarters of the fifth branch of the Kurdistan Democratic Party, located in the Karrada district in central Baghdad, and set fire to the headquarters and the Kurdish flag. In Kirkuk, fighters and leaders of the Popular Mobilization Forces protested.

These protest rallies came in response to repeated calls from accounts on social media platforms affiliated with factions in the crowd close to Iran, including "Rubu’allah" and "Sabreen News".

Zebari had called on the Iraqi government, during a television interview, recently, to clean up the Green Zone from "militia militia" factions, due to repeated attacks on diplomatic missions.  LINK

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

Samson: Parliamentary Finance: Every Iraqi child is born in debt of $ 3,000

17th October, 2020

The reporter of the Parliamentary Finance Committee, Ahmed Al-Saffar, revealed, on Saturday, the size of the debts on Iraq after the new borrowing if approved by Parliament, while noting that the Iraqi child's debt when he is born will be 3000 dollars

Al-Saffar said in a televised interview followed by Al-Iqtisad News, “Iraq owed 40 trillion dinars internal and 25 billion dollars abroad before the vote on the borrowing law, and after the approval of the borrowing law of 15 trillion dinars and 5 billion dollars, Iraq became owed 55 trillion dinars and 30 billion Dollars

He added, "If the new borrowing law is approved, 41 trillion dinars, the total debt will be 96 trillion dinars and $ 30 billion is debt owed by the government, with the exception of more than $ 40 billion. This is the Gulf debt of the Iran war

He continued, "If we divide these debts on the population, it will be the debt of every individual and the Iraqi child when 3000 dollars are born abroad and internally  LINK

KTFA Members "News and Views" Friday Afternoon 10-16-2020

KTFA:

Ross:  If they RI at 1:1 and if they stay at that rate for say several weeks without a float most people will exchange their IQD just to get off this roller coaster ride.  This would save Iraq a ton of money. What do you think ?

DCDriver:  IMO it’s about demand once it goes international. Just like the dollar has gains and losses so should the dinar IMO

StephenMac63:  If they RI at 1 to 1.... the iqd is already in use inside of the country, what they are looking for is a better value than 1190 it's sitting at now. CBI said the value will be 1 QD will equal 1 USD. That's for the inside of the country.

The Reinstatement.....thats for Iraq to have bragging rights to the world. This will be seen on Forex, CBI website, and at your local bank.

If Iraq was reintroduced to the world at a rate of 1 USD per 1 IQD, what would happen? Yes, many of the Dinarians will jump off the train and head-on with their lives. CBI is expecting that in any case. But more importantly, there were several laws that were put into place....and this allowed them to be International....of which has more value than being under sanctions, therefore, it's highly probable that we won't ever see 1 to 1. Iraq will always see, in-country, that 1 USD is 1 IQD. But it's the value that counts.

Once it's International and if it came out at 1 to 1, Forex would get a hold of this, and the currency market would be in a flurry. The only reason Forex would get a hold of it is because it would be international. With that labeling comes Laws, that offers protection to both Iraq and to International investors. As an International Investor, you would want International protection....and this is offered with the laws.

What kind of International Investor would purchase large amounts of IQD once it's International?

Hedge Fund Firms.....if they see that the IQD is at 1 USD and comes with legal protection, you can bet they would try and buy every single IQD possible because once it hit $4 per IQD (speculative), they would have made 3 dollars profit on a 1 dollar investment.

It is, for this reason, I do not see 1 IQD be 1 USD on Forex. I expect more. Yes, it will fluctuate at some point but everyone has to decide how long they want to be in it for. Liberal Hedge Fund firms will take a chance on getting involved with something speculative in hopes of striking it rich. Conservative firms will generally stick with a tried and true process, but they don't make as much, per se.

My guess, with the number of people that hold the IQD at this moment, 80+/- percent will exchange at a dollar( if it's even available at that upon entering the International arena)....and it wont take two weeks, probably more like 1 week. OK, more like 4 days max. The other 20 percent will probably exchange a note, set themselves up, pay off bills and start their plan while they wait and watch....just a guess.

Imo, of course SM63

Ross:  Thanks you said it so much better than I could. I tend to agree with you 100%  I too would be a 20%er. IMO most people who hold dinars are not aware of the excellent teaching we get at KTFA and would just be happy to just move on. We may not know the outcome of the election for awhile but if the dems (God forbid) get in they will tax us heavily to finance their programs.  Remember in their class warfare we would be considered the evil "rich".  However even if Iraq comes out at a fixed 1:1 for a period I think it will allowed to float well before EOY.  If it comes out much higher as we hope then this conversation is irrelevant but fun.  Now if someone would just push the button to get the ball rolling.

Samson:  The Iranian currency is undergoing the biggest collapse

16th October, 2020
The price of the dollar exceeded the barrier of 32,000 Iranian tomans, setting a record.

