KTFA Members "News and Views" Saturday 11-28-2020

KTFA:

Ross:  It seems like most of the time the Cabinet and Parliament are at odds.  Now Parliament is urging the "full" implementation of the White Papers (including the adjustment requested by the BIS?) and "Parliamentary Finance issues a package of reforms that includes imposing a value-added tax and reviewing the dollar exchange rate" and further "the reform paper also focused on the Ministry of Finance, in coordination with the Central Bank, to issue an electronic dinar for the purpose of collecting government revenues and deserved tags, reviewing the exchange rate against the dollar, deleting zeros ..."

 IMO the cat is out of the bag and Parliamentary Finance wants to get in on the credit instead being the opposition. When the 2021 Budget is discussed next Tuesday surely the rate will be exposed to the Cabinet members in attendance.

Wondering how long all this can be kept a secret from the populace ?  Also, normally one would expect the RI/RV to not be disclosed until the last minute to avoid a rush in IQD acquisitions by whales but nothing seems normal re Iraq.  Hopefully this moves the goal post somewhat closer.

Don961:  Iraq’s stolen funds .. A report speaks about the tasks of an international coalition to recover $ 150 billion

2020/11/26 21:00  Baghdad Today - Follow-up 

An American website published a report in which it talked about the tasks of the newly established International Financial Alliance to help Iraq financially, and it is expected that the coalition will help Iraq recover 150 billion dollars of money stolen from the country since 2003.

Al-Monitor stated, "Prime Minister Mustafa Al-Kazemi, while he was with a number of ministers on a visit to London, established the International Financial Alliance and named it the Economic Contact Group for Iraq on October 22," noting that the alliance "consists of the Group of Seven countries and a fund The International Monetary Fund (IMF), the World Bank, the European Bank for Reconstruction and Development, the Iraqi Ministry of Finance, the Central Bank of Iraq, and the Financial Committee.

He explained, "The coalition meets every three months to monitor economic progress in Iraq, and will present a roadmap to support priorities in terms of reforms, mobilize international support and benefit from international experiences to enhance economic stability and add vital changes to achieve economic growth. The coalition is scheduled to work for three years." .

The American site pointed out, "Parliament, after months of conflict with the government, approved on the twelfth of November the borrowing law that allows Iraq to borrow 12 trillion Iraqi dinars ($ 10 billion), which will enable Iraq to pay its obligations for three months only to pay Salaries of government employees. "

And he continued that "Iraq is facing a severe financial crisis, after the drop in oil prices due to the Corona pandemic, and according to the 2020 budget, Iraq needs $ 62 billion, of which $ 45.8 billion is for government employee salaries, pensions and social care, while Iraq needs $ 6.6 billion to pay "The internal debts and European bonds. The remaining amount will be allocated to foreign oil companies, support programs also known as the ration card, electricity imports, and to cover the expenses of some ministries."

The American website report quoted Finance Minister Ali Allawi as saying to Al-Iraqiya TV on November 4, that "the coalition will provide experts in managing economic sectors, and they will act as advisors to the government, with a focus mainly on reforming the economy and improving the administrative performance of the public and private sectors." He pointed out that "Iraq is going through a difficult economic time; because the financial resources of the state have become out of control and reforms must be achieved."

The Minister of Finance added, "In the event that the current situation continues, this will open the way for political and security unrest," noting that "it is in the interest of many countries to help Iraq and put its economy on the right track, especially since the country is a promising market for Western investment, and the coalition will help Iraq to Recovering the money that was stolen before and after 2003, which amounted to more than $ 150 billion since the emergence of the current political establishment.

"Al-Monitor" quoted Ahmad Haji Rashid, a member of the Parliamentary Finance Committee, which is part of the newly formed financial alliance, as saying, "The International Financial Alliance agreed to a request to exempt Iraq from the obligations of the OPEC Plus agreement."

Al-Hajj added that “consultations between countries will start within days,” noting that the International Financial Alliance “will provide consultations without loans because most countries of the world are suffering from a financial crisis due to the Coronavirus pandemic,” indicating that “Iraq's credit rating is (B-) and it is It does not qualify it to obtain foreign loans, "noting at the same time that" the country has resorted to foreign expertise, because the solutions that Iraqi academics proposed to deal with the crisis were difficult to implement. "

The report pointed out that "Iraq's debts amounted to $ 133.3 billion in September, and constitutes 80% of the gross domestic product, which exceeds the red line by 60% to the gross domestic product, while the Al-Kazemi government issued a white paper for economic reforms that includes a vision to solve problems in the non And reducing dependence on oil by 93% during the next three years, and activating the role of the private sector.

The report quoted Ahmed Al-Tabakjali, a professor at the American University in Sulaymaniyah, as saying, "The expenditures are large and cannot be covered from budget revenues," and indicated that the white paper for economic reform shows the international community that Iraq is serious about reforming its economic and financial situation.

He stressed that "the international community does not want to see modest reforms as was the case in the past," noting that "the new international alliance may push the International Monetary Fund to sign a new loan agreement with Iraq, including reforms and loans, and this would give the country the opportunity." To obtain loans from foreign countries with a guarantee from the International Monetary Fund. "

"The coalition will help Iraq in the areas of technology and governance, and help it implement measures to control non-oil revenues, such as tax revenues and border crossings," al-Tabakjali indicated, explaining that "Iraq cannot bear additional debts without the new alliance."

"The establishment of this alliance means that the advisory body in the Council of Ministers is ineffective, and that the economic staff in the Ministries of Finance and Planning have failed to find effective solutions to the current financial crisis," Al-Monitor quoted Nabil Al-Marsoumi, a professor of economics at Basra University.

Al-Marsoumi added, "In the words of the government, it is obligated to contract with foreign parties to obtain effective solutions, despite the government's issuance of the white paper, which is important to add changes to the economic path the country has taken."

And it was announced in London, during last October, the establishment of an international financial alliance that includes 7 foreign and Iraqi financial institutions, to provide advice to the Iraqi government to confront 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.

According to the British Foreign Office, the financial alliance will be called the "Economic Contact Group" and its goal is to stimulate international support for the urgent economic reform program, which will last for 3 years and cost 6 million pounds sterling.

According to a statement by the British Foreign Office, "the financial alliance provides global expertise to achieve economic growth and provide international expertise from the public and private sectors to enhance economic stability in Iraq and introduce vital economic changes in order to advance growth."

LINK

DeepWoodz:  Imo...this may be the plan to replace the the reserves. 

“the coalition will help Iraq to Recovering the money that was stolen“

“more than $ 150 billion“

Also, more oil exports coming. “exempt Iraq from the obligations of the OPEC Plus agreement.“

Also,“British Foreign Office, the financial alliance will be called the "Economic Contact Group" To the tune of 6 million pounds. How many dinars will that buy today?

Don961:  "Arab Monetary" directs central banks to support the economy after "Corona"

Saturday 28 November 2020  Abu Dhabi: Follow up  

The Arab Monetary Fund has issued “Guiding Principles on Central Banks' Strategies to Support Economic Recovery in the Post-Coronavirus Pandemic”.

The guiding principles included a set of recommendations related to strengthening the crisis management system, which emphasizes the importance of early preparation for the Crisis Management Committee or the Financial Stability Committee within the central bank, and early preparation for the post-crisis phase, through developing a strategy for the post-crisis phase.

 Current.

It was emphasized that the economic support measures will continue for an appropriate period in the recovery phase, to ensure the flow of liquidity into the economy, as the success of the measures is affected by the timing of their easing or withdrawal, as failure to withdraw support packages early may lead to a decline in the volume of credit required to support the corporate and household sectors. Whereas, late withdrawal may increase systemic risks in the financial sector.

She stressed the need for coordination and cooperation between the monetary and fiscal policies and the macroprudential policy, and the importance of the gradual application of macroprudential policy tools that have been eased or liberalized during the current crisis, and the continued adoption of an easing monetary policy to consolidate the economic recovery, which means delaying raising interest rates on monetary policy tools. For an appropriate period of time.

The principles indicated that central banks would continue to adopt government financing programs, led by these banks to support productive economic activities, with appropriate interest rates and terms, calling for setting appropriate frameworks for banks to deal with their good clients, whose cash flows were affected by the Corona pandemic, and to study solutions related to mitigating the impact. Negative in their creditworthiness, provided that this is taken into account in their credit reports.  LINK  

DeepWoodz:  Imo...so this brings to mind a QUESTION I have asked previously on salaries and would be similar for loans.Wouldn’t there need to be financial “mechanisms” in place for both of these topics? Once they decide to change the rate, all manner of accounts will have to be re-calculated according to the new rate, especially since it is a RV/RI? I think easily done with electronic accounts. 

In my mind, if this is true, someone who borrowed a million dinars(valued at 1000 dollars) would after the rate change only owe 1000 dinars. So the math would have to change internally at the same time as the rate. 

Equally as important, and something Delta mentions frequently as a pattern, are salaries. Of which there are articles about changing the salary scale but aren’t really clear as to why. 

Couple salaries with the fact they are paying them electronically and forcing everyone to have an account in order to receive them. (Or Ki cards I think in the case of retirees and martyrs) This in my mind, provides a means to instantly change amounts in accounts and salaries instantly as well. 

I agree with Delta that they can’t simply pay people and then change the rate, or vice versa for that matter, unless there is something to control the financials. 

MilitiaMan and Don961 "Exchange Rate of the Dinar Against the Dollar" 11-28-2020

KTFA:

Don961:  Parliamentary Finance issues a package of reforms that includes imposing a value-added tax and reviewing the dollar exchange rate

11/28/2020

Economy News - Baghdad:

The Parliamentary Finance Committee issued proposals to address the financial crisis in Iraq, which included reviewing the exchange rate of the dollar against the dinar, establishing a national telecommunications company and imposing a value-added tax.

The reforms presented by Parliamentary Finance included, from three axes, the first entitled Maximizing Revenues and Rationalizing Expenditures and included the immediate activation of compulsory collection of services provided to government, commercial, industrial, agricultural and household institutions, such as electricity, water, sewage, landlines and their deduction from grants and salaries, in addition to reviewing crude oil prices The provider of the refineries, and the unutilized government assets such as real estate and land flow through selling them by public auction, imposing a value-added tax of 12%, and obligating all institutions to send the Ministry of Finance's share of the total revenues up to date.

It also included stopping the work of embassies and attachés in countries where Iraq does not have any diplomatic, commercial or cultural exchange, negotiating to postpone the dues of oil companies or paying them in kind outside the OPEC quota, and allowing the export of gravel and sand and the investment of mineral resources such as phosphates, sulfur and uranium.

On taxes, it included the formulation of the tax withholding ladder by supporting the low-income segments by raising the minimum tax level, adjusting the tax price of the people concerned to a price close to the price of neighboring countries, and imposing annual taxes on all cars according to their type.

As for the second axis related to reforming the financial and monetary policies, it included the imposition of comprehensive insurance on cars, expatriates, cars, fuel stations, imported materials, companies, crude oil, building permits, residential units, etc. Rationing, medicines, water stations, and the educational and educational process only.

The reform paper also focused on the Ministry of Finance, in coordination with the Central Bank, to issue an electronic dinar for the purpose of collecting government revenues and deserved tags, reviewing the exchange rate against the dollar, deleting zeros, freeing banks from the hands of the Ministry of Finance and forming an independent financial body that includes banks, money transfer companies and insurance companies, and reducing The interest rate on investment projects.

As for the third axis, it includes restructuring public and losing companies, establishing a national telecommunications company, and presenting disabled government factories and factories to the private sector. Click here to download the 12-page reforms launched by Parliament.   LINK

Clare:  WOOHOO!  ...  THANKS DON!

MilitiaMan:  Surely they have presented the papers for the taxes at this time for a purpose. They will delete the zeros to be able to afford the 12% tax. Added value to the dinar will allow for the tax to be absorbed by even the poor..

Quite clear now they have full intentions of raising the three zeros and going to an international free market economy. 

