MilitiaMan Saturday Night "The EndGame is Looking to be Upon Us" 12-26-2020

KTFA:

MilitiaMan:  The end game is looking to be upon us. They have entered a state where they need critical recalibrations of economic policies. Think of those policies as being exchange rate oriented.

The IMF has told us they are to change the exchange rate within this fiscal year. That runs out on or before 12/31/2020 imo.

We can show in the Final Article Thread here at KTFA that there is and was a collaboration to devalue the currency to get currency out of the market place. But, keep in mind that that was their intentions for not just the recent short term, but  far longer than just over this last month or so,  it goes back months to years at this point.

 They have been working at financial inclusion for quite some time. They tell us that they have or have had 60 trillion IQD in circulation.  That point needs some serious reflection, as it has been a work in progress to get it out of circulation.

We can see now with hind sight what has happened. By what they tell us now we can see they are moving into the next phase and have the support of the IMF..

We now should see after that recent devaluation down to 1460 from 1190 the next phase to kick in and a re-instatement or revaluation to an internationally acceptable currency exchange rate. One that is probably already approved and just about ready to be exposed.

The 2021 budget is said to be in the HOR tomorrow, as it was delivered today after having it voted on by the COM. The theory is that, the 2019 FMLA and 2020 budget will have been used to get the 2021 numbers.. If so, then the numbers would be telling us a very important story.. 

So, the challenging juncture they are in was do to the devaluation to get more currency out of the market prior to the next phase..

The IMF is giving reassurances that they are there to support their next move. imo. A very welcomed site be sure.. ~  MM

Don961:  International Monetary: We are ready to support reform efforts in Iraq

Saturday 26 December 2020  Baghdad: Morning

The head of the International Monetary Fund’s mission in Iraq, Toker Mirzoyev, welcomed the cabinet’s approval of the draft general budget bill for the fiscal year 2021, while announcing the fund’s readiness to support reform efforts. The Council of Ministers voted to approve the federal budget for the fiscal year 2021, at the extraordinary session held last Monday, headed by Prime Minister Mustafa Al-Kazemi.

Pandemic and oil prices

Mirzoyev said in a statement to the mission received by "Al-Sabah", Friday: "The Corona pandemic and the sharp decline in oil prices and production have exacerbated economic weaknesses in Iraq," and pointed out that "due to the acute shortage in financing public finances and the challenges facing the payment of external payment obligations." "And local, including wages and pensions, must be made a critical recalibration of economic policies in order to maintain the stability of the economy."

He continued, “We welcome the approval of the Iraqi Council of Ministers to the draft general budget bill for the fiscal year 2021, which, according to our understanding, envisages implementing important financial reforms,” noting that “despite the difficulty of these reforms, along with the reduction of the currency exchange rate that was announced recently, they constitute major steps. The importance of helping to reduce large imbalances in the external balance of payments and public finance, and to ensure economic stability. 

Increase remittances to the poor

The statement clarified that «the Iraqi government has developed plans to significantly increase cash transfers directed to the poor and to enhance health-related spending, which are necessary to mitigate the impact of the Covid-19 crisis on the most vulnerable groups».

He pointed out that the short-term plan should be followed by more subsequent reforms, which include deeper structural reforms, in order to strengthen the resilience of the economy, expand the fiscal space to include the processes of reconstruction and social spending of critical importance, and lay the foundation for higher growth rich in jobs and more inclusive. For everyone in the medium term ».

He declared, "The International Monetary Fund is ready to support the reform efforts made by the Iraqi government at this challenging juncture."   LINK  

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He added, "The draft budget is still up to the General Secretariat of the Council of Ministers to audit it in coordination with a special committee from the Ministry of Finance and the International Monetary Fund to update the Iraqi dinar exchange rate before the end of the fiscal year," indicating that, "according to government estimates that we have informed about the price of a barrel of oil." In the general budget it will be between 42 - 43 dollars.

LINK

Twig said: It is known that the monetary mass in circulation is about 60 trillion dinars, which is not available at the Central Bank of Iraq, the banks and the public, and it is a large monetary block compared to the economic transactions of the Iraqi economy and that a large proportion of this block suffers from compactness and therefore this does not help the Central Bank of Iraq in drawing a policy Effective cash calling on  the central bank to delete three zeros or gradual deletion of zeros to make the value of the dinar appear at a higher value and that the processes of evaluation and monetary balance will be formed quickly in the market economy. "

He added: The monetary mass can become approximately 15 to 25 trillion dinars, and the value of the new dinar converges to the value of the dollar, which facilitates the process of calculation and allows small and new denominations of cash to appear in the money market.

LINK

"The exchange rate of an economy affects aggregate demand through its effect on export and import prices, and policy makers may exploit this connection. Deliberately altering exchange rates to influence the macro-economic environment may be regarded as a type of monetary policy."

"A member of the committee, Ahmed Hama Rashid, said in a radio interview, "The budget bill has reached the inclusion of the House of Representatives, and according to the bylaws, it is read first, and then it is studied by the Finance Committee and a second reading is read."

Samson:  Al Rasheed Bank stops the deposits and withdrawals of saving accounts

26th December, 2020

Al-Rasheed Bank announced, on Saturday, that it will stop withdrawing and depositing savings accounts until January 3, due to the end of the fiscal year and for the purpose of implementation only.

The bank’s media office said in a statement received by Shafaq News that "the suspension includes saving accounts only and for the purposes of applying the accounts."

He added, "The bank's branches were instructed to deal with emergency withdrawals during the aforementioned period with appropriate flexibility."  LINK

MilitiaMan:  The stopping of withdrawals and deposits seems to be very interesting in that the timing of it is so close to the end of the fiscal year. The IMF told us that there is to be an expected change to the exchange rate of the IQD before the end of the fiscal year.

Well the devolution was one change, however, it is a change that will not get the country into a market economy. The White Papers are about getting them into a market economy. So, a big change is coming and this halting if you will of savings accounts  in respect to withdrawals and deposits tells me that they just locked up plenty of that chunky money I mentioned in an earlier post today.

So those that are wanting to game the newer exchange rate dollar ratio, can't anymore until next year..  The thinking is too, is that this next fiscal year starting as of 01/01/2021 or for the first banking day being 01/03/2021 may or should be with a new mechanism that will require smaller denominations, just like the told us.. IMO ~ MM

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Economic expert Raad Twig called , the central bank to delete the three zeros from the dinar to strengthen the local currency.

Twig said: It is known that the monetary mass in circulation is about 60 trillion dinars, which is not available at the Central Bank of Iraq, the banks and the public, and it is a large monetary block compared to the economic transactions of the Iraqi economy and that a large proportion of this block suffers from compactness and therefore this does not help the Central Bank of Iraq in drawing a policy Effective cash calling on  the central bank to delete three zeros or gradual deletion of zeros to make the value of the dinar appear at a higher value and that the processes of evaluation and monetary balance will be formed quickly in the market economy. "

He added: The monetary mass can become approximately 15 to 25 trillion dinars, and the value of the new dinar converges to the value of the dollar, which facilitates the process of calculation and allows small and new denominations of cash to appear in the money market.  LINK

KTFA Members "Saturday Iraq News" 12-26-2020

KTFA:

Samson:  Al Rasheed Bank stops the deposits and withdrawals of saving accounts

26th December, 2020

Al-Rasheed Bank announced, on Saturday, that it will stop withdrawing and depositing savings accounts until January 3, due to the end of the fiscal year and for the purpose of implementation only.