Today, gold markets also witnessed an increase after a limited decline, as the markets recorded the price of an ounce of gold at 16 million and 200 thousand tomans. 

And the head of the Central Bank, Abdel Nasser Hemmati, had expected that Iran's markets would witness increased pressure in the coming weeks, ahead of the highly sensitive US elections.  LINK

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

Samson:  Sudan decides on the normalization of relations with Israel

16th October, 2020

Sudan decided to proceed with the normalization of relations with Israel after an American deadline that gives officials in Khartoum 24 hours to do so in exchange for removing the country from the list of countries sponsoring terrorism, according to what a source close to the Sudanese leadership told i24News. The news station reported that the decision was made after heated discussions on Wednesday.

According to the network's report, the warning included an offer to remove Sudan from the list of countries sponsoring terrorism, work to remove it from the list of travel ban countries, work to increase aid, and commit to facilitating private investment, arranging an investment conference in the country, and exempting Khartoum from billions of dollars in debt to the United States. Among other benefits. And the Sudanese Prime Minister, Abdullah Hamdok, last September, said that the country does not want to link its removal from the list of terrorism, which hinders obtaining foreign funding for the country's economy, with the normalization of relations with Israel. Sudan’s leaders did not rule out establishing relations with Israel as part of the US offer to provide economic aid worth $ 300 million, in addition to $ 3 billion in debt relief and investments.

Earlier this month, the vice president of the Sudanese Sovereignty Council, General Mohamed Hamdan Dagalo, told Sudanese TV 24 station that his country attaches great importance to establishing relations with Israel so that it can be removed from the US terrorism list. Sudan does not have relations with Israel, which on September 15 signed two historic agreements to normalize relations with the UAE and Bahrain. And US sanctions were imposed on Sudan in 1993 over the background of its harboring of al-Qaeda leader Osama bin Laden. During the rule of Omar al-Bashir, Sudan received on its lands extremist Islamists, especially bin Laden, who lived there from 1993 to 1996 before moving to Afghanistan.

Sudan paid a price for that when the United States decided to impose sanctions on it, beginning in 1990, and included it on its blacklist of countries accused of "sponsoring terrorism."    LINK

DeepWoodz:  I may be naive but freakin awesome! Imo

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

Samson:  Deputy explains the reasons for the high price of the dollar against the dinar

16th October, 2020

On Friday, a member of the Parliamentary Finance Committee, Naji Al-Saeedi, revealed the reasons behind the high exchange rate of the dollar against the dinar in the local market.

Al-Saeedi said in an interview with Alsumaria News, "Any country that is exposed to a financial policy crisis, its monetary policy will be affected in turn," indicating that "Iraq Today, it operates according to a fixed exchange rate system, and it is very exaggerated and supports the external product, not the local."

Al-Saeedi added, "The shift from the fixed exchange rate to the creeping exchange rate, especially in periods of financial instability, will have a very negative impact on the expectations side, as if the price is raised to a point or two, it may affect four or five points in the market and this is for him."

Negative effects on low-income people and the simple citizen," stressing that "the use of inflationary financing or the new monetary issuance as the government borrowed treasury bonds from the central bank, the latter did not use the existing hard currency reserves, but rather used the new cash issue."

Iobey777:  This is another HUGE article! Speaks volumes! did they just tell us they are using the NSCN’s??(Lower Denominations)  WOW!!  

MilitiaMan:  So it appears they have issued bonds with a new cash issue. That would seem to be at a new rate too. As they were not very successful in selling bonds (if I recall) in the past while at a program rate. Again this is an example of using more of a negative slant with verbiage while telling us the positive. If they sold Bonds with a new cash issue and not at a program rate, then they'll be exposing that new cash issue in short order... imo.. ~ MM

Samson:  The government intends to apply income tax to salaries and allowances, starting from the current month

16th October, 2020

Informed political sources revealed that the government intends to issue a decision to apply the income tax law to the total salary since October

The Ministry of Finance imposes an income tax of 3% to 15% on the nominal salary of employees

The sources, who preferred not to be named, told Al-Iqtisad News that the government is directing a major crisis in providing liquidity to pay the salaries of employees, especially this month, noting that the salaries of this month are witnessing a large deficit after the government has exhausted internal loans and that oil revenues are not Enough for that

She noted that the application of the Income Tax Law on the total salary, not just the nominal salary, will give the government an amount of 600 billion dinars

The government applies an income tax from one dinar to 500,000 dinars at a rate of 3%, and if the salary is more than 500,000 to one million dinars, then the income tax is 5%, and if it is more than a million to 2 million, then 10% is applied, and if it is more than 2 million dinars, it applies. 15%  LINK

Itsmedt:  Don’t walk past this one. Income tax + a program rate= major civil unrest!  

MilitiaMan:  Exactly, there are many things showing up that equate to more pressure. This would be one of them.. Putting taxes on them without Purchasing Power? That will not fly.. imo !~ MM