They are going to issue the electronic dinar. Just as their neighbors are doing,, too. They are effectively going to be more cashless in the end run.

In the mean time the automation of the ports and borders will be taxing them, too. They will automatically be able to adjust pricing when needed.

 IF we recall the UN was in town this week. The UN wanted the correction to the White Papers.. Well that correction is the rate, imo..

The UN didn't show up just for shiz and gigs, be sure.. imo I hope this one Don961 brings us sets well for everyone, as the reviewing of the exchange rate to the dollar and the deletion of zeros is some serious meat on the bone.. lol ! imo ~ ~ MM

Don961: The Central Bank launches the electronic collection project for the housing fund

11/28/2020

Economy News _ Baghdad The Central Bank of Iraq announced, on Saturday, the launch of the electronic collection project for the housing fund, indicating that the project will enable the fund to automate all lending operations.

The bank said in a statement, which Al-Eqtisad News received a copy of, that an electronic collection project for the Housing Fund has been launched, indicating that the project will enable the strengthening of government resources and their collection in a safe and transparent environment, depending on the infrastructure of payment systems and electronic payment platforms provided by the Central Bank and its suppliers. Payment services licensed by him, "indicating that" the project generally targets ministries and collection departments that collect their revenues through bills and fees, on top of which is the Iraqi Housing Fund.

The bank added, "The project will enable the Housing Fund to automate all lending processes, adopt electronic payment tools and cancel cash transactions, which in turn will help alleviate the burden of citizens borrowing by accelerating the completion of transactions and using payment platforms instead of coming to the headquarters of the Housing Fund. This plan included The Fund provides a timetable for the inclusion of all its branches in the governorates with the collection project until the end of 2021. "  LINK

 MilitiaMan:  AUTOMATION.... They already told us about the ELECTRONIC DINAR!! More evidence they are gearing for a whole new economy and way of doing business.. Going DIGITAL.. Going Global... Love it.. ~ MM

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Don961:  The housing fund adopts electronic collection in collecting money

Baghdad - Special

In an event that is the first in Iraq, the Iraqi Housing Fund of the Ministry of Construction, Housing and Municipalities signed a contract with the Arab Company for electronic payment licensed by the Central Bank of Iraq to launch the electronic collection system for Iraqi housing fund borrowers in implementation of Cabinet Resolution No. 378 of 2018 and the instructions and controls of the Central Bank of Iraq .

This trend enhances government sector revenues, reduces spending and cuts red tape, also provides citizens with the ability to pay their bills or installments 24 hours a day and through electronic payment cards and electronic channels such as the mobile phone application of the housing fund, the phone application of the Arab company, as well as through automated teller machines and dependent payroll outlets. For the Arab company without the need to go to the headquarters of the Iraqi Housing Fund to pay the installments

It is noteworthy that the Arab Company for Electronic Payment is an Iraqi company established in 2013 and licensed by the Central Bank of Iraq to work as a provider of electronic payment services in Iraq. The company has worked for 7 years to provide modern electronic payment methods approved in the year and obtained international certificates in safety standards .

It also obtained a major member license from the global MasterCard and Visa in the field of issuing and collecting electronic payment cards of all kinds, and has made significant investments at the level of sober infrastructure and investment in human resources. In the shift towards a culture of electronic payment and abandoning cash transactions .  LINK  

MilitiaMan:  Fairly sure, the ATMs will have some new issues inside them.. Especially when we see them talking about the deletion of the zeros and the exchange rate to the Dollar.. Going to a market economy will require it.. imo ~ MM

 au·to·mat·ed tell·er ma·chine/ˈôdəˌmādid ˈtelər məˈSHēn/

 noun  plural noun: automated teller machines  a machine that dispenses cash or performs other banking services when an account holder inserts a bank card.

KTFA Members "News and Views" Friday 11-27-2020

KTFA:

Don961:  The economic reform movement is "the most serious" ... Iraq seeks to "sell things" at about $ 5 billion to "citizens": there is no alternative to solving the financial crisis!

2020-11-27

He noted: “The Ministry of Finance seeks to offer bonds worth 3-5 billion dollars to citizens in dinars and dollars, and we expect private and government banks to buy them.” Indicating: “The exchange rate of the dinar against the dollar will be fixed when issuing bonds, in order to avoid any losses in Buying bonds by banks and citizens.

He adds that the matter depends on knowing the extent of the global companies ’response, and whether there will be an impact on the global market and the interests of the producers in the event that it is adopted as a broader selling policy, and therefore the results are governed and not the idea alone, and we must wait for the next fiscal year and follow the experience carefully.   LINK

Godlover:  Holy guacamole  ....imo. Now these articles excite me!!!! 
I would say that not only will their exchange rate fixed (repaired) but their currency will become a fixed exchange rate imo.

Definition :A fixed exchange rate is a regime applied by a government or central bank that ties the country's official currency exchange rate to another country's currency or the price of gold . The purpose of a fixed exchange rate system is to keep a currency's value within a narrow band. The 2021 budget is exciting me even more.....IMO!!!

Kenster:  IMO IF THIS ARTICLE DOESN'T LIGHT YOUR FIRE..... ALL I CAN SAY IS YOUR WOOD IS WET!!!!

Edna:  Yeah I concur, This is not a "drive by article" bonds mean commitment IMO, this is promising stuff here.

Iobey777:  YES!!! Line it up with the other articles we have seen this past week and it certainly looks like they are finally ready to go into the Progressive lane and turn the New Rate loose! 

Don961:  Difference in numbers between two official authorities in Iraq that “hide” sums sufficient for salaries for 7 months ... and draw attention to 3 financial “scandals”

2020-11-27  Yes Iraq: Baghdad

The huge difference, up to doubling, in the data and accounts of the Central Bank and the Ministry of Planning about the value of imports entering Iraq during the year 2019 caused important questions among economic experts.

 The economic expert, Nabil Al-Marsoumi, said, "The value of commodity imports for the year 2019, according to the Central Bank of Iraq data, is $ 49.417 billion, of which $ 10.867 billion is government imports."

He added, "While the value of merchandise imports for the year 2019, according to Ministry of Planning data, will decrease to 20.9 billion dollars, of which 2.770 billion dollars are government imports."

 He pointed out that "the difference between the two total figures for the total import is $ 28.517 billion, although the data sources came from two Iraqi sides, only a few kilometers away spatially."

 He indicated that “this difference has two important consequences:

First: The merchandise imports for the private sector, which were published by the Ministry of Planning, were based on the data of the General Authority for Customs in 2019 amounting to about $ 18.1 billion, which represents the value of imported goods that entered Iraq through the border outlets except for the Kurdistan region, and this greatly explains the reason for the low customs revenues In Iraq, especially since about half of the imports are exempt from customs tariffs.

 Second: The big difference in the data, which amounts to 28.517 billion dollars, means that there are large quantities of imports that have entered Iraq informally through the unofficial crossings, or that the difference is due to the value of goods imported through Kurdistan ports. Is there a big money laundering in Iraq? By falsifying import lists for the purpose of smuggling US dollars abroad.

And the $ 29 billion, when divided by 5 billion, which is the sums required to provide salary funds per month. It turns out that the 29 billion is sufficient to provide salaries for more than 7 months. While these amounts are lost between customs exemptions, smuggling from informal outlets or money laundering, Iraq goes to borrow billions of dollars. To secure salaries.   LINK

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Don961:  “Billions in the street": a plan that makes Iraq earn 60 billion in a few weeks ... saves the treasury from "prospective bankruptcy"!

2020-11-26  Yes Iraq - Baghdad

The Iraqi engineer, Mazen Al-Saad, called, on Thursday, November 26, 2020, the Iraqi government to reconsider many projects that could be provided by providing $ 60 billion within 6 months.

Al-Saad said in a televised statement that “the government is able to connect the two-story bridge to several areas, make it a special road for large buses and licensed taxis, put gates at its entrance, and impose a levy on bus and taxi drivers, which can save large sums of money to solve the financial crisis they are suffering from.” Country ”.

He added that "the government is able to obtain large sums of money from public garages, whose money is currently going to unknown destinations. If this project was reconsidered, it would be able to solve this issue, this matter would have contributed to alleviating the burden of the financial crisis."

He added that "the tax file and job specification, through which a soldier, teacher, or any other profession cannot practice the profession of taxi driver, and it will contribute greatly to organizing the work of the state and supplying its treasury with the money it imposes in exchange for providing services," indicating that "these measures will help the government provide 60 A million dollars within 6 months.

Earlier, the Iraqi government officially adopted the economic reform program prepared by the emergency cell for financial reform, which is known as the "white paper". To maximize the state's resources and end the economic crisis.

And the Iraqi government website published a summary of the objectives and themes of the White Paper for Economic Reform, in which it stated:

(The White Paper) is a comprehensive roadmap that aims to reform the Iraqi economy and address the serious challenges facing it, which have accumulated over the past years due to wrong policies, mismanagement, corruption, and the absence of planning in addition to the almost total dependence on oil as a primary source of state revenue.

Iraqi Deputy Prime Minister and Minister of Finance Ali Allawi said that "the white paper aims to restore balance to the Iraqi economy, and put it 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."

Although the current financial crisis that Iraq is going through is linked to the sharp decline in oil prices and the repercussions of the Corona pandemic, the (White Paper) clearly indicated, supported by figures and facts from specialized international sources, that the roots of the crisis go back decades.

The White Paper reviewed a series of factors that distorted the Iraqi economy and undermined its ability to provide a decent life for large segments of Iraqis, and led to its failure to keep pace with the economic developments that the world witnessed, including:

The state’s role in the economy expanded

Perhaps one of the main reasons that led to the deterioration of the Iraqi economy, which was identified by the "white paper" is the expansion of the role of the Iraqi state in the economy.

For decades, the Iraqi economy was exposed to a series of shocks that led to the creation of an economy directed by the state, starting with the nationalization policies of vital sectors in the seventies of the last century. Then wasting opportunities to change this trend since 2003 and the failure of the new political system in Iraq to build a free and diverse economy in accordance with the principles of the Iraqi constitution.

The expansion of the role of the state, especially the increase in the number of workers in the public sector of various kinds, the expenses of their salaries and the salaries of retirees, came at the expense of spending on and investing in the basic infrastructure in the country.

For example, from 2004 to 2020, state expenditures on salaries of employees and retirees increased by 400% in real terms, and the total number of workers in the public sector more than tripled.

Between 2006 and 2018, average public sector salary payments increased by 134%, more than the increase in labor productivity, which rose only by 12%, or the cost of living, which rose by 28% during this period.

Over the past 17 years, the salary expenditures of the employees, who today number 4 and a half million employees, and the retirees, who number two and a half million retirees, have become the most growing expenditures in the successive Iraqi budgets during this period.

Decline of the private sector

The expansion of the state’s role, in addition to the complex administrative system and the weakness of successive governments in imposing the rule of law, in addition to the militarization of society and the growing 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 companies operating in the oil and telecommunications sectors in addition to Very small companies operating in the fields of trade, retail, transport, construction, hospitality and textiles, with almost complete absence of these companies in the field of manufacturing goods for sale.

Most of the largest companies in the private sector depend on providing services to the state and on government contracts.

Collapse of oil imports and the Corona pandemic

The White Paper also identified other factors that led to the deteriorating economic situation that Iraq is going through, most notably the collapse of oil imports and the Corona pandemic, mismanagement, lack of planning and weakness of financial institutions in Iraq, especially the Ministry of Finance, the absence of modern coherent systems for managing imports, and the weakness of the system Banker, and the absence of automation in government procedures, in addition to the destruction of infrastructure and the costs of the war against these terrorist gangs by ISIS.

Two strategic goals

The White Paper seeks to achieve two strategic objectives. The first is to initiate an immediate reform program to address the budget deficit to provide the time and financial spaces for implementing reform plans in the medium term.