The bank’s media office said in a statement received by Shafaq News that "the suspension includes saving accounts only and for the purposes of applying the accounts."

He added, "The bank's branches were instructed to deal with emergency withdrawals during the aforementioned period with appropriate flexibility."   LINK

Samson:  Parliamentary Finance announces the arrival of the budget bill to the House of Representatives

26th December, 2020

The Parliamentary Finance Committee announced, on Saturday, the arrival of the budget bill to the parliament.

A member of the committee, Ahmed Hama Rashid, said in a radio interview, "The budget bill has reached the inclusion of the House of Representatives, and according to the bylaws, it is read first, and then it is studied by the Finance Committee and a second reading is read."

He added, "After the second reading, the remarks of MPs and political blocs are taken," indicating that "the Finance Committee needs from 20 days to 30 days to approve the budget."    LINK

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Samson:  Parliamentary committee: 30% of the contents of the 2021 budget will be amended

16:00 - 24/12/2020

Member of the Parliament's Regions Committee, Mudar Al-Karawi, revealed, on Thursday, that 30% of the contents of the 2021 budget will be changed before voting on it.

Al-Karawi told Al-Maalouma that "the 2021 budget has many observations, especially with the increase in the exchange rate, fuel, and the reduction in employee allocations and other points," noting that "it is difficult to pass these points without valuable adjustments that contribute to supporting large segments of Iraqis who will be affected by them."

He added, "30% and perhaps more of the budget's contents will be amended in the House of Representatives, and there will be inclusion of alternatives proposed by the financial and economic committees to maximize non-oil revenues instead of government solutions," considering that "the budget is perhaps the most difficult in the history of the Iraqi state after 2003 due to the sensitivity of the situation." The economic and financial affliction that the country suffers due to years of accumulations and mistakes.

Al-Karawi pointed out to “the necessity of involving Iraqi economic competencies and even international centers in searching for ways out of the financial and economic crisis afflicting the country and ensuring that there is a national political framework supportive of decisions that save the country's economy and push it away from any severe crises and get rid of the crisis of complete dependence on oil revenues. As a major source of budget.   LINK

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Don961:   Financial crisis ... Fact or fabrication ?!

 SAT, 26-12-2020, AM 1:15  KARRAR AL-ASADI

Written by: Qassem Al-Ajrash

For the purpose of approaching any problem, and then trying to solve it, it is necessary to begin by describing it in a realistic and accurate manner, determining its size, anticipating the ceiling of its development, probing its temporal ranges, its potential effects, and its societal repercussions, and after that it is confronted with appropriate tools, and appropriate people are assigned to the confrontation, so that the treatments come smoothly. Realistic, not on the way the Iraqi state is facing the current complex crisis ...!

The state, with its legislative, executive, judicial and presidential elements, and with it the confused Iraqi media, did not reach the nature of the complex problem in which we found ourselves, so all the elements approached it, confused, confused and indiscriminate. actually; And because of the exacerbations of our complex crisis, the economic and social conditions in Iraq seem to go towards more complexity, so that difficult questions about the future of stability in the country have become proliferating, searching for those who understand them simply by understanding, after we despair of having someone to answer them!

We have not heard from the Central Bank and the Ministry of Finance so far, what is the size of the monetary mass in circulation, and what is the amount of sums deposited in government banks, and the same in private banks, and the same in banks in the Kurdistan region; By citizens and companies, to clarify the size of the saved sums; By citizens in their places of residence..and on the basis of those numbers; Can we know the effects of the devaluation of the Iraqi dinar on the citizens.

In addition, even the blue jin does not know the amount of money saved by citizens in Iraqi dinars, in their homes or outside the banks. Rather, the governor of the Central Bank cannot measure the size of the Iraqi monetary mass, and he also does not know the amount of foreign exchange, and in whom ?!

The sin of the apparatus that manages our financial and economic affairs is that it has over-borrowed without heartache, and the state, due to the many factors that we know, such as corruption, waste and mismanagement of expenditures, accumulated billions of dollars of debt; Which these agencies cannot disclose, either because of the huge numbers, or because they do not know the size of the debt at all, and the Central Bank also played an important role in the growing volume of debt, by borrowing from banks at very high interest rates and lending to the government at much lower rates.

The calamity, which only a few have seen, is that the World Economic Bulletin, issued on 12/21/2020 in New York, revealed that the value of the Iraqi dinar was tampered with, and it was a major fraud by the Iraqi government, not to the global economy and global financial markets, that is. A role in reducing its market value, as it still maintains its value, which amounts to $ 100 = approximately 120,000 Iraqis, in all global financial markets.

The global bulletin said that the Iraqi dinar has not been devalued, and that what was issued by the Iraqi stock market lacks economic science and expertise.

Words before peace: We ended up with a very large stock of debt, which has become unsustainable, knowing that the problem of bad debts is that the creditors who lent money want to recover it, so we have to face reality, and accept that losses have occurred. Everyone accepts some concessions, until we find the most  reasonable and acceptable solution.  LINK

Samson:  Parliamentarian warns: The employee will lose 25% of his salary due to the devaluation of the dinar

26th December 2020
A member of the Parliamentary Oil and Energy Committee, Ibtisam Muhammad Darb revealed, on Saturday, that raising the dollar price will cause the employee to lose 25% of his salary, noting that this measure negatively affected financial transactions in all Iraqi governorates, including the Kurdistan region.

Darb said in an interview with Shafaq News, that "the high exchange rate of the dollar will lead to the employee losing 25% of his salary, in addition to the rise in the prices of goods and goods, which burdens the citizen twice." "The citizen is the only victim, but it is possible that the 2021 budget includes solutions to the economic crisis," she added.

Darb pointed out that "the decline in the value of the Iraqi dinar against the dollar will negatively affect not only the governorates of Iraq, but even between the Kurdistan Region and Baghdad as well," adding, "The citizen suffers mainly from the deterioration of the economic situation, and this crisis complements his suffering."

And on the negotiations between Baghdad and Erbil, Darb explained, "There are negotiations between the governments of Baghdad and the Kurdistan Region regarding the export of oil and its revenues, and these negotiations are still ongoing and have not reached an end despite the existence of preliminary understandings regarding the delivery of the region to at least 250 thousand barrels per day, to Baghdad." He pointed out that "the 2021 budget confirmed this amount, but there are several problems that have not been resolved so far, and negotiations between the parties are continuing, and no issue has been resolved in this particular file."

It is noteworthy that economists, MPs and traders warned of the negative repercussions on the low-income and poor due to the devaluation of the Iraqi dinar against the dollar, and since the Central Bank of Iraq announced the adoption of the new exchange rate for the dollar, several demonstrations condemned this measure.   LINK

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Samson:  Representative economy: 70% of the Iraqi people will be affected by the raising of the dollar and the 2021 budget

18:01 - 12/26/2020

The Parliamentary Economic and Investment Committee confirmed, on Saturday, that more than 70% of the Iraqi people from the poor and middle class will be affected by the government's measures to raise the dollar and draft the 2021 budget.