While the second goal seeks to put the economy and the budget on a sustainable path, after which Iraq can finally decide and choose the economic direction. Thus, immediate reforms and reforms in the medium term need between 3 to 5 years to implement.

Axes of reform

The (white paper) identified reforms in the following areas:

The first axis: achieving sustainable financial stability and providing an opportunity to achieve other structural reforms

The most prominent trends of this axis:

Reducing the primary budget deficit from 20% to 3% of GDP and reducing salary expenditures from 25% to 12.5%

Collecting electricity wages from all users according to the real fuel price in global markets

Activating the program to recover stolen and stolen money

Increase customs and tax revenues

Reform the retirement fund and gradually stop financing it from the budget

Financial management systems reform

Study the current exchange rate of the dollar against the dinar

The second axis: achieving strategic economic reforms and providing sustainable job opportunities

The most prominent trends of this axis:

Rehabilitation of the banking system through the development of private banks, reform of government banks, and the introduction and activation of the (basic banking system) in Rafidain and Rasheed banks

Accelerate the development of electronic banking services

Opening specialized markets such as the commodity market and the currency exchange market

Activating the sectors driving the economy, such as agriculture, oil and gas

Realizing an effective increase in the private sector’s contribution to economic activity through activating the private sector support fund and simplifying procedures

Providing 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 labor market

The third axis: improving the basic infrastructure

The most prominent trends of this axis:

Increasing the effectiveness of the performance of the various joints of the electric power system in Iraq

Developing digital infrastructure, by introducing advanced technology (fourth generation) at the beginning of next year, and preparing for the introduction of (fifth generation) technology

Modernizing the legal and regulatory framework for the transport sector to achieve increased financing for infrastructure projects in it by moving towards attracting investments and building partnerships between the public and private sectors.

Development of industrial cities and free zones in Iraq

The fourth axis: Providing basic services and protecting vulnerable segments during and after the reform process

The most prominent trends of this axis:

Providing potable water, irrigation and completing sanitation networks

Begin building 1,000 new schools within the period of the reform plan

Completely redrawing the social protection system, and unifying the different types of support

Establishing a unified and financially sustainable pension system for all Iraqis working in the public, private, cooperative and mixed sectors

Completing the health insurance bill and implementing it, in a way that guarantees basic health services for all citizens

The fifth axis: developing governance and legal systems to enable institutions and individuals to implement reforms

The reform program defines the completion of the National Information Center project to automate the process of providing service to citizens, especially the procedures for obtaining citizenship, passports, retirement and social security as a priority. The White Paper on Economic Reform

The most prominent trends of this axis:

Review and amend instructions for implementing government contracts

Cooperating with criminal investigation organizations to reduce the large sums that are smuggled out of Iraq

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

Completing the National Information Center project to automate the process of providing service to citizens, especially the procedures for obtaining citizenship, passports, retirement and social security

The application of the electronic signature and electronic transactions law and the phasing out of paper transactions

A detailed implementation plan will be launched later that includes the required procedures, the concerned parties for implementation, timelines and mechanisms to follow up the implementation of the White Paper.  link

Purifiers:  WHAT!!!!!!! Electronic signature!!!!!!!???  THAT IS "A" MOST "MODERN" DIGITAL TECHNOLOGY... IMO  Woohooooooo

Clare:  MOST EXCELLENT...........IT IS VERY EXCITING!! IMO

MilitiaMan and KTFA Members "Fascinating Times" 11-26-2020

KTFA:

Ross:  The 2021 budget has not been finalized by the Kadhimi Cabinet and they plan to work next Tuesday to complete that task and be in a position to submit same to Parliament: 

 "Minister of Culture Hassan Nazim announced, Tuesday, that the next session of the Council of Ministers (Cabinet) will be devoted to the budget law only.

He added that "the next cabinet session will be devoted to discussing the draft budget law only..."

IMO this is the next step in preparing the 2021 budget to be sent to Parliament and the postponing of Parliament's next meeting to 12/05 has nothing to do with this meeting next Tuesday.   I reserve the right to be wrong. Lol  

MilitiaMan:  My thinking is in line with yours.. Thanks for sharing..

MilitiaMan: They'll have to show the finalization of the 2020 budget, imo at some point. Thus, the data needed for the 2021 is my focus, as is the UN, etc.. (see below). We see the CBI has been busy lately too. They have been in talks with the BIS. That is a very good sign.

When the Central Bank of all Central Banks speaks about investing opportunities that are apparently agreed upon in respect to foreign reserves we should all take notice. Look at even the UN is waiting on the implementation of a correctional white paper issue. In other words a change to it.

That change may very well be between now and Tuesday. As noted in your post for the COM to have a meeting on the 2021 Budget only! They were very specific on that matter. Fascinating times we are witnessing.. imo ~ MM

"The association added, "The Central Bank of Iraq is taking a wise policy, during this stage under its new management, which is represented by increasing confidence between the banking sector and citizens, increasing monetary and pledging credit by supporting small, medium and large enterprises in addition to the successful experience that the Central Bank has undertaken in launching a special platform." Letters of guarantee"

The association noted that it "appreciates the great steps taken by the Central Bank in increasing financial inclusion and supporting banks in their work to diversify banking services, in addition to international cooperation between the central bank and its counterparts from international central banks, which leads to the development of relations between Iraqi and foreign banks, and that these policies and procedures" It will lead to an increase in banking services provided by banks to the aspiration of the Iraqi citizen

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FROM IRAQI TV:

"Deleting 3 zeros from the currency .. Parliamentary finance  determines the size of the cost and the economic   effects"

"Therefore, in general, it can be said that deleting zeros from the local currency without meaningful and effective economic reforms in all economic sectors will be negative and have no positive impact on the national economy and does not contribute to reducing inflation, although some may delude some that prices have decreased and the purchasing power of the currency." Got better. Accordingly, it can be said that what was mentioned above applies to the Iraqi economy, and this step will have a negative impact if it is not carefully planned and is associated with effective economic measures, revitalizing national industry and supporting the private sector to advance the national economy.

link

"A bank statement said, "The Central Bank of Iraq held a remote meeting with the Bank for International Settlements (BIS) to discuss prospects for joint cooperation and investment mechanisms between the two parties." 

"The statement pointed out that "the two sides agreed on the contribution of the Bank for International Settlements to enhance the capabilities of the Central Bank of Iraq and increase investment opportunities in foreign reserves."

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"

LINK

Plasschaert: We await the implementation of the Kazemi correctional paper

"The Special Representative of the Secretary-General of the United Nations in Iraq, Jenin Blashart, confirmed, on Tuesday, the economic paper presented by Mustafa Al-Kazemi's government is awaiting implementation, "

Samson:  Al-Fateh: We will host Al-Kazemi in the event that the 2021 budget is not sent

17:51 - 11/26/2020
Al-Fateh Alliance confirmed, on Thursday, to host Prime Minister Mustafa Al-Kazemi in the event that he did not send the 2021 budget to the House of Representatives.

Deputy for Al-Fateh Zahra Al-Bajari said to "the information" that "the arrival of the prime minister to the parliament did not take more than minutes."

She added that he "attended the funeral council for the death of Deputy Al-Zuhairi," noting that he "left the council immediately afterwards."

Al-Bajari explained that "the House of Representatives will host Al-Kazemi during the coming sessions in the event that it is not sent to the 2021 budget in the coming days."   LINK

MilitiaMan:  There is a reference that they are possibly working behind the scenes on this 2021 budget.. Coming days can mean at anytime too.. The pressure is on, as noted by the UN comments.  imo.. ~ MM

KTFA Members "News and Views" Thursday Morning 11-26-2020

KTFA:

DELTA: In the presence of His Excellency the Governor of the Central Bank of Iraq, Mr. Mustafa Ghaleb, the respected members of the House of Representatives, the Iraqi Economic Council held a special seminar to provide support to the private sector, discuss the challenges and develop appropriate solutions that facilitate the procedures.

Jaime-O:  SO PLEASE TELL US THE SIGNIFICANCE, IF ANY, OF THIS.

StephenMac63:  It's the governor of the CBI having a meeting along with respected members from the house of representatives and the Iraqi Economic Council was there also and they spoke about providing support to the private sector, even talked about different challenges and came up with possible solutions for various problems if they arise.

Oh wait, thats what the article says....ok, it was like one big giant Chamber of Commerce meeting with super duper economic big shots and they were discussing how to make the markets in iraq successful...imo

Samson:  With the participation of officials and more than 700 personalities ... "Chatham House" is hosting a conference on Iraq

26th November, 2020

On the initiative of the (Iraq Initiative Project) headed by Renad Mansour, the Royal Institute of International Affairs (Chatham House), based in London, from November 23-25 ​​(November) held a virtual conference, via the Zoom app, on Iraq under the title: (Iraq : Dealing with reforms, the status quo, and collapse).

The conference was attended by the Iraqi Deputy Prime Minister and Minister of Finance Ali Allawi, Deputy Prime Minister of the Kurdistan Regional Government, Qubad Talabani, National Security Adviser Qassem Al-Araji, Minister of Culture and Antiquities Hassan Nazim, President of the National Investment Authority, Soha Al-Najjar, Deputy Assistant to the US Secretary of State David Coeli, Senior Advisor to the Prime Minister Fener Haddad and a group of experts Economists, academics, ambassadors and more than 700 personalities from different parts of the world.

The sessions were moderated by Renad Mansour, Lina Al Khatib, Maya Jabili, Eleanor Robson, Jane Araf.

Over the course of three consecutive days, with eight sessions, the attendees discussed the crises afflicting Iraq and ways to overcome them, the future of Iraq in the region, the prospects for reforming the security sector and the flabby economic system, the nature of the problems between Baghdad and Erbil and ways to address them, and how to empower Iraqi youth to shape the country's future. And the importance of cultural heritage in the process of building the Iraqi state.

The dialogues featured a distinguished interaction with the participants by presenting questions and interventions. LINK

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Samson:  British Support For The Iraqi Government's Measures Towards Financial Reforms

25th November, 2020

Britain showed its support for the Iraqi government's plans towards achieving financial reforms and expanding the horizons of cooperation with Iraq.

The Minister of Finance, Ali Abdul-Amir Allawi, discussed during his meeting with the British Ambassador to Iraq Stephen Hickey, in a statement by the ministry, ways of cooperation between the two countries in the financial aspect.

Allawi praised the level of the relationship with the United Kingdom and its support for the aspirations of the Iraqi people.

For his part, the British ambassador affirmed his country's desire to expand the horizons of cooperation with Iraq and support the Iraqi government's measures towards achieving financial reforms that the Ministry of Finance is working on.  LINK

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Samson:  Economist: Stopping corruption and recovering smuggled money is a guarantor to cover the budget deficit

08:51 - 11/25/2020

The economic expert, Hassan al-Kinani, said that stopping and combating corruption and recovering smuggled money is a guarantee of solving the budget crisis and covering the financial deficit, pointing out that the currency auction is the other one must go to and control the money entering and leaving Iraq.

"There is an urgent need to control hard currency and prevent its exit from Iraq, and to identify the exit points for this currency," Al-Kinani said.

He added, "The extent of corruption is large, especially with regard to the oil file, in addition to the waste of a lot of money by some ministries and state departments, as covering the budget deficit needs to stop corruption as well as recover the smuggled money."

And that "maintaining political hegemony over some financial sources, oil companies and currency outlets, will make Iraq a bankrupt country unable to pay the dues of its employees, and may live in a self-economic blockade."   LINK

Samson:  Nassif: Transferring Corruption Files From Major Ministries And Agencies To Integrity

25th November, 2020

The deputy for the State of Law coalition announced that corruption files in the Ministry of Youth, Transport and Communications, and the Tax Authority were transferred to the Integrity Commission.

 Nassif said in a statement, which Al-Mustaqilla received a copy of today, Wednesday, “We referred corruption files to the Integrity Commission for investigation, and they belong to the Ministry of Youth and Sports, the Ministry of Transport (the project of automatic cutting competitions), and the Ministry of Communications (regarding the Internet and the companies that the ministry has contracted with), And the General Tax Authority (due to corruption and waste of public money worth 19 billion dinars in the tax accounting of the Chinese Oasis Company).

Nassif explained, "These files have been officially referred to the esteemed Integrity Commission, and there are many files that we will refer in the coming days, and we hope that the Commission will initiate its investigations and announce the results to the Iraqi people who are awaiting justice and recovering public money stolen by the corrupt."  LINK

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An Expert In The Oil Issue: The Rise In Oil Prices To $ 60 In 2021

25th November, 2020

An expert on oil matters, Hamza al-Jawahiri, suggested that oil prices would rise to $ 60 next year.

 Al-Jawahiri said in a press statement that the Independent monitored that according to the situation related to the Corona pandemic, if the ban is eased or lifted completely or partially, or the vaccines succeed in alleviating them or not, oil prices will rise in all cases to $ 60 next year.

He added: The next year will witness a better situation because a number of these vaccines must succeed and thus life will return to normal.

 Prices will rise and may reach $ 60 per barrel, OPEC countries production will return to the state before the pandemic and global production will return to the level of 100 million barrels per day.  LINK

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Samson:  "Mosul" .. An International Film In The Iraqi Dialect On Netflix

25th November, 2020

The film "Mosul" will be shown tomorrow, Thursday, on the US digital broadcasting platform, "Netflix," the first Hollywood action movie, speaking in Arabic and in the Iraqi dialect, and starring real Iraqi characters.

 The film was directed by the American Matthew Carnahan and produced by the brothers Anthony and Joe Russo, who produced the movie "The Avengers .. The Game Is Over."

The film's story revolves around a special unit in the Iraqi forces that fought against ISIS between 2016 and 2017 to retake the city of Mosul, in northern Iraq.

 Director Carnahan revealed that he required shooting the film in Arabic to be directed, and he was surprised by the quick approval of the Rousseau brothers.

Four months after Mosul was retaken from ISIS in December 2017, filming began secretly in Morocco for security reasons, with a crew made almost entirely of Iraqis.

2 MINUTE NETFLIX CLIP PREVIEW   LINK

Delta and KTFA Members Wednesday PM 11-25-2020

KTFA:

Samson:  Cabinet: Next week’s session will discuss the 2021 budget   LINK

DELTA: FROM FA )Final Articles) ...THAT'S WHY 2021 IS SO IMPORTANT ....

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

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

Godlover:  I agree 100% imo. Articles made it clear their intentions with the 2021 budget for several months imo. I also agree that with the reforms in the 2021 budget, that a rate is needed imo. I just pray to God they get this budget sent, read, signed into law & opened early next year!

Deepwoodz:  Imo....Not to mention Frank and Delta said the rate should precede the budgets arrival in parliament.  Lets hope Gods timing concurs. 

Ross:  If you have been here a number of years I think usually about this time we start "remembering" Dr. S, saying the best time to RI/RV is either the start of the year or mid-year.  I suspect we will seeing the goal reached around the 1/01/21, give or take a week.  Also, if we are following the Turkmenistan pattern it revalued on 1/01/05.

If the rate is in the 2021 budget then not sure we can expect to see it finalized in 2020 and the rate exposed unless something different historically happens.

Remember this: Next week ... the 2021 budget will arrive in Parliament
17th November 2020: It is hoped that the draft federal budget law for the year 2021 will reach the House of Representatives next week, based on government promises received by the Parliamentary Finance Committee.

Taking bets that we will not see it before Christmas unless they need to pay salaries at the new rate. I think that F26 implied that the rate info would pass down to the tellers in 2-3 weeks. Please correct me if I misunderstood.  All IMOO.

DELTA:  THANK YOU FOR THE SENDER...

Al-Samarrai calls for reforming the central bank and unifying the exchange rate

 25-11-2020

Former Parliament Speaker Iyad al-Samarrai called for the restructuring of the central bank in line with the structures of international central banks, with the unification of the exchange rate in all banks.

"The exchange rate is very important, and any major change in the exchange rate and the float will be a disaster for the economy and its consequences will be complex and the economy will not recover for decades, an example of this is what happened in Jordan, Egypt and many other countries," al-Samarrai said in an article.

He pointed out that "gradual change is very important if it is necessary, as the local currency and its stability are among the most important tributaries of the economy's strength."

He stressed that "it is necessary first to reform the central bank in line with the structures of global central banks and have a committee of experts who do not interfere in executive matters only and specialize in setting and monitoring policies, and it is not subject to the government and does not interfere in its policies."

He also stressed that "the exchange rate must be the same in the banks, as for the black market and the cancellation of exchange companies specialized in taking hard currency from the central bank and selling it in the market and the resulting great corruption."

He called for the price to be the same in the bank and at the cashier, "taking into account the sale and purchase commission, canceling the auction of currency sale and making it available to all banks and exchange companies and for legitimate dealings of import and export and the needs of citizens, and it is not a reason for smuggling money, especially the money of corrupt deals."

The post Al-Samarrai calls for reforming the central bank and unifying the exchange rate appeared first on the independent press agency.

 Al-Samarrai calls for reforming the central bank and unifying the exchange rate

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Samson:  Vietnam calls on the international community to provide support to Iraq

12:59 - 11/25/2020

The head of the Vietnamese mission to the United Nations, Ambassador Dang Dinh Qui, called, on Wednesday, the international community to continue supporting Iraq , which is facing deep-rooted economic, social and political challenges.

"Vietnam Plus" newspaper stated in a report translated by the agency / Al-Maaloumah / that “Ambassador Coy stressed during the virtual meeting of the United Nations Security Council on Iraq that Vietnam supports the positive roles of the United Nations Assistance Mission for Iraq (UNAMI) and other United Nations organizations in addressing the situation in Country”. He added, "The ambassador expressed his concern about the complex developments of the Coronavirus epidemic, terrorist attacks on civilians, and the humanitarian issue in the country, where millions of people live in extreme poverty and hunger and depend on relief aid from the international community."

Coy said that "the highest priority must be given to protecting the people", stressing "the need to ensure respect for the independence of politics, unity, sovereignty and territorial integrity of the country." According to Jeanine Antoine Plasschaert, Special Representative of the Secretary-General for Iraq and Head of the United Nations Assistance Mission for Iraq (UNAMI), "other United Nations organizations have worked in the past to help the government and the Iraqi people to stabilize the situation and deal with challenges."

She added that "the organization is working to assist the Iraqi government to fulfill its obligations to prevent the Coronavirus epidemic and coordinate in preparation for holding elections on June 6, 2021."

The members of the United Nations Security Council expressed their concern about the profound effects of the Corona epidemic in Iraq, which is facing a variety of difficulties, noting that Iraq is still continuing his efforts in the field of fighting terrorism.   LINK

Samson:  Al-Ansari : The Economic Contact Group will accelerate the implementation of economic reforms

25th November, 2020

The economic expert, Aqeel Al-Ansari, said that the formation of the Economic Contact Group for Iraq will contribute to the implementation of economic reforms in Iraq

He added in a statement to "Al-Iqtisad News" that "the group's role is to assist the Iraqi government in drawing a roadmap to get out of the economic predicament that it is experiencing, as a result of the outbreak of the Corona virus and the low oil prices.   He added, "The importance of the group also relates to that it is a contact group and not a financial or economic alliance, meaning that they will not provide loans like the Kuwait Donors Conference

"It is hoped that the group will monitor the progress of reforms, provide advice and expertise that is lacking in Iraq, and mobilize the international community to help it and bring it closer to international or legal accounting firms," ​​Al-Ansari said

He pointed out that "the periodic meeting of the group, every three months, will push all parties to implement what they have agreed upon and to progress according to the road map drawn

He added that "the international community is represented in this group by the World Bank and the Monetary Fund, as well as the Group of Seven, which gives an indication that the international community is morally committed to helping Iraq out of this ordeal and build a better future  LINK

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Samson:  Economist: Stopping corruption and recovering smuggled money is a guarantor to cover the budget deficit

08:51 - 11/25/2020

The economic expert, Hassan al-Kinani, said that stopping and combating corruption and recovering smuggled money is a guarantee of solving the budget crisis and covering the financial deficit, pointing out that the currency auction is the other one must go to and control the money entering and leaving Iraq.

"There is an urgent need to control hard currency and prevent its exit from Iraq, and to identify the exit points for this currency," Al-Kinani said.

He added, "The extent of corruption is large, especially with regard to the oil file, in addition to the waste of a lot of money by some ministries and state departments, as covering the budget deficit needs to stop corruption as well as recover the smuggled money."

And that "maintaining political hegemony over some financial sources, oil companies and currency outlets, will make Iraq a bankrupt country unable to pay the dues of its employees, and may live in a self-economic blockade."   LINK

Samson:  Severe imprisonment of an Iraqi government official

25th November, 2020
On Wednesday, the Federal Integrity Commission announced the issuance of a court ruling against an official in the Kirkuk Governorate Court, indicating that the decision came on the background of his committing the crime of bribery.

The investigation department of the authority stated, in its presentation of the details of the case that it investigated and referred to the judiciary, that the Kirkuk Criminal Court / Second Authority issued a ruling ordering the severe imprisonment of the director of the General Planning Department in the provincial office. Based on the provisions of Resolution (160 / Second / 1 of 1983) and with reference to Article (132/3) of the Penal Code.

The department continued, indicating that the details of the case it investigated indicate that the convict committed the crime of bribery by requesting sums of the value of the project to rehabilitate the property of the municipality of Hawija in exchange for referring the project, and taking sums from contractors in exchange for referring other projects to them.

It showed that the court, after reviewing the evidence obtained in the case and the statements of the witnesses, had reached full conviction of the convict's negligence. So I decided to sentence him to three years' imprisonment and a fine. Based on the requirements of the ruling article.  LINK

Tuesday Night KTFA CC with Frank and Delta and some news 11-24-2020

KTFA:

KTFA CC with Frank and Delta 11-24-2020

Frank26:  11-24-20.....TALKING WITH DELTA

This is all in Frank and Delta’s opinion.

Changing the rates with change Iraq and change the world.

Pay attention to the Erbil and Iraqi stock exchange.

Just be patient….when you see the shoreline- you don’t jump out of the boat to swim to shore…..you wait until the boat is docked.

https://www.youtube.com/watch?v=o6g0xBUJxCs&feature=youtu.be

DELTA:  THIS WAS SEND TO ME....THANK YOU FOR THE SENDER 

AL-ARRAJI DEMANDS CBI TO ADOPT A REAL RATE FOR IRAQI DINAR

 24-11-2020

Al-Mustaqilla .. MP Muhammad Sahib Al-Darraji called on the Central Bank to adopt the real price of the Iraqi dinar, away from the prices offered in the currency auction.

Al-Darraji said in a tweet on his Twitter page, Tuesday, "The central bank must adopt a real price for the dinar, away from breaches of the window of selling the notorious currency."
He also called for "disclosing bills and documentary credits provided by banks in exchange for transferring hard currency abroad and checking its credibility."

Al-Darraji stressed that the bank’s failure to do so is that it “is considered an accomplice in the crime and we will have to resort to legal methods to remedy this defect.”

The window of selling the currency in the central bank faces many criticisms, while leaks stated that a number of banks acquire the amounts that are being traded in the currency auction for the purpose of increasing their profits. Link

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Samson:  Iraq is waiting for two billion dollars in advance payments from countries wanting its oil

In a first step to implement his plan, Iraq demanded $ 2 billion in advance of the value of its oil exports as part of long-term oil sales contracts

The agency "Bloomberg", that Iraq suffers from a severe financial crisis as a result of the decline in global oil prices and its forced to reduce production in the framework of the agreement of the countries of OPEC Plus grouping to support these prices

According to a letter sent by the Iraqi government to oil companies and seen by "Bloomberg," the government seeks to obtain advance payments from the value of oil sales in exchange for 5-year supply contracts at a rate of 4 million barrels per month, equivalent to 130,000 barrels per day. The buyer will pay for the supplies a full year in advance, which at current prices equates to just over $ 2 billion

The letter, described as confidential, says that the Iraqi Oil Marketing Company, on behalf of the Ministry of Oil, is interested in proposing long-term crude supply contracts in exchange for advance payments. Companies interested in the offer can send their response by November 27

According to the agency, many oil-producing countries depend on advance payments to meet their financial needs, but it is the first time that Iraq has resorted to this method  LINK

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Samson:  The Central Bank holds a meeting with the Bank for International Settlements (BIS)

24th November, 2020  Appearing on CBI today

The Central Bank of Iraq held a remote meeting with the Bank for International Settlements (BIS) to discuss prospects for joint cooperation and investment mechanisms between the two parties.