A member of the Economic Committee, Nada Shaker, told Al-Maalouma that "the government is supposed to send the draft budget for 2021 last October, but it sent it at the end of the year in a short time and full of errors."

She added that "more than 70% of the poor and middle class of the Iraqi people will be affected by the current crisis due to raise the price of the dollar and the budget of 2021," noting that "the budgets of Iraq's previous 70 trillion does not exceed dinars now that the parliament was surprised by the shadow of the financial and government crisis is the budget of 150 trillion Dinar".

Shaker explained that "the poor class of the people cannot be held responsible for financial mismanagement and financial corruption," stressing that "adjustments will be made to the budget and reduced to ensure that the salaries of employees are not compromised."  LINK

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Don961:  Iraq sends $ 50 billion annually abroad ... Reducing the dinar is an "opportunity" to solve the most important file through "two methods"

2020-12-26  Yes Iraq: Baghdad

 Iraq stands in front of a clear challenge, to take advantage of the step to reduce the value of the dinar against the dollar, to address the issue of imports that cause a drain in the country's hard currency abroad.

 The Parliamentary Services Committee announced today, Saturday, its intention to raise the slogan of the national product first during the next year, indicating that the high exchange rate of the dollar is a catalyst for reliance on the local product.

The head of the committee, Walid al-Sahlani, said in a press statement followed by "Yes Iraq", "The committee will raise the slogan of the national product first next year, because the economic situation that is going through Iraq, especially after the high exchange rate of the dollar, will give an incentive to adopt the local product, and its quality is a guarantor of the marketing ability for him".

He added that "the asphalt plants, the private sector and self-financing companies, especially the companies linked to the Ministry of Industry, need to support the government through loans, and the creation of an economic vision, in addition to the issue of employment."

He pointed out that “a lot of imported construction materials depend on the local consumer’s conviction with the quality of this foreign product, on the one hand, while the second side requires state institutions to set specific controls on the quality condition to promote local production,” demanding that “the local product is of high quality and within acceptable conditions. “.

He stressed "the importance of dealing with crises with proper management, to make great achievements, as there are aluminum and petrochemical plants and many stalled projects."

He pointed out that "disrupting projects is either unjustified or deliberate routine, so we notice strategic projects such as the petrochemical project, which is one of the important projects in Basra Governorate, which was supposed to employ hundreds of manpower, and the iron and steel project."

40-50 billion dollars sent outside Iraq

For his part, the economist Mustafa Jabbar Sanad revealed in a clarification that "Yis Iraq" saw, "Iraq imports goods between 40 to 50 billion dollars annually, and the largest countries from which it imports: - 1- Turkey, 2- China, 3- Iran, About 40 billion dollars.

He pointed out that "the most imported commodities are: foodstuffs, cars, medical materials, petroleum products, clothes, construction and electrical materials, telephones and accessories." Some cannot. ”

Solutions and Recommendations

Sanad issued several recommendations, including that “the state must grant investment opportunities diligently and aggressively to target the most important, most and most expensive import materials, for the private sector and investors, support them and remove them from the routine circle.

In addition to "concluding bilateral and quadruple agreements with the trading countries, to agree on a formula for the basket of currencies, and it is possible to benefit from the oil sold to China, which is estimated at 250 to 350 million barrels per year, to liquidate transactions and support the establishment of alternative import laboratories."  link

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Samson:  Security forces arrest a suicide bomber intending to blow himself up on New Year's Eve in Baghdad

26th December, 2020
The National Security Agency announced on Saturday that it had arrested a suicide bomber and three others who were preparing to carry out an attack during the New Year holidays in the Iraqi capital Baghdad.

The agency said in a statement today that its detachments in the governorates of Salah al-Din and Diyala managed to dismantle a terrorist detachment belonging to the so-called Diyala sector, and to arrest its four members, including a suicide bomber, who intends to blow himself up during the New Year holidays in Baghdad, according to judicial orders.

The statement indicated the arrest of (the detachment commander, transporter, and soldier). As they recorded their statements fundamentalist and admitted that they had received instructions to destabilize and cause a security breach in the capital during Christmas; They have been referred to the competent legal authorities to take the necessary measures against them.   LINK

KTFA Members "Friday News" 12-25-2020

KTFA:

Samson:  Traders Are Heading To Sue The Fiscal And Central Currency Over Devaluation

24th December, 2020

Commercial circles across Iraq are heading towards registering a lawsuit against the Minister of Finance and the Governor of the Central Bank of Iraq for approving the law of devaluation of the Iraqi currency.

The trade expert and a consultant to the Baghdad Chamber of Commerce, Salah Al-Shami, said that the decision to devalue the currency does not carry any positive trends, but rather harms the national economy and the commercial sector in particular.

He pointed out that all the measures adopted by the affected business family are in accordance with the law in force in order to reverse this decision, which paralyzed the commercial movement and inflicted great losses on the Iraqi merchant.

He indicated that the type of damage that the national economy was subjected to will be determined in detail, so that everyone can be informed of the great imbalance that the economy was exposed to as a result of devaluation.   LINK

Samson:  Parliamentary integrity: 20 billion dinars, losses from the bank every day from the currency auction, profits go to banks

19:03 - 12/24/2020

On Thursday, the Parliamentary Integrity Committee revealed daily losses to the Central Bank of more than 20 billion dinars, with profits going to banks, indicating that the silence of the Central Bank is not explained in good faith.

"There are 5 Iraqi traders led by a businessman who are behind the monopoly of the dollar in the Iraqi market and then pumping it and manipulating prices, and the central bank is unable to control them," said a member of the Integrity Committee, Khaled Al-Jushami.

"The cash liquidity as a result of the dollar's profits in the auction selling the currency with the five dealers is equivalent to the bank’s sales in the five-day currency auction," Al-Ghashami said, pointing out that the silence of the Central Bank cannot be explained in good faith.

He added, "More than 20 billion dinars a day, profits go to the banks, and the bank loses them from auction sales of the currency that was supposed to go to the state treasury."  LINK

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Don961:  The struggle of the dollar and the dinar is "getting hotter": determining the duration of the end of the "exchange rate hike" and revealing "steps" that will sabotage the "government goal"!

2020-12-24  Yes Iraq - Baghdad

 Two measures that could have saved more money than the difference in the exchange rate of the dinar against the dinar were revealed by an economist, who pointed out that the Ministry of Finance requested that it be set at 1600 dinars to the dollar.

Economist Nabil Al-Marsoumi said - a televised statement monitored by "Yass Iraq": "The difference that is currently apparent between the central bank and the market rate will continue until the budget is passed due to the state of uncertainty and uncertainty because everyone is waiting for the Iraqi parliament's position on the 2021 budget, and what happens in terms of the difference between the exchange rate." The official exchange rate is caused by speculation and through which the exchange offices are making huge sums of money and it may be less severe soon.