The two parties agreed on the contribution of the Bank for International Settlements to enhance the capabilities of the Central Bank of Iraq and increase investment opportunities in foreign reserves.

The Bank for International Settlements is an international institution that provides services to central banks that seek to enhance global monetary and financial stability,

And that through its activities in achieving a balance of the priorities of strategic importance for central banks in managing reserves,

 And ensuring a good understanding of liquidity management and diversification in order to obtain good returns to meet their needs,

 As well as providing credit brokerage services, gold, foreign exchange and asset management, including an integrated management function

 For financial and operational risks and properly control them.

The Central Bank of Iraq  information Office

November 21, 2020  link

Samson:  Cabinet: Next week’s session will discuss the 2021 budget

24th November, 2020

The Minister of Culture, Hassan Nazim, announced the decisions of the Council of Ministers in a press conference, which included a number of economic decisions

Nazem said, in the conference attended by "Al-Eqtisad News", that the Council of Ministers voted to implement the road linking the port of Al-Faw and Umm Qasr

He added that the government has continuous meetings in order to address the errors in the second borrowing law, explaining that the Council of Ministers has recommended the need to enter Iraq with financial obligations with other companies producing the Corona vaccine to ensure coverage of groups other than the 20%

He stressed that the Council of Ministers voted not to appoint anyone who is proven to have committed bribery and embezzlement at the level of Director General and higher.  He noted that the next cabinet session will discuss the draft budget for next year  LINK

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Samson:  Al-Kazemi government discloses the date for approving the 2021 budget

The government of Iraqi Prime Minister Mustafa Al-Kazemi announced today, Tuesday, the date for approving the country's general budget for the next year 2021.

The spokesman for the Council of Ministers, Minister of Culture, Hassan Nazim, said in a press conference held today, after the end of the cabinet session, and was attended by Shafaq News Agency, that "in the absence of a general budget for the country, it is not possible to declare sending funds to the Kurdistan Region."

He responded to a question regarding previous statements by Ahmed Mulla Talal, the prime minister's spokesman.

The Minister of Culture stated that "the Cabinet has allocated the next session to approve the General Budget Law for 2021."

A source in the Ministry of Finance told Shafaq News Agency earlier that the ministry will complete the preparation of the draft general budget bill for 2021 and present it to the cabinet next week. He added that "the Council of Ministers will discuss and approve the draft budget during its regular session (Tuesday) or in a special session, after which it sends it to the House of Representatives for a vote on it." The source revealed that "the price of a barrel of oil specified in the draft budget ranges between 35-40 dollars."

Iraq relies on oil sales revenues to finance 95 percent of state expenditures. The country is experiencing a stifling financial crisis this year due to the decline in crude prices on global markets due to the Corona pandemic. Iraq did not approve a financial budget for the current year due to the circumstances that accompanied the unprecedented popular protests that toppled the government of Adel Abdul Mahdi late last year.  LINK

Bravo13:  "the cabinet has allocated the next session to approve the general budget law for 2021". Frank said the rate is in the 2021 budget, this could be it, next tuesday, looking better and better, IMO

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Samson:  Kurdistan opens the doors for investors and reveals its future plans

23rd November, 2020

The Prime Minister of Kurdistan Regional Government, Masrour Barzani announced, on Monday, that the region’s doors will be opened to American and other investment companies and that they will overcome obstacles to enter the region’s market, stressing his government's endeavor to improve services and various sectors, especially electricity service, to provide the population with energy throughout the day.

Barzani said at the opening of a Kurdistan-American conference to encourage investment in the region for the post-Corona virus period, sponsored by the American Chamber of Commerce and Industry through "video conference" technology, and Shafaq News Agency followed it up, that "the regional government has provided great facilities for investing companies to enter the region, and we encourage companies. American investment in the region. " He added that "the increase in investment projects provides job opportunities," noting that "the Kurdistan region is the most secure region of Iraq and the region, and a suitable environment for attracting American and foreign companies."

Barzani added, "The investment of American companies in the region is in the interest of the Kurdish people, and we seek to further strengthen relations between Erbil and Washington." "My government is also working to reduce red tape to ensure investors can complete necessary procedures faster and easier - from company registration to visa and permit regulations -" he said.

Barzani added, "We are working hard to diversify our economy, by privatizing parts of the agricultural and electricity sectors. It is possible that the Kurdistan Region will become Iraq's food basket." He added that "the Kurdistan Region wants to achieve self-sufficiency mainly, and hopes to export its local products to the countries of the region and all over the world," noting the endeavor to provide electricity service in the region throughout the day.

The conference activities will last for two days with the participation of high-ranking officials from America and the Kurdistan Region and American companies investing in the region.

The head of the Investment Commission in the Kurdistan Region, Muhammad Shukri, said yesterday, Sunday, to Shafaq News, that the Commission will present its vision for investment and investment areas for the period after the Corona virus, indicating that the conference will address the amendments that are to be made to the investment law and investment opportunities in the region. He stressed that the Kurdistan Investment Authority, "will provide a clear vision of the investment climate in the region for American companies that want to invest in Kurdistan."  LINK

Monday Night KTFA CC with Frank26 and Team 11-23-2020 "BIS IS NO BS"

KTFA:

Monday Night KTFA CC 11-23-2020

A NEW UB2B WITH THE IQD UPDATE

PLAYBACK IS: 605.313.5163 PIN: 156996#

Frank26:  11-23-20.....BIS IS NO BS

​BIS = BANK OF INTERNATIONAL SETTLEMENTS

(BIS) is an international financial institution that aims to promote global monetary and financial stability through the coordination of global central banks and their monetary policy efforts.

Special Guest “Blue Star” along with MilitiaMan, Petra and Delta.

THIS IS ALL IN FRANK'S AND HIS TEAM’S OPINION

Frank26:  1. G7 AND ALL OF THE BIG PLAYERS *2.THE CENTRAL BANKS * 3.THE SR. PRIVATE BANK EXECUTIVES *4.OPEN THE DOOR -- THE PRIVATE BANK EXECS TELLING THE CITIZENS TO COME IN AND SEE WHAT THEY'VE GOT.

https://www.youtube.com/watch?v=_Qtc5HZCso8&feature=youtu.be

MilitiMan and KTFA Members "GO, GO, GO Time!" 11-23-2020

KTFA:

Zeeman:  what ever happened to the white papers and kazemi and the fab4 after he left washinton? i thought it was a done  deal with the cbi. can someone explain thanks  

MilitiaMan:  The white papers look today to have signs of partially being implemented, which, suggests things are underway, we just are not yet privy to the details. Imo

Samson:  The White Paper for Economic Reform sets out a set of strategic reforms to support key sectors of the economy, the growth of the private sector, create jobs and modernise banking services. #EconomicReforms #WhitePaper  For more on the White Paper: https://t.co/Lc2xC5ERx7 pic.twitter.com/rTNErks8bc — Government of Iraq - (@IraqiGovt) November 23, 2020

Samson:  The White Paper for Economic Reform identified achieving sustainable financial stability as a fundamental reform measure and key to delivering economic prosperity. #EconomicReforms #WhitePaper To learn more about the White Paper, click here: https://t.co/Lc2xC5ngFz pic.twitter.com/9LbWNo36uJ — Government of Iraq - (@IraqiGovt) November 23, 2020

Don961:  The appearance of Muhammad Saleh: 83% of the monetary supply is "almost idle."

Monday 23rd November 2020Baghdad: Haider al-Rubaie 

The economic advisor in the cabinet, Dr. Mazhar Muhammad Salih, proposed a set of solutions aimed at confronting the fiscal deficit in the next year 2021 budget, which was initially estimated at approximately 35 trillion dinars, putting at the forefront of these proposals, financing the deficit gap through improved oil revenues and positive developments, That may happen in the energy markets, as well as resorting to loans  External.

The head of the Parliamentary Finance Committee, Haitham al-Jubouri, called "during a press release" the government to send the 2021 budget, pointing out that his committee will work to enable the budget law to maximize the state's non-oil revenues and carry out economic and financial reforms.

And counting on the budget law next year, to eliminate the “salary delay crisis” if it is approved within the specified period, and as Ahmad Mulla Talal, the spokesman for the Prime Minister, confirmed this during an interview with “Al-Iraqiya News Channel” when he said, “We need to approve a budget 2021 quickly so that salaries are not late.

Treating impotence

The fiscal deficit in the 2021 budget is a frightening concern in economic circles, but Saleh believes during his speech to Al-Sabah that “addressing the deficit is done through two types of considerations. If there is a (conservative hypothetical deficit), then the deficit gap during the fiscal year is automatically funded. From improved oil revenues and positive developments that may occur in the energy markets in the coming year.

External borrowing

The economic expert draws attention to the possibility that a (real deficit) may occur, as it requires financing according to the priorities of exchange or spending in the general budget, likely at the same time, Iraq's openness to borrowing from abroad in order to obtain financing, especially from international multilateral financial institutions, Like the World Bank and various international funds, provided that the resources borrowed from abroad are allocated to investment projects that generate income and employ manpower.

Issuing bonds

Regarding internal borrowing, Saleh believes that if government banks reach a point where they cannot lend to the government, then they can go to the issuance of optional bonds that are sold directly to the public and carry specific interest and privileges, indicating that “83% of the current monetary mass (as financial wealth is almost idle) Which is nearly 50 trillion Dinar".

He pointed out that "this block is still leaking to the public, and lies outside the banking system in the form of hoardings cut off from the income cycle in the economy and does not deal with the banking system, which means that there are large suspended financial surpluses that can be borrowed and cover the budget deficit."

Saleh pointed out that “bonds are a government debt instrument in dealings, mortgages, and even tax payments or any other financial obligations, as these sovereign bonds can be taken as guarantees for borrowing and others, in addition to being a government debt instrument of excellent class, which is a context in place in all major markets. Money in the world to finance the budget, especially the aspect Investment ”.  link  

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MilitiaMan:    Nailed it. They are to or have used the secondary market to sell bonds that are of excellent class!! Again, the issue of paying salaries has the instruments to facilitate payments. They will come from the liquidity provided not only by the automated border fees but also bonds, mortgages, other financial obligations, etc.. Secondary markets are international!!

Think deeply now, BUNA platform, Euroclear platform,  European Bank of Reconstruction and Development, Iraq Trade Bank,  AYSCUDA, WB, IMF, BIS, etc..

Each and everyone noted above has Iraq, SA and the AMF regionally, on the radar and they are pinging big time!!    GO GO GO Time ~ MM 

. “Money in the world to finance the budget, especially the aspect Investment ”.

Samson:  A parliamentary committee denies the government's intention to reduce employee allocations

12:40 - 11/22/2020

The government program control committee denied, on Sunday, that there is an intention by the government to reduce employee allocations, stressing that the next session will witness hosting the head and members of the Federal Service Council to discuss the issue of localizing all salaries of employees.

The deputy head of the committee, Muhammad al-Baldawi, said in a statement to / the information /, that “the government did not send to parliament for a moment the budget of next year 2021 to parliament and the information available to me that the government has so far completed the investment budget only”, denying “the existence of any intention of the government to reduce employee allocations and if What I thought about, it will include hospitality allowances for special degrees.”