He added that "some believe that the decision to raise the exchange rate of the dollar is technical and was done through the central bank, although it is political and was made by a government decision from the Ministry of Finance." Parliamentary statements throw more uncertainty and lead to repercussions in the market.

And he talked about government financial decisions in a deeper way, saying that “the timing of the recent government measures is very wrong, no country in light of the Corona crisis and the global recession has devalued its currency and deducted from the salaries of its employees and all countries have a layer of quantitative management packages and pumped money and aid to the public and private sectors.”

He believed that "raising the exchange rate to reduce the budget deficit, according to what the government deems, is unsuccessful, because it will not provide more than 4 billion dollars for the budget, and this could have been covered through two measures presented by the Ports Authority and rejected by the Ministry of Finance."

He explained that "the two procedures require that customs duties be collected from imported goods upon opening documentary credits, and that fees are collected upon granting import licenses, even according to the financial obtained the same value of the money it wanted by reducing the dinar value and ending the problem of money laundering."

He pointed out that "raising the dollar exchange rate will not support the local product for three reasons, the first of which is that most of its requirements and raw materials are imported from abroad, and because there is dumping of goods in neighboring countries in Iraq, and thirdly, the cost of production in our country is double the cost in those countries."

He pointed out that "reducing the exchange rate of the dinar and imposing taxes on salaries reduced its value in some segments by 50%, because the reduction included 25% of the salary and the exchange rate difference reduced its value by 25% as well."

Earlier, a member of the Parliamentary Finance Committee, Jamal Cougar, confirmed today, Wednesday, that the House of Representatives has the power to cancel or amend the article on tax withholding, as well as with regard to deducting employee salaries allocations.

Cougar said in televised statements that "Parliamentary Finance will study the draft federal budget law for the country for the year 2021 accurately and amend the loopholes if they are contained in the draft law."

He added that "Parliament has the power to cancel or amend the article on the deduction of part of the employee allocations or with regard to tax deductions."

And that "the high rates of deductions, we will work to reduce them, provided they do not affect the employee significantly."

Last Tuesday, the reporter of the Parliamentary Finance Committee, Ahmed Al-Saffar, spoke about the most prominent remarks on the 2021 budget bill, and while noting that the budget is inconsistent with the country's economic reality, he suggested returning the bill to the government.

Al-Saffar said, in a televised interview, "Until now, the 2021 draft budget has not been sent to Parliament, which will take 4-5 days to study the project legally, after which the project will be transferred to the Finance Committee and we may use our powers to reduce spending."

Al-Saffar added, "This budget is inconsistent with the financial and economic situation in which the country is running, because it has high spending of 150 trillion dinars, according to the leaked version, which is very exaggerated," indicating that "most of the paragraphs of the leaked draft are confirmed today that they are the same final draft."

He continued, "The price of a barrel of oil on which the budget was based is illogical because it was $ 42 while the current price of a barrel was $ 52," explaining that "lowering the exchange rate of the dinar is supposed to be supported by a competitive local product, which is not there, and thus the prices of imported goods have risen." Covering the entire market. ”

The reporter of the Finance Committee in Parliament confirmed that “the 2021 draft budget and if it does not comply with the government program and the economic reality, it will be returned to the government,” indicating that “we need 30-45 days to study and approve the project if there are no internal and external political interference, and it may disrupt it. More".

He suggested that "Parliament will not accept the passage of more loans in the 2021 budget," again calling for the need to "reduce public spending and raise the price of a barrel of oil in the budget, because every dollar can add one trillion dinars annually."  LINK

Popeye7:  Imo, it seems that they acknowledge they are in a bit of a pickle... There is only one thing that will get them out of this financial mess, and it has been set up during the last few years by the Fab 4 to be resolved in that way... When is the only question?..

Don961:  Parliament "closes the door" permanently on the possibility of restoring the previous dinar rate: adjusting salary taxes ... the last hope

2020-12-25  Yes Iraq: Baghdad

 The House of Representatives ended the debate about the possibility of restoring the previous exchange rate of the dinar against the dollar, thus ending any hope regarding the amendment or cancellation of the decision to devalue the Iraqi currency against the dollar, which has become a fait accompli. Or modified.

 In order to eliminate any aspirations or popular anticipation to amend the exchange rate in the 2021 budget by Parliament, the Parliamentary Finance Committee issued a statement on the exchange rate of the dollar, absolving its liability and powers from interfering with it.

The Media Department of the House of Representatives stated in a statement, that "the Parliamentary Finance Committee confirmed that determining the exchange rate of the dollar is a governmental matter and it is exclusively within the government's authority, since the government is the one that draws and implements the financial and monetary policy."

The statement added, "The inclusion of that price in the draft federal budget law for 2021, is to calculate the value of oil revenues and international loans that are calculated on the basis of the dollar, and are converted into the Iraqi dinar depending on the exchange rate."

He pointed out that "mentioning that price in the budget is not intended to acknowledge or not, but to be approved in the calculation of revenues and expenditures only."

Last hope

After closing the door permanently on the possibility of restoring and canceling the decision to reduce the value of the dinar against the dollar, the last hope remains on the possibility of Parliament intervening to amend the paragraphs related to salaries from deductions and taxes, including exempting salaries of 750 thousand dinars from taxes and deductions, and making them start from one million dinars.

A member of the Parliamentary Finance Committee, Shirwan Mirza, said, "After each budget, the parliament makes huge and massive adjustments to the budget, especially the surplus numbers, and equates them with the groups affected by them before voting on them." Without a comprehensive political consensus, otherwise no agreement will pass.

For its part, a member of the Finance Committee, Ikhlas Al-Dulaimi, said that "the 2021 draft that was sent from the government contains many deductions and taxes that will burden the citizen."

And she added, "Among the deductions that have been imposed is a deduction of 5% of the salaries of special grades, a percentage that does not affect their high salaries."

Al-Dulaimi explained that "the Finance Committee will not include any employee with deductions whose salaries range from 750 thousand or less, instead of 500 thousand."   LINK

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Don961:  61 trillion of total funds in Iraq .. 7 trillion of them are only in the hands of the state: Where is the rest of the money spread and what can it be made?

2020-12-25  Yes Iraq: Baghdad

 A numeric statistic revealed the amount of money outside the banking system in Iraq, which amounted to 88%, while only 12% of the money trades in banks and the rest is accumulated in the hands of citizens, merchants and others.

The ratio of the amount of cash outside the banking system to the total cash issued from the Central Bank reached 88%, as the total cash issued reached 61 trillion dinars, while the value of the cash outside the banking system amounted to 54 trillion Iraqi dinars, which means that 7 trillion Vat is traded inside banks. .

The economist Manar Al-Obeidi considered that this matter "indicates the lack of confidence of the money owners in the banking sector."

He continued, "Regardless of the reason for the reluctance of the money owners to the banking sector, the question that comes to mind is who owns these funds, what are the numbers of their owners and how much do they represent from the entire Iraqi people, and why do these funds not contribute to building private industrial and service projects?"

He added: “The most important question is where is the income tax on these funds? The value of which is no less than 1.6 trillion dinars in the worst cases, and can the Iraqi government benefit from these funds in support of the poor classes through the establishment of a solidarity fund based on donations and the contribution of these funds to Providing the basic necessities for this class, which increases in misery and deprivation day after day. ”

He indicated that "only one trillion is able to provide basic necessities for more than 4 million citizens for a year, if we assume that the monthly need of the poor citizen is around 20 thousand dinars of basic food supplies and that the food basket according to the United Nations classification is equal to about 5,000 dinars per week.

Al-Obaidi called on "the Iraqi government and all non-governmental bodies to adopt the Takaful Fund project and work to contribute to alleviating the shoulders of the poor and simple Iraqi citizen, as well as calling for the tax authority to work on improving the mechanisms of collecting money from major capital instead of imposing it on the employee, the owner of the garment and the barber."

The government and government banks are working to attract citizens' money and the huge liquidity available outside the banking system and hoarded in homes, as the Rasheed Bank and Rafidain issue calls from time to time to open savings accounts, while offering high financial benefits of up to 4%.

The Iraqi government plans to withdraw about 8 trillion dinars of these funds by offering bonds for sale in the next year’s budget to take advantage of the high financial liquidity available in homes and traded outside the banking system.   LINK

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Don961:  Dollar and peoples

Thursday 24 December 2020 Adnan Abu Zeid

The dollar has become the talk of Iraqis, after economic treatments conducted by the government and the central bank, while enlightened by history, is aware of the political and social role of this global currency, which has settled many times, the future of political systems, and the fate of economies.

However, developing countries seemed to be most affected by the fluctuations of the dollar and its value, because they are unable to borrow in their poor local currencies, and they are forced to pay off their foreign debts with it, but the dollar turns into a real tyranny in countries that are able to manage an economy that attracts foreign investment and boosts the pace of internal growth.

Iraq, one of the lagging countries in the administrative and economic system, where the observer touches the huge numbers of workers in redundant government jobs, as well as huge numbers of ineffective government companies, whose affiliates receive salaries, while university graduation policies give birth to huge numbers of certificates At a time when the private sector is suffering from marginalization through stifling regulations and regional competition, university owners are demanding government jobs.

The crisis of the relationship between the dinar and the dollar, in Iraq, has its experiences in other countries. It suffered from the collapse of its national currency, so it resorted to financial tricks such as quantitative easing or printing more Of cash.

Currency devaluations against the dollar are still occurring in many countries, as Turkey and Vietnam have resorted to reducing employment and foreign imports.

Indonesia and Argentina granted tax breaks to return money held abroad. Zimbabwe issued dollar bonds to support deficient foreign exchange holdings. OPEC members cut oil production to restore petrodollar revenue, and dollarize oil and other commodities.

And Iraq tried to exchange the dollar for the euro, in an attempt to insult the American currency during the era of Saddam Hussein's regime. Iran is seeking to deal in currencies other than the dollar, to ease the impact of sanctions against it, but the problem is that most of the trading partners prefer the dollar. In its attempt to revive the economy and defeat corruption, India decided, in 2016, to begin to halt the circulation of currencies in denominations of 500 and 1000 rupees, and the Prime Minister urged the people to stand firm. 

And both Ecuador and Zimbabwe resorted to "dollarizing" their economies, through the official use of the dollar in all transactions. Hong Kong has steadily pegged its currency to the dollar, making it a spin in the orbit of US monetary policy.

During the Cold War era, in the mid-forties to the early 1990s, communist regimes responded to the policy of financial strangulation by Western countries by floating more government loans on companies. Egypt and Argentina experimented with urgent direct devaluations early on. 

Indonesia has also decided to activate domestic investment for the purpose of returning assets from abroad and attracting them with tax exemptions. 

What is still worrying is that citizens of developing countries, especially the wealthy among them, do not trust local currencies, which made the economies of these countries de facto hostage to the dollar. 

All of these mechanisms, even if they contribute to recovering money, are not a panacea, nor will they be a substitute for the structural reforms that fail in many countries due to the inability to persuade the people of sacrifices.    LINK

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Don961:  Washington evacuates its embassy in Baghdad of civil servants

- 5 Hours Elapsed

Diplomatic sources said that the United States has completed the process of evacuating civilian employees from its embassy in Baghdad in conjunction with the return of Katyusha rockets to reappear in its vicinity, and the approaching first anniversary of the killing of Iranian General Qassem Soleimani and his Iraqi aide Abu Mahdi al-Muhandis, the former field commander of the Popular Mobilization Forces in an American raid in January 3rd, 2020.

This month, the US embassy in Baghdad was attacked twice, using Katyusha rockets fired by Iraqi Shiite militias affiliated with Iran.

The sources indicated that part of the US embassy staff in Baghdad temporarily returned to the United States, and the other part was transferred to the safe city of Erbil in northern Iraq, while the part responsible for managing vital activities in the Iraqi capital was transferred to an alternative location.

On Wednesday, the US Central Command announced that "the recent missile attack on the Green Zone in Baghdad was almost certainly carried out by a rogue militia group backed by Iran."

US President Donald Trump warned the Iranian regime against launching any attack targeting Americans in Iraq, as the first anniversary of the assassination of Iranian General Qassem Soleimani approaches in a US drone strike near Baghdad airport.

"Our embassy in Baghdad was hit by several missiles on Sunday," the outgoing president wrote on Twitter, an attack that left only material damage. "Guess where it came from: from Iran," he added.

He continued, "Now we hear talk of other attacks against Americans in Iraq," directing "friendly advice to Iran: If one American is killed, I will hold Iran responsible." "Think about it carefully," he warned.

In response to Trump, Iranian Foreign Minister Mohammad Javad Zarif wrote in a tweet Thursday, "Exposing your citizens to danger abroad will not distract attention from the catastrophic failures at home."

Zarif attached a picture of Trump's tweets published years ago, in which he said that former President Barack Obama was going to start a war with Iran to be re-elected, and a screen image of a graphic that is supposed to reveal the degree of danger of the Corona virus pandemic in the United States.

The Iraqi Security Media Cell announced the launch of eight Katyusha rockets in the Green Zone in which the US embassy is located on Sunday night, and the embassy’s defenses intercepted the missiles.

The US embassy and other foreign military and diplomatic sites have been targeted by dozens of missiles and IEDs since the fall of 2019.

Western and Iraqi officials blamed militant groups, including the pro-Iranian "Hezbollah Brigades", for the attacks.

In the aftermath, the US command in the Middle East also condemned the firing of “21 missiles almost certainly launched by Iranian-backed militias” and “which were clearly not intended to avoid civilian casualties.”

The leadership also warned in a statement that the United States would hold Iran "responsible for the killing of any American citizen" in an attack attributed to such "rogue armed groups."

And US Secretary of State Mike Pompeo accused Tehran of being responsible for the bombing.

The commander of US forces in the Middle East, General Frank MacKenzie, warned that his country was "ready to respond" in the event that Iran launched an attack on the first anniversary of Soleimani's assassination.

In response, Iran urged the US authorities Monday not to create "tension".