Al-Baldawi added, "The House of Representatives will host in its next session tomorrow, Monday, the president and members of the Federal Service Council to discuss the issue of resettlement of all employees' salaries, including regional employees, and make a job number for each employee for the purpose of sorting aliens and multi-salaries by unifying a database."

 He pointed out that "the Kurdish forces in the House of Representatives collected signatures and more than one signature to link the region's employees to that base."

It is noteworthy that a member of the Parliamentary Finance Committee, Jamal Cougar, said today, Sunday, that the government would resort to reducing employee salaries allocations, in light of the ongoing financial crisis, and the government will also resort to activating collection, taxes and direct deduction from the currency auction.

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MilitiaMan:   “It is noteworthy that a member of the Parliamentary Finance Committee, Jamal Cougar, said today, Sunday, that the government would resort to reducing employee salaries allocations, in light of the ongoing financial crisis, and the government will also resort to activating collection, taxes and direct deduction from the currency auction.” 

MilitiaMan:  Reducing salary allocations means they are to be adjusting the exchange rate. Just like we talked about earlier. Reducing the 000s from the exchange rate means effectively having to pay less currency as the value of it is greater!! Imo . Again, they are not going to tax at a program rate!! Imo ~ MM

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Samson:  Economist: The government will surround the country financially and enter it into a state of real bankruptcy

08:51 - 11/23/2020

The economist, Wissam Al-Tamimi, said that the government will besiege the country economically and financially because of its ill-considered policies, pointing out that Iraq will enter a phase of real bankruptcy if the situation remains as it is without finding real solutions.

Al-Tamimi told "the information", that "the government going towards deducting employee allocations in the budget for next year will lead to a great public ferment, which may lead to the complete eradication of the government."

He added, "The government's tendency to impose taxes, especially on the currency auction, will lead to an increase in the dollar’s ​​exchange rate in the next stage, in addition to imposing these taxes will lead to higher prices in general."

And that "Iraq will suffer greatly in the coming period in light of the current government’s policies and lack of financial control or an alternative plan to borrowing, as the situation remains unknown in the coming year in light of the failure to deliver the budget to the House of Representatives.   LINK

Samson:  Integrity stops the waste of 1.3 billion dinars after the seizure of 13 fraudulent transactions in Anbar's retirement

10:00 - 23/11/2020
The Investigation Department of the Federal Integrity Commission announced, on Monday, that it was able to seize fraudulent transactions in the Anbar Retirement Authority, explaining that the process resulted in stopping the waste of (1,300,000,000) billion dinars.

The authority said in a statement that the information received, a copy of it, that “The field team for following up the departments of the Ministry of Finance in the Anbar Investigation Office of the Authority, which moved to the National Retirement Authority - Anbar Branch, was able, after checking the pension transactions and the letter of the validity of issuing the medical report Related to those transactions issued by the Governorate Health Department, from the seizure of (13) fraudulent transactions. She added that "the team succeeded in this process by stopping the waste of (1,300,000,000) billion dinars, pointing out that all the priorities related to the matter have been seized." To take appropriate legal action.

On February 5, the authority announced the seizure of an employee in the National Pension Authority - Anbar Branch. For his manipulation and forgery in the files of victims of terrorism.  LINK

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Samson:  MP: We will never allow the government to rely on borrowing during the 2021 budget

13:08 - 23/11/2020
The deputy of the Al-Fateh Alliance, Muhammad Karim, confirmed, on Monday, that it is not possible to rely on foreign loans to pay salaries during the coming year, indicating that the government is obligated to implement a clear economic plan to reduce dependence on oil revenue.

Karim said in a statement to "the information" that "Parliament is waiting for the government to hand over the budget law for 2021, hoping that it will assume responsibility for carrying out clear economic reforms."

He added that "the political forces absolutely reject the government's reliance on paying employees' salaries in the next year, and they must urgently find alternatives to the oil sector."

Karim pointed out that "dozens of non-oil revenues can achieve huge financial resources if they are administratively organized and corrupt people are prevented from accessing them to solve the salary crisis."   LINK

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Samson:  Parliamentary economy calls for fortifying investments in Iraq with "international agreements"

23rd November, 2020

A member of the Parliamentary Economic and Investment Committee, Mazen Abdel Moneim Al-Faili, called on Monday to approve and fortify investments in Iraq with "solid international agreements," stressing the need to keep them away from regional and internal conflicts.

Al-Faily said to Shafaq News, "Iraq is in a global economic war between several countries, which has negatively reflected on attracting   sober global investments that match the foundations it possesses and the many opportunities available in all vital sectors."

Al-Faily pointed out that Iraq "has become an arena for economic conflicts between great countries and neighboring countries, as well as internal political conflicts and influences between rejection and acceptance, which requires freedom from all internal and external conflicts and the creation of an appropriate environment for the reconstruction of the country in a manner that suits the aspirations and aspirations of the people."  

Iraq has been suffering for many years from the delay and disruption of global investments for various reasons and reasons, most notably the security factor, political and international conflicts, as well as Iraqi laws in the investment sector, which were considered by specialists to expel investment opportunities.  LINK

MilitiaMan and KTFA Members "Things Are Not Alwasys As They Seem" 11-22-2020

KTFA:

MilitiaMan:  Interesting time this is for.. I suspect that the conditions that Iraq is to emerge from have been the bedrock of deals being done with Saudi Arabia, AMF, G7 et al... imo ~ MM

Samson:  Plasschaert will brief the Security Council on developments in Iraq next Tuesday

11/22/2020 15:03:59

 The representative of the United Nations in Iraq, Jenin Blasharat, will brief the UN Security Council on the country's developments next Tuesday.

UNAMI's statement, of which {Euphrates News} received a copy, stated that Plasschaert "will provide a briefing at the UN Security Council session on developments in Iraq and the United Nations Assistance Mission for Iraq (UNAMI)."

Plasschaert's briefing can be followed at 6 pm Baghdad time.

The session will be broadcast live on the website {click here } and the full text of the UN Special Representative's briefing will be published in Arabic and English on:

The website .. Click here
Facebook .. Click here
Twitter .. Click here

LINK

*Don961:  Deleting 3 zeros from the currency ... Parliamentary finance is suspended and determines the size of the cost and the economic effects

5,582 Politics 11/21/2020 19:50   Baghdad Today - Baghdad

Recently, a proposal to delete 3 zeros from the Iraqi currency has been put forward to provide a cash value in the Iraqi market in order to face the financial crisis, which has abounded proposals aimed at reducing its effects, especially with regard to low oil prices and the lack of liquidity in the state to finance salaries and basic expenses.

The reporter of the Parliamentary Finance Committee, Ahmed Al-Saffar, said in an interview with (Baghdad Today), that "deleting zeros from the currency does not affect financially and does not get the country out of the crisis, and it is only a psychological aspect." (opinion)

He added, "Deleting zeros will affect the government because it will destroy the currency it has and issue a new currency without zeros, and this will be in printing houses outside the country and this will cost the government a lot, and the current time is not suitable for this procedure."(opinion)
 
As for the member of the Finance Committee, Ahmed Hama, he said to (Baghdad Today), "Exiting the financial crisis is not only by deleting zeros from the Iraqi currency because the economic crisis is basically economic," indicating that "deleting zeros from the Iraqi dinar needs to print a new currency."(done already, imo) ~ MM

He pointed out that "the cost of printing a new currency of different denominations of currency up to 60 trillion dinars, and this is difficult for Iraq to bear at the present time, because each denomination or every banknote of the currency requires 6 cents to be issued again."(done already, imo) ~ MM

The Iraqi economist Khalifa Al-Zubaidi says in an article that deleting zeros from the local currency is the process of replacing the old currency with a new one whose price is less than the old currency by the number of zeros that will be deleted. For example, deleting three zeros from the Iraqi currency means that one dinar from the new currency is equivalent to 1000 dinars from Old currency ”.

He adds, "The idea of ​​deleting zeros from the local currency began after the First World War. In 1923, Germany deleted 12 zeros from its currency, followed by Hungary in 1946 by deleting 29 zeros from its currency, as well as China in the same year where 8 zeros were deleted, and in our time, several countries have done such things." Step like Zimbabwe, Sudan, Venezuela, Argentina, Brazil, Netherlands,Turkey and other countries, according to the University of North Carolina, that 70 countries have done this procedure since 1960, when 19 countries got rid of zeros once and ten countries twice, and the country that got rid of zeros the most is Brazil, where it took this step six times and got rid of 18 zeroes, which means that some countries They succeeded in this step and other countries failed. (some failed some did not fail) ~ MM

Therefore, they took this step more than once without success. Iran may be the last country that decided to delete 4 zeros from its currency after the significant decline in the value of the toman against the dollar, although some believe that there will be no positive impact on the Iranian economy because of Economic sanctions imposed on the country ”.

Al-Zubaidi asserts that “the aim of this step is to control inflation and high prices and facilitate the buying and selling process, especially when dealing in millions, which creates many problems for citizens carrying large quantities of currencies, difficulty reading prices, and math errors in reading the large number of zeros, as was the case in Turkey. In addition to the costs of printing it.

He points out that “The Netherlands succeeded in this work in 1960 because it put in place a strict policy to control prices and liquidity. Turkey also succeeded in this measure, with the testimony of the International Monetary Fund, for taking effective measures to combat inflation and was able to raise the value of the Turkish lira through the economic reforms taken by the government in all fields, which It led to economic stability in the country and it got rid of printing large numbers of its currency, as well as making it easier for citizens to read numbers and commodity prices. On the other hand, there are many other countries that failed when taking such a step in dealing with the economic problem, especially inflation, such as Zimbabwe, Argentina and Brazil, as inflation continued to rise due to failure to take correct economic measures, which forced these countries to take this step more than once without any positive results and resorting to some of them in The end is to abandon the local currency and use hard currencies in local transactions. (Successful attempts have been done.) ~ MM

He adds, "Therefore, in general, it can be said that deleting zeros from the local currency without meaningful and effective economic reforms in all economic sectors will be negative and have no positive impact on the national economy and does not contribute to reducing inflation, although some may delude some that prices have decreased and the purchasing power of the currency." Got better.

Accordingly, it can be said that what was mentioned above applies to the Iraqi economy, and this step will have a negative impact if it is not carefully planned and is associated with effective economic measures, revitalizing national industry and supporting the private sector to advance the national economy. link  

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MilitiaMan:  I look at this article as being another fair warning of the change that is to come. Delta may see this, as I do?

If we look closely, there is a negative slant to this piece and a positive one too. Lets think about the efforts and what we see in the news and in the FA ( final article) thread that support not only are they thinking about the deletion of the zeros, it has been in the works for many years now and is about to be launched. imo

Why you may ask? Well, the amount of interconnectivity going on in Iraq is astounding this year.

We have for instance seen the BUNA Platform connect regionally 03/2020, as noted by the AMF. They have a platform to trade currencies of locally and internationally.

There is the negotiation with AYSCUDA Customs Modernization System by the Finance Minister of Iraq the other day that is in play, as well. They both abide by International Best Practices and Procedures.  Both have international implications!!

Then there is the World Bank having an MOU to mange assets from back in 08/2020 (link below is not the MOU, but, supports all that we see needed to go to a market economy.) and now this month we have the BIS working in cooperation with Iraq to increase investment opportunities in foreign reserves.

With the likes the WB and BIS and supported by the IMF, we can see that they are fully aware of the past failures and successes when it comes to deleting three or more zeros. 