On January 3, 2020, Trump authorized a drone attack to assassinate the prominent Iranian general while he was in Baghdad, and this strike raised fears of escalation, but this did not happen, but tension is escalating with the approaching first anniversary of the operation, at a time when the US President entered the last weeks of his term .

Washington recently reduced its diplomatic staff in the Iraqi capital, and speculation has surfaced again in recent days about the possibility of closing the embassy permanently.

On Wednesday, a senior US administration official said that senior national security officials met at the White House and agreed on several options to deter any attack targeting US military and diplomats in Iraq.

The officials are Acting Defense Secretary Chris Miller and Pompeo and National Security Adviser Robert O'Brien, and they have agreed on a "variety of options" that will soon be brought up to Trump.

Iran continues to exploit the militias loyal to it in Iraq to carry out revenge attacks against the American presence in Iraq at a time when the Iraqi government fails to repel these violations.

Arab Newspaper   LINK

KTFA Members "News and Views" Thursday PM 12-24-2020

KTFA:

Doedee:  The devaluation was a last ditch effort to pull the 000 notes off the streets and this is the perfect opportunity to implement the project to delete the 000 from the exchange rate and then comes the RI...imo

Samson:  Baghdad’s Big Markets Are Shutting Down, And Merchants Are Entering An Open Sit-In

23rd December, 2020
Wednesday, Jamila markets closed the doors of its stores in protest against the decisions of the Ministry of Finance and the Central Bank to reduce the price of the Iraqi dinar.

Workers in the markets of Shorja, Al-Senak, Hafez Al-Qadi, Al-Rasafi, and Al-Jumhuriya Street began an open protest and sit-in until the decision is reversed.

The head of the Baghdad Chamber of Commerce, Firas Rasul Al-Hamdani, called on Tuesday for the dismissal of the Minister of Finance and the Governor of the Central Bank of Iraq, for issuing decisions that lack economic vision, and caused confusion in the market, deterioration of commercial activity and a rise in prices.

Al-Hamdani rejected, during a protest stand organized by the Baghdad Chamber of Commerce in front of the headquarters of the Central Bank of Iraq, with the participation of a number of merchants and shopkeepers in the markets and earning cash, the decision to raise the currency exchange rate that would lead to “physical damage” to the Iraqi economy, as a result of “ill-considered” decisions of the Central Bank and the Ministry of Finance. And it is reflected in the high rates of unemployment and poverty.

Al-Hamdani stressed that the country's economic leadership is "missing", noting the importance of the House of Representatives taking the oversight session as the representative of the people and stopping the decision and "dispersed" ideas. He expressed the Baghdad Chamber of Commerce's readiness to present proposals and a "profound" vision that would address the current financial crisis.

The Chamber’s president confirmed that merchants, shopkeepers and kasbah will start an open sit-in that will not end unless the decision to raise the currency’s exchange is canceled and a rational and thoughtful financial and economic policy is put in place.  LINK

Samson:  The price of the new dollar may push Kurds to quit smoking

24th December 2020

It seems that the decision to increase the price of the US dollar has been reflected in the overall life in Iraq and the Kurdistan Region, including the owners of cigarettes in the city of Sulaymaniyah, between welcoming the decision and resenting the material losses, there is light at the end of the dark tunnel.

One of the cigarette dealers in the suffocating market in Sulaymaniyah, Ibrahim Mustafa, told Shafaq News that the decision to raise the price of the foreign currency, the dollar through the Central Bank of Iraq, was correct to solve the economic crisis and provide salaries for employees despite the losses that caused us as cigarette dealers, indicating that the prices increased by 25 % For goods, since most of them are imported from global origin."

Mustafa believes that "the fluctuation of the dollar's price will not last for long," explaining that "the Iraqi government is waiting for the results of this decision and its repercussions, and the results of solutions will appear soon after the stability of the dollar and the launch of salaries that stimulate the movement of the market."

Citizen Aziz Amin, buying a pack of cigarettes, notes that "the prices have risen, as I used to buy one pack for 1,000 dinars, and now I buy it 1250 dinars, and this is a lot," adding sarcastically that "the government is trying to quit smoking."

On Monday, January 21, the Iraqi Council of Ministers approved the country's financial budget for the next year 2021 in preparation for sending it to Parliament for a vote on it, after an emergency session of the Council that lasted for three consecutive days.

The budget was estimated, the exchange rate of the Iraqi dinar at 1450 per dollar, according to what was announced by the Central Bank, while the region’s share of it was determined at about 12 percent.

Some believe that the high exchange rate of the dollar was a correct decision, especially in the field of selling cigarettes, which is a step to quit smoking and preserve human health.   LINK

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Don961:  Dr.. The appearance of Muhammad Salih *: The Central Bank of Iraq - ideas and issues about the current economic situation

12/23/2020

The exchange rate represents, in all cases, the external value of money in Iraq, and keeping it stable is one of the biggest challenges facing the monetary authority in the country to achieve stability in the general level of prices and curb inflation. 

Since its establishment more than seventy years ago, the central bank’s monetary policy has relied on an exchange system called the fixed exchange rate system or pegged to foreign currency, specifically the United States dollar. 

This is because the nature and origin of foreign exchange flows to Iraq, especially oil revenues, which are the only sovereign resource in foreign currency, and that most of them flow in one currency, the US dollar, because the oil market is a dollar market of origin and origin since the First World War and the beginning of the discovery and investment of oil in Iraq ten years after That war ended.

Regardless of this and that, the trend towards adjusting the exchange rate of the Iraqi dinar, as announced by the Central Bank on December 19, 2020, was mainly related to the problems of the deficit in the current account of the balance of payments, as the deficit in it in the year 2020 is estimated at a maximum (minus 20%).

It was reflected bilaterally as a deficit in the state budget (dual deficit), which indicates the need to adjust the exchange rate, otherwise, otherwise, the foreign reserves of the Central Bank of Iraq will be eroding, which is witnessing a gradual decline and a continuous decrease in the levels of coverage of the Iraqi dinar. 

Foreign reserves are expected to fall to 20% from their current levels of between $ 53-57 billion at the end of 2021, unless the average sale of a barrel of Iraqi oil rises to $ 65 or close to it, otherwise the exchange rate must be adjusted in the direction of reduction.

To continue reading, click on the following link to download the PDF

Dr Mudher M. Saleh-CBI

link

Don961:  Will exchange rates affect the value of exports and imports?

Wednesday 23 December 2020  Baghdad: Hussein Thahab

 Emphasizing that the decision to devalue the currency carries with it the positive and the negative, since the exchange rates are among the most important prices in the international economy, and affect the value of exports and imports for all countries, as they affect the value of foreign investment, and exchange rate policies can be used in some countries to gain an advantage Unfair trade in other countries. 

Dr. Ziad Tariq from the Ministry of Planning confirmed that "one of the functions of the exchange rate is to link the local economy with the global economy, as it is the link between global prices and local prices through three markets (commodity and service markets, financial assets markets, and labor markets)." 

Pros and Cons

Tariq said, "There is no doubt that every action has positive and negative reactions. The positive ones become available to reduce the budget deficit and the ability to pay government sector workers' dues, reduce imports and flood the local market with goods, and create the appropriate atmosphere to encourage the local product, which has become an urgent need in operating "Workers, reducing dependence on oil, and finally encouraging investments in Iraq, creating job opportunities and transferring technology." 

"The negative side is the high inflation index, as the devaluation of the local currency leads to a reduction in the value of the real income of the low-income classes," he said, "so the government should protect the marginalized, poor and low-income classes of employees from rising food and non-food prices."

Industrial branches

He added that «the rise in the exchange rate (the depreciation of the local currency) leads to an increase in the value of the country's exports and then a rise in its national income and vice versa in the case of a lower exchange rate, and in the event of a rise in the exchange rate, it will lead to the revitalization of industrial branches for export, and thus resources will be transferred to them and become Production is profitable for export, and vice versa if the exchange rate falls. 

 He pointed out that "many countries of the world resort to changing the exchange rate of their currency, according to the supreme national interest (as is the case in Turkey, Lebanon, Egypt, Iran ... etc.). Raising the exchange rate (lowering the value of the local currency) achieves some advantages, but at the same time it is accompanied by some difficulties, ”noting that“ the monetary policy in Iraq wanted the Iraqi dinar exchange rate to be relatively low to reduce inflation rates and control the economic rhythm, which was within limits. 31 percent in 2007 and to reduce import prices of goods and services, and this policy remained in place without review despite the suffering of the Iraqi economy from commodity dumping, which disrupted the work of many local companies and factories and made them unable to absorb the labor force of the newcomers and then the high unemployment rates. .

Jobs

Tariq pointed out that «everyone knows that the Iraqi economy before and after 2003 was dependent on oil resources, as this policy led to addressing unemployment by providing job opportunities in the public sector that were not necessarily productive, and the rise in the price of oil encouraged expansion by spending public money according to political desire. And not according to the economic feasibility, "indicating that" the extravagance of public spending has led to an inflated operational financial allocations at the expense of investment allocations, which necessitated the opening of the loan window to address the budget deficit over the past years. "

He said, "At the present time, the price of oil has decreased from what it was previously and has affected the government's ability to pay financial dues to the public sector and the complete inability to finance investment projects." With exorbitant consequences, the government is facing an unavoidable choice, which is to reduce the value of the Iraqi dinar against the dollar.   LINK

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Samson:  Trump issues a stern warning to Iran

24th December 2020

US President Donald Trump issued a stern warning to Iran, after targeting the US embassy in Iraq with a number of missiles. 

Trump wrote on Twitter: “Our embassy in Baghdad was hit by several missiles on Sunday, guess where they came from: Iran. Now we hear talk of additional attacks against Americans in Iraq.” 

He concluded his speech with an explicit threat to Iran: "Some friendly advice to Iran: If an American is killed, I will hold Iran responsible. Think carefully."   LINK

Don961:  An American report expects serious consequences for the devaluation of the dinar in Iraq

2020-12-24  Yes Iraq: Baghdad

 A report by the BN website confirmed that Bloomberg, on Thursday, that the devaluation of the Iraqi currency against the dollar will add the problem of inflation to the list of difficulties facing the Iraqi economy and the population who are recovering from a devastating war with ISIS. Therefore, without making significant cuts in spending, it will not be This is sufficient to prevent the occurrence of economic pain and reduce the deterioration occurring.

"The move to devalue the currency by 23 percent to reduce pressure on public finances and try to secure billions of dollars in foreign aid has already met with opposition among some parliamentarians who are afraid of provoking voter anger after mass protests that rocked the country last year," the report said.

He added, “Although Iraq is the third largest oil exporter in the world, its economy has suffered from the Coronavirus pandemic that has weakened global demand for energy supplies, and the quotas agreed upon with other oil exporters to stabilize the market also mean that the number of barrels That Iraq can pump is restricted, which narrows its options to increase revenues.

He continued, “According to the latest estimates of the International Monetary Fund, the Iraqi economy has shrunk by 11% this year, and this is better than the initial forecast of the Fund, by 12.1%, but it still leaves Iraq with the largest contraction among OPEC members subject to the production limits, which highlights His excessive dependence on oil production.

He explained that "the IMF expects that the net foreign assets of Iraq will continue to decline sharply until 2024. The debt-to-GDP ratio in Iraq is among the highest in OPEC +, a group that includes non-OPEC oil exporters such as Russia."

“There will be a need to cut the budget to gain substantial financial support,” said Mark Pohlund, senior credit research analyst at Red Intelligence. Reducing pressure at the moment, ”but it is not enough.

On the other hand, many analysts said that the devaluation was necessary to prove to international lenders that Iraq is serious about reform, but it is not sufficient to release the aid the government wants.

LINK

"Tuesday Iraq News" Posted by Samson 12-22-2020

KTFA:

Samson:  Finance: The 2021 budget is the first step in the path of economic reform

21st December, 2020

The Minister of Finance, Ali Allawi, announced that the 2021 budget is the first step in the path of economic reform

On the other hand, Minister of Planning Khaled Battal said that the volume of investment spending will be around 8 trillion dinars, indicating that the budget included the suspended train project, the port of Faw and a number of projects  LINK

Samson:  Finance Minister: We made a change in the dollar exchange rate to protect the economy

21:17 - 12/21/2020

The Minister of Finance, Ali Abdul Amir Allawi, confirmed, on Monday, that the ministry had made a change in the exchange rate of the dollar in order to protect the economy.

The minister said during a conference that followed the cabinet session, which was followed by "the information", "We have made a change to exchange the price of the dollar to protect the economy."

He added that "the revenue difference by changing the exchange rate will be allocated to support vulnerable groups in society."

And that "the budget is the first step in the path of economic reform."   LINK

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Samson:  The Cabinet decides to impose a 40% tax on the salaries of the three presidencies and special ranks

21st December, 2020

The Cabinet voted on the 2021 budget bill and sent it to Parliament for discussion and voting on it

A cabinet source told Al-Eqtisad News that "the 2021 budget bill included imposing a 40% tax on the salaries of presidents, ministers, deputies, general managers and special ranks

He noted that employees whose salaries are less than a million will not be included in the new tax

He confirmed that the cuts in the allowances were canceled and replaced with a progressive salary tax that starts at 8% and ends at 40%  LINK

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Samson:  Al-Khadra attack .. Al-Kazemi announces the arrest of suspects and security leaders

22nd December 2020

The Commander-in-Chief of the Armed Forces, Prime Minister Mustafa Al-Kazemi announced, on Monday, the arrest of a number of people suspected of bombing the Green Zone on Sunday, in addition to the arrest of security leaders.

Al-Kazemi said in a press conference, after an extraordinary session during which his government approved the budget for next year, that "yesterday's bombing of Al-Khadra is a cowardly terrorist act, and that rockets fell on Iraqis and wounded them." "We will not accept any attack on the diplomatic missions," he said, adding, "We have arrested a group of suspects in the bombing." Al-Kazemi pointed out that "officials responsible for security forces have been arrested and taken to prison after the recent bombing."

Earlier today, Monday, an informed government source reported that a committee had been formed by the Popular Mobilization Forces, headed by Deputy Chairman of the Mobilization Authority, Abdul Aziz al-Muhammadawi, known as "Abu Fadak" or "Al-Khal", to investigate the missile attacks that affect the Green Zone.