They will and are going to be managers in the success of Iraq, or they wouldn't have come all this way. It imo will not fail with the citizens. They by know know what the focus is. It is actually deleting three zeros from the exchange rate, which reduces the number (as they show) from 1000 to 1, which then begets 1/1 and with that comes great purchasing power, effectively anyway.. imo ~ MM

The links below show that the above has support and they show that this is not pie in the sky times.. It is about to be go go go  (less three zeros.) time!!!... imo... ~ MM

https://english.aawsat.com/home/article/2146836/amf-launches-buna-payment-platform

https://alforatnews.com/news/%D8%A7%D9%84%D9%85%D8%B1%D9%83%D8%B2%D9%8A-%D8%A7%D9%84%D8%B9%D8%B1%D8%A7%D9%82%D9%8A-%D9%88%D8%A8%D9%86%D9%83-%D8%A7%D9%84%D8%AA%D8%B3%D9%88%D9%8A%D8%A7%D8%AA-%D8%A7%D9%84%D8%AF%D9%88%D9%84%D9%8A%D8%A9-%D9%8A%D8%AA%D9%81%D9%82%D8%A7%D9%86-%D8%B9%D9%84%D9%89-%D8%B2%D9%8A%D8%A7%D8%AF%D8%A9-%D8%A7%D9%84%D9%81%D8%B1%D8%B5-%D8%A7%D9%84%D8%A7%D8%B3%D8%AA%D8%AB%D9%85%D8%A7%D8%B1%D9%8A%D8%A9

https://www.worldbank.org/en/news/press-release/2020/05/04/iraq-structural-reforms-critically-needed-to-manage-a-multi-faceted-crisis

"With this context, it has become critical for Iraq to embark on a comprehensive forward-looking economic reform agenda to enable private sector led growth, diversification and job creation. Such a program could be based on two pillars: i) Tackling cross-cutting impediments to private-sector led diversification through fiscal sustainability and economic (e)governance, financial sector reforms, business environment reforms, Improving human capital outcomes, as well as social protection and labor system reforms; and ii) Improving governance and promoting private sector participation in selected productive sectors like agriculture and agri-food Industries, electricity and gas.

The Iraq Economic Monitor also includes a Special Focus section that highlights the importance of digital transformation for Iraq and the urgency behind it. The benefits of a robust digital economy are numerous. Leveraging the digital economy will help Iraq improve economic opportunities, particularly for its youth, and thus address the demands of citizens.

The digital transformation of the Iraqi economy will require economic reforms and longer-term development priorities along the five pillars of the digital economy framework by ensuring affordable access to high-speed internet, achieving widespread adoption of cashless payments, delivering digital government services and improving access to data, upskilling youth with technological know-how, and scaling up the digital entrepreneurship ecosystem. An example of the relevance and urgency of digital transformation has recently materialized with the deployment of innovative digital solutions in the fight against the COVID 19 pandemic across the globe. "

https://www.ktfalways.com/forum/frank26-daily-posts/frank26-11-20-20/page-2/

• Changing the exchange rate provided that it is accompanied by a series of measures to control prices and protect the poor and middle-income classes

• Impose electronic payment, reduce the use of cash payment to a minimum, and encourage e-commerce

Don961:  The Finance Committee sets the red lines available to the government to finance the deficit: borrowing ... withholding salaries or printing a currency?

2020-11-22 Yes Iraq: Baghdad

Today, Sunday, the Parliamentary Finance Committee identified the available red lines for the government for the purpose of financing the budget deficit, between borrowing or deducting salaries or printing a currency, while it indicated that the 2021 budget will be mostly operational.
Committee member Jamal Cougar said in televised statements, that "the 2021 budget will be mostly operational and brief, and will not include appointments or investment projects." “.

He added, "We will give the government the right to borrow within the budget law, but the amount of the loan will be determined."

A member of the Parliamentary Finance Committee confirmed, "It is impossible for the House of Representatives to vote on a new loan outside the budget."

He added that "his committee gave the government an opportunity to act, and refused to deduct salaries, and said that the deduction should be from special and higher ranks and not ordinary employees."

And he added, "Any deduction will directly affect the citizen, especially in light of the difficulty of providing services by the government," adding that "the deduction and the reduction of the exchange rate against the dollar areamong the red lines for parliamentary finances, and it is not possible to approach them." LINK

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 MilitiaMan:  There it is again.. The reduction of the EXCHANGE RATE TO THE DOLLAR!! 1000 less three zeros,  1/1..?? lol 

Look they are not going to do deductions to salaries with out increasing their purchasing power, imo. This is the second article in 24 hours along the lines of reduction of the exchange rate, i.e., deletion of the zeros.

The BIS is the top dog for Central Banks of the world and they were just yesterday talking about investment opportunities in foreign reserves...  Think about that.

They reduce the exchange rate and those that have foreign reserves are going to get a massive boost in value..  The citizens will get purchase power. It is a win win all around.

They largers players in the world know that.. imo. So, this sort of educational data may very well be the final straw for them to let go.. They released salaries early today or will by tomorrow so I hear. There is a lot of coincidences going on or are they? imo~ MM

"He adds, "Therefore, in general, it can be said that deleting zeros from the local currency without meaningful and effective economic reforms in all economic sectors will be negative and have no positive impact on the national economy and does not contribute to reducing inflation, although some may delude some that prices have decreased and the purchasing power of the currency." Got better."

Don961:  The closing statement of the G20 summit affirms the commitment of its leaders to lead the world into an era of strength and sustainability

2020-11-22 Yes Iraq - Baghdad

The G20 published a final statement on its remote summit chaired by Saudi Arabia yesterday and today.

The Final Statement of the G20 Summit:

The group's leaders are committed to leading the world into an era of strength and sustainability

Extending the initiative to suspend debt service payments until next June

Emphasizing the mandate of the United Nations agencies, especially the Health Organization, while studying the need to enhance their effectiveness in coordinating and supporting the global response to the pandemic

The group will spare no effort to ensure that all countries receive Covid-19 vaccines at an affordable price

Determined to continue to use all possible policy tools to protect lives, jobs and incomes, support economic recovery and enhance the resilience of the financial system

We support enhanced IMF support to help address specific challenges facing small developing countries

We have renewed our commitment to ensuring a stronger financial safety net at the core of the International Monetary Fund

Supporting the multilateral trading system is as important now as ever

The group is determined to support developing and least developed countries, and recognizes the special challenges of Africa and developing countries

The group reaffirms its continued political support for the reforms needed for the World Trade Organization

We reiterate the importance of an orderly transition from LIBOR to alternative reference rates before the end of 2021   LINK

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MilitiaMan:  Interesting piece out and it took place in Saudi Arabia. Isn't that where new borders were opened? Like the ones that were closed for 3 generations!! Yes, I believe that to be true. Tae note of the bold portion of the:  multilateral trading system..  -  LIBOR alternative.. 

Those items are key to success imo.. They are very serious and may be in jeopardy if no action is taken accordingly. The IMF knows this and states as such.. Bold moves look to be instore for the world and they just met today in SA.. 

In regard to emerging markets..  "These consist of Indonesia, Egypt, seven other emerging countries, and two countries not previously listed before, specifically Iraq and Mongolia." ~ MM

From conventional to unorthodox policies

Despite these actions, the outlook for emerging market economies remains clouded by considerable uncertainty. Chief among many risks is the possibility of a more prolonged health crisis, which would hurt more lives and could have dire economic consequences. Confronting a more severe downturn will be challenging because most emerging markets entered the current crisis with limited room for traditional fiscal, monetary, and external policy support. And much policy room has already been used up by actions undertaken in recent months.

Dwindling policy space may force some countries to take recourse to more unorthodox measures. From price controls and trade restrictions to more unconventional monetary policy and steps to ease credit and financial regulation. Some of these measures—which are also being implemented by some advanced and low-income economies—have significant costs, particularly if used intensively. Export restrictions, for example, could seriously distort the multilateral trading system, and price controls hamper the flow of goods to those who need it most.

The effectiveness of other unorthodox policies will depend on the credibility of the institutions; for instance, whether a country has a track record of credible monetary policy. As we navigate the contours of the ongoing crisis, little time is available to properly analyze the risks and benefits of these actions in a careful manner.

https://blogs.imf.org/2020/08/06/covid-19-response-in-emerging-market-economies-conventional-policies-and-beyond/

Don961:  Next January salaries ... Parliament's finances put forward a hypothesis that prevents late disbursement

2,802 Economie 2020/11/22 17:26 Baghdad Today - Baghdad

The MP of the Saeron Alliance, Mahmoud Al-Zajrawi, commented today, Saturday, on Prime Minister Mustafa Al-Kazemi's fear, days before, about delaying the payment of salaries for the first month of the New Year 2021 in the event of delay in approval by Parliament.

Al-Zagrawi told "Baghdad Today", "The House of Representatives is awaiting the 2021 budget prepared by the government and delaying its arrival will delay its approval in Parliament, of course, because its formulation is part of the tasks and powers of the Iraqi government (the executive authority).

And that "the government, until the moment, has not sent us the 2021 budget bill until it is passed, and its approval requires time for reading and discussions, as well as making amendments and changes according to the powers of Parliament."

Earlier, the Parliamentary Finance Committee suggested that the same problems that were encountered in the distribution of salaries for the second half of the year 2020 in the distribution of salaries at the beginning of next year, as a result of not sending the budget on time, indicated that the government began implementing a system to verify the real number of employees in Iraq.

The reporter of the Finance Committee, Representative Ahmed Al-Saffar, said in a press statement, "The government started the borrowing process according to the fiscal deficit financing law voted on by Parliament in the middle of this month, and we have not recorded any legal violation of the procedures so far."

He added, "The House of Representatives monitors borrowing in terms of determining the party that will be resorted to by obtaining the sums of money, the amounts of installments and the interest resulting from the debts."

He hinted at "the possibility that the parliament will use its constitutional powers to confront any violation of the law by the government in borrowing."

He pointed out, "The next stage will be devoted to the 2021 budget, especially with a large deficit that we must deal with in scientific and realistic ways that enable us to meet the state's needs, especially salaries."

Al-Saffar pointed out, "Article 11 of the Financial Management Law obliged the government to send the draft budget before mid-November, and what is happening now will contribute to delaying the approval of the law later."

He stressed, "The Parliamentary Finance Committee needs time to discuss every paragraph contained in the budget law and then submit it to a vote, and these discussions may include meetings with the government to find out its opinion about every amendment we make to the project."

Al-Saffar believes, "the possibility of the same problems related to delaying the distribution of salaries at the beginning of next year as a result of not sending the budget on time."

He stressed, "The government has actually started implementing some reform provisions that will maximize the state's resources, including the initiation of an automation system at border crossings and its goal is to reach real revenues."

And the decision of the Parliamentary Finance Committee indicated, "To start implementing the system to verify the real number of employees in Iraq through the biometric system."

Al-Saffar indicated that "global economic conditions in general may change as a result of the close access to a vaccine for Corona virus, and therefore this will revive oil prices."

He believes that "the crisis of the current year, until it is overcome, must be an example for the Iraqi government." He concluded that "the budget is still with the government and we hope that it will speed up sending it to the parliament, which needs about 45 days for approval."

And last Thursday, the financial expert, Mahmoud Dagher, revealed, 2020, the size of the financial reserve of the Central Bank of Iraq, after the government borrowed twice to provide salaries for employees.

Dagher said in an interview with (Baghdad Today), that "Iraq now has 55 billion dollars from the reserves of the Central Bank of Iraq distributed at home and in international banks," indicating that "the value of the loan from the reserve during the year 2020 was $ 29 billion, which is a large number globally."

He added that "it is wise to manage things properly in the coming year to reduce borrowing in the event that oil prices remain in their current position," noting that "there is no validity to expectations of the implementation of hard currency in the next year 2021, which is very unlikely."

And that "there is a slight impact on the value of the Iraqi dinar, globally."

Dagher pointed out that "the financial reserve in the Central Bank of Iraq must not be less than 30 billion dollars so that the value of the Iraqi dinar is not affected at the global level."

Sources revealed earlier that the government funded the salaries of employees for the last months of the year 2020 by borrowing from the Central Bank of Iraq. LINK

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MilitiaMan:  So they look to have borrowed twice from the CBI to pay salaries, yet they had not paid them on time? They are implementing reforms at the borders, too.!!!

Was the CBI working with the secondary markets in order to help pay salaries or did they deplete the reserves some to pay them? Then, if so why late in October, then early pay in November? Seems odd that they there is so many varying views on these all elusive salary payments.

Were the citizens told that there is a reality coming (RI) and they were given proof? I don't know. But, with all the things we see of late (deleting of the zeors twice in 24 hours.), suggests things are not always as they seem.

Did the CBI become successful in getting the chunky money into the banks so that the CBI would loan the GOV the money to pay salaries? Borrowing from the citizens so to speak with interest?

The interesting article out about the meeting in SA and it mentions multilateral trading system and LIBOR. LIBOR is about interest rates, over night lending facilities, etc.. imo.

 I showed a link to the IMF site that talks about the multilateral trading system. Big moves are thought to come for emerging markets and Iraq is one the newer ones added to the list.. imo ! We shall see... ~ MM

KTFA Members "News and Views" Sunday 11-22-2020

KTFA:

DELTA:  FROM IRAQI TV:  "Deleting 3 zeros from the currency .. Parliamentary finance  determines the size of the cost and the economic   effects"

Don961:  Deleting 3 zeros from the currency .. Parliamentary finance is suspended and determines the size of the cost and the economic effects

 Recently, a proposal to delete 3 zeros from the Iraqi currency has been put forward to provide a cash value in the Iraqi market in order to face the financial crisis, which has abounded proposals aimed at reducing its effects, especially with regard to low oil prices and the .lack of liquidity in the state to finance basic salaries and expenditures

The reporter of the Parliamentary Finance Committee, Ahmed Al-Saffar, said in an interview with (Baghdad Today), that "deleting zeros ".from the currency does not affect financially and does not get the country out of the crisis, and it is only a psychological aspect

He added, "Deleting zeros will affect the government because it will destroy the currency it has and issue a new currency without zeros, and this will be in printing houses outside the country and this will cost the government a lot, and the current time is not suitable for ".this procedure As for a member of the Finance Committee, Ahmed Hama, he told (Baghdad Today), "

Exiting the financial crisis is not only by deleting zeros from the Iraqi currency because the crisis is mainly economic," indicating that "deleting zeros from the Iraqi dinar needs to print a ".new currency

He pointed out that "the cost of printing a new currency of different denominations of cash amounts to 60 trillion dinars, and this is difficult for Iraq to bear at the present time, because each denomination or every banknote of the currency requires 6 cents to be ".issued again

The Iraqi economist Khalifa Al-Zubaidi says in an article that deleting zeros from the local currency is the process of replacing the old currency with a new one whose price is less than the old currency by the number of zeros that will be deleted. For example, deleting " .three zeros from the Iraqi currency means that one dinar from the new currency is equivalent to 1000 dinars from Old currency

 He adds, "The idea of deleting zeros from the local currency began after the First World War. In 1923, Germany deleted 12 zeros from its currency, followed by Hungary in 1946 by deleting 29 zeros from its currency, as well as China in the same year where 8 zeros were deleted, and in the present day several countries have done such things."

Step like Zimbabwe, Sudan, Venezuela, Argentina, Brazil, Netherlands, Turkey and other countries, according to the University of North Carolina, that 70 countries have done this procedure since 1960, when 19 countries got rid of zeros once and ten countries twice, and it is considered the most country that got rid of zeros is Brazil, where it took this step six times and got rid of 18 zeros, which means that some countries

They succeeded in this step and other countries failed. Therefore, they took this step more than once without success. Iran may be the last country that decided to delete 4 zeros from its currency after the significant decline in the value of the toman against the dollar, although some believe that there will " .be no positive impact on the Iranian economy because of Economic sanctions imposed on the country

Al-Zubaidi asserts that "the aim of this step is to control inflation and high prices and facilitate the process of selling and buying, especially when dealing in millions, which creates many problems for citizens carrying large quantities of currencies, difficulty reading .prices, and mathematical errors in reading the large number of zeros, as was the case in Turkey."

In addition to the costs of printing it " He points out that "the Netherlands succeeded in this work in 1960 because it put in place a strict policy to control prices and liquidity. Turkey also succeeded in this measure, with the testimony of the International Monetary Fund, for taking effective measures to combat inflation and was able to raise the value of the Turkish lira through the economic reforms taken by the government in all fields."

It led to economic stability in the country and got rid of printing large numbers of its currency, as well as making it easier for citizens to read numbers and commodity prices. On the other hand, there are many other countries that, when taking such a step, failed to address the economic problem, especially inflation, such as Zimbabwe, Argentina and Brazil, as inflation continued to rise and so.

For not taking correct economic measures, which forced these countries to take this step more than once without any positive results, and some of .them eventually resorted to abandoning the local currency and using hard currencies in local transactions

He adds, "Therefore, in general, it can be said that deleting zeros from the local currency without meaningful and effective economic reforms in all economic sectors will be negative and have no positive impact on the national economy and does not contribute to reducing inflation, although some may delude that prices have decreased and the purchasing power of the currency

Accordingly, it can be said that what was mentioned above applies to the Iraqi economy, and this step will have a negative impact if it is not carefully planned and is associated with effective economic measures, revitalizing the national industry and supporting the private sector to .advance the national economy   link

DeepWoodz:  Imo...as foretold. So even though the negative aspect is included, the information is still educational for the citizens. The desire could be to smokescreen outsiders from knowing what’s about to happen while at the same time educating the citizens. 

Don961:  IMO ...  "this step will have a negative impact >>>IF IT IS NOT CAREFULLY PLANNED>>> perhaps  it may indeed have been carefully planned

SCollie:  Just as Kuwaiti did the day prior to their currency MOON Shot!!!

Samson:  Finance launches November financing for all institutions

22nd November, 2020

The official Al-Sabah newspaper reported, on Sunday, that the distribution of employees' salaries will begin today

The newspaper stated, "The Ministry of Finance launches financing for the month of November for all ministries and departments, and the distribution of salaries will start from Sunday
 
The Ministry of Finance announced, on Thursday (November 12), the launch of employees' salaries for the month of last October, after Parliament voted, at dawn that day, on the borrowing law to cover salaries   LINK

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Samson:  The World Bank warns the G20 not to ignore the debt problems

22:30 - 21/11/2020

World Bank President David Malpass warned the leaders of the G20 countries that failure to reduce debt burdens on some countries may lead to an increase in poverty.

Malpass added that this failure may cause a recurrence of default, which happened chaotically in the 1980s and said that he was happy with the progress that had been made in the issues of transparency and debt relief, but he demanded more.

He added, "Debt challenges have become more frequent, as in Chad, Angola, Ethiopia and Zambia, where the outlook for poverty levels remains bleak, in the absence of permanent debt relief."  LINK

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Samson:  Al-Fatlawi: Iraq has huge budgets outside of oil revenues and the pockets of the corrupt are taking possession of them

09:03 - 22/11/2020

Representative of the Al-Fateh Alliance, Fadel Al-Fatlawi, stated that Iraq has huge budgets outside of oil revenues that are captured by the pockets of the corrupt, pointing out that maximizing revenues depends on fighting corruption, activating the Chinese agreement and increasing the productive capacity of the refineries.

Al-Fatlawi said to "the information", "A lot of money was seized by the corrupt and put in their pockets, and there are huge budgets outside oil revenues that have not been exploited."

He added, "The government must fight corruption and recover money from the pockets of the corrupt in order to revive the budget and eliminate the deficit in it."

And that "the Chinese agreement must be done correctly, without being ignored, in addition to maximizing resources through oil derivatives inside the country and developing refineries to increase their production."   LINK

Samson:  Erbil foils the transfer of millions of counterfeit dinars to Karbala

22nd November, 2020

The Police of Erbil Governorate, the capital of Kurdistan Region, announced on Sunday that it had seized more than 10 million counterfeit dinars in the possession of three people.

In a statement received by Shafaq News Agency, the police said that the crime-fighting department, Shaqlawa office, had arrested three people of Arab nationalism with the names (H.J.), (FHB) and (MAH), and they were seized in their possession 10 Millions, and 39 thousand dinars are counterfeit.

The statement added that the three defendants are residents of Karbala Governorate, and during the investigations they confessed that they had bought the counterfeit currency from Sulaymaniyah Governorate, and that they intended to exchange it in the local markets of Karbala.

The statement added that an investigation file was opened for them, and they were placed in detention by judicial order, in accordance with Article 281 of the Iraqi Penal Code.  LINK

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Samson:  The Trade Organization Calls On The G20 To Provide Financing To Developing Countries

22nd November, 2020

Deputy Director General of the World Trade Organization Alan Wolf affirmed that the G20 must provide trillions of dollars in trade finance for developing countries, to ensure the global economy recovers from the Corona pandemic.

"It is important to leverage trade to help secure the economy, facilitate trade in essential medical supplies, and reform the institutional framework for global trade," Wolf told the G20 leaders.

"When crops do not move and factories are disrupted across the developing world, the global recovery will be delayed," he added, noting that the trade finance initiative must be viewed as an essential part of improving the prospects for economic recovery.

Wolf stressed that close cooperation between international financial institutions, the World Trade Organization and large commercial banks will be necessary to provide trillions of dollars in the required financing.   LINK

Samson:  The Ministry of Interior dismantles a network of fraud in the pension authority, which has cost the treasury more than 30 billion dollars a month

22nd November, 2020

The Iraqi Ministry of Interior announced on Sunday that it had penetrated and dismantled a large fraud network in the Public Retirement Authority, noting that the network’s members are accused of fraud and forgery crimes that cost the state more than 30 billion dinars per month, paid in pension salaries to those who are not eligible.

In a statement received by Shafaq News Agency, the ministry said that the Federal Intelligence and Investigations Agency in the Ministry of Interior, with judicial approvals and follow-ups, managed to penetrate and dismantle a fraud network in the General Pension Authority consisting of 29 accused (employees and commentators) in the authority.

The statement stated that these defendants "carry out fraud and deceit the law, which is summarized in issuing retirement IDs for citizens and granting them salaries of up to (8 million Iraqi dinars) and large financial differences that reach an average of (260 million Iraqi dinars) without legal entitlement."

The statement continued, "As a result, a working group was formed in the intelligence agency, which was able to penetrate the fraud network and document its criminal operations with sound and image and the personalities that manage these operations."  LINK

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Samson: Pompeo: Other Arab countries will join the peace agreements with Israel

22nd November, 2020

Today, Sunday, US Secretary of State Mike Pompeo confirmed that other Arab countries will join peace agreements with Israel, and Washington will continue its efforts to bring peace to the region, to avoid the threat of Iran in the Middle East

He said in an interview with Al-Arabiya: “I am fully confident that other countries will join what the Emiratis, Bahrainis and Sudanese have done, and thus the correct place of Israel among countries will be recognized,” noting that they “will do this because it is the right thing to do for their nation. Because of the increasing prosperity and security of their country. He added, "This would not have been possible without the leadership and participation of the United States in determining the risks in the Middle East from Iran

Pompeo also said: "The United States seeks to achieve peace in the region, taking into account the threat posed by Iran," as he put it, adding that "the countries of the region (meaning the Gulf and Israel) have realized the common threat posed by Iran. He stressed that the United States "would like the Palestinians to deal with Israel," adding that "their leadership rejected President Trump's speech, a vision for peace and according to Pompeo, the US policy toward Iran has not changed and has been consistent throughout Trump's time in office

Pompeo said during the interview: "We have fulfilled every commitment we have made to the countries of the Middle East, we have protected Americans, and we have formed partners who want to establish a partnership with the United States of America."  He stressed that policies and duties will not change during the transition period, “My responsibilities do not change.” Pompeo said, “I still have a responsibility every hour and every minute to defend the American people ... and we will do so until the last minute

On Saturday, Saudi Foreign Minister Faisal bin Farhan Al Saud confirmed Riyadh’s support for full normalization with Israel, provided that the rights of the Palestinians are guaranteed. It is noteworthy that Israel signed peace agreements and normalization of relations with the UAE, Bahrain and Sudan, under American auspices  LINK