This is the first time that the Hashd have investigated the missile attacks, although some of its factions, especially those close to Iran, have been repeatedly accused of being behind the attacks at the behest of Tehran. The formation of the committee comes a day after unidentified persons fired eight Katyusha rockets at the Green Zone, most of which landed on residential buildings.  LINK

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Samson:  An Expert Warns Of Iraq's Return To International Trusteeship

21st December 2020

Legal expert, Ali Al-Tamimi, warned of Iraq's return to the international trusteeship, “Chapter Seven” of the United Nations Charter.

Al-Tamimi said that Iraq is still under Chapter VI of the United Nations Charter, and that there are financial assets with Kuwait worth 4.5 billion dollars.

He added that according to Article 50 of the United Nations Charter, states that are fighting parties under Chapter VII may request economic assistance from the Security Council. Britain and France have declared their willingness to help, and Iraq has fought ISIS, which is placed under Chapter VII under Resolution 2170 of the Security Council.

He pointed out that there is a money laundering agreement for the year 2005 related to the retrieval of smuggled money in accordance with Articles 55 and 56 of which there are fees for recovering these funds. Iraq signed it in 2007 by Law 35 of 2007, and the value of smuggled money is estimated at $ 500 billion.

And he indicated that in the US Federal Bank, $ 65 billion belong to the former regime, and it is the property of the Iraqi people that Iraq can claim in accordance with Article 28 of the Iraqi-American Strategic Agreement of 2008, which allows Iraq to request economic aid from America.  LINK

Samson:  Iyad Allawi: The Decision To Reduce The Price Of The Dinar Is Wrong And Harmful To Iraqi Families

21st December 2020

The leader of the National Coalition, Iyad Allawi, confirmed his rejection of the decision to reduce the price of the dinar against the dollar, describing it as the wrong decision.

Allawi said in a tweet to him on his Twitter account, "I warned five years ago about the deterioration of conditions and their access to the current situation and the spread of corruption, and I also called for an honest international body to supervise the dollar market in the Central Bank."

He continued, "The decision to reduce the price of the dinar is wrong, and this indicates the inability to deal with the economic crisis, as it seriously harms Iraqi families." LINK

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Samson: Two Iraqi governorates will not work next Thursday

22nd December 2020

Each of the local governments in Nineveh and Kirkuk decided next Thursday to suspend official working hours in government departments on the occasion of Christmas.

The governor of Nineveh, Najm al-Jubouri, decided in a statement today to suspend official working hours throughout the governorate next Thursday 12/24/2020 on the occasion of Christmas, with the exception of service and health departments.

The local government in Kirkuk directed the suspension of official working hours throughout the governorate’s departments on next Thursday, 12/24/2020, to celebrate birthdays and honor the genuine Christian component in the governorate. LINK

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Samson: Iraq decides to close the land borders and restaurants and ban flights with several countries

22nd December 2020

The cabinet decided to close land borders, ban flights with 8 countries, and adhere to social distancing measures

In a Cabinet statement, these decisions stated

1- Urging citizens to wear masks and apply social distancing and other prevention measures

2- Preventing travel to each of the following countries (Britain, South Africa, Australia, Denmark, Netherlands, Belgium, Iran, Japan, and any other country determined by the Ministry of Health in the future), as well as preventing entry to immigrants from them (except for Iraqis and obligating them to be quarantined for a period of 14 days. In places designated for this purpose, they are not allowed to mix with others until it is proven that they do not have the disease by examining them with PCR for a period of two weeks, and until the global and regional health situation is clear for the spread of this strain

3- The Ministry of Finance secures the first payment of (3001050) dollars, for the purpose of paying it in advance to Pfizer, as well as securing the remaining amount of the total cost of the vaccine, which is $ 15005250

4- Emphasis on the Ministry of Education and governors in all governorates not to give any exceptions regarding school days, especially private schools, in contravention of the decisions of the Supreme Committee for National Health and Safety in this regard

5- Emphasizing on the Ministry of Education to instruct the education directorates in all governorates to cooperate with the school health divisions in the health departments, to examine students and cadres within educational institutions, and to follow up the measures that must be taken in schools to limit the spread of the disease, as well as to emphasize all ministries and state departments to adhere to preventive measures, To limit the transmission of the disease and prevent any employee or references from entering state departments without wearing a muzzle

6- Close social facilities (restaurants, malls, etc.) for a period of two weeks, starting from 12/24/2020

7- Close all land border crossings, except for emergency cases  LINK

Monday Night KTFA CC with Frank26 and Team "The Kuwait and China Syndrome" 12-21-2020

KTFA:

KTFA CONFERENCE CALL MONDAY NIGHT...

With Frank26 and Team MilitiaMan, Delta, Petra and Walkingsick

Special Guest is Bluestar

PLAYBACK IS: 605.313.5163 PIN: 156996#

12-21-20.... THE KUWAIT AND CHINA SYNDROME

Frank26:  Both China and Kuwait misdirected before their Revaluations.

This video is in Frank’s and Team’s Opinion only!!!!

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

Clare:  Iraq approves 2021 budget

EconomyIraq 2021 budget

 2020-12-21 13:19

 Shafaq News / Iraq’ Council of Ministers approved on Monday the 2021 state budget.
The cabinet held special meetings headed by Prime Minister Mustafa Al-Kadhimi and approved the fiscal budget of 2021. 

No further details were shared.

A leaked draft of Iraq’s state budget sent Iraqis into a panic on Thursday as it confirmed the government’s intentions to devalue the national currency, the Iraqi dinar, and cut salaries to cope with the impacts of a severe economic crisis.

Discussions about devaluating the Iraqi dinar, which has been pegged to the dollar for decades, have been going on for weeks as the government worked to finalize the 2021 budget.
The draft law, which has to go through a parliament vote first, gives an anticipated exchange rate of 1,450 Iraqi dinars for the dollar — a significant drop from the central bank’s current official rate of approximately 1,182 dinars for $1.

Will:  also in Reuters   2021 budget  

Atpinfinity:  What is this about at the bottom of Reuters Bagdad Dec. 21, 2020

Iraq has the world’s fourth-largest oil reserves and depends on oil revenues to fund 95 percent of its national budget.

($1 = 1.45 Iraqi dinars)

Reporting by Ahmed Rasheed; editing by David Evans and Angus MacSwan

Our Standards: The Thomson Reuters Trust Principles.

Sakcorta:  Imo.... did Reuters just let the cat out of the bag?

MilitiaMan and KTFA Members "They Can DEVALUE Then REVALUE" 12-20-2020

KTFA:

Lowering the price of the currency .. What are its implications for the national economy?  LINK

MilitiaMan:  The adjustment to 1460 is a devaluation. They are not going into a market economy with that. They didn't at 1190, so with the further negative adjustment they won't either imo.. But, look closer to what the US FED RESERVE says they can do. They can devalue and revalue. A revaluation to a supported market based exchange rate can change things quickly and on many fronts.  Even, if it is less than what they expected.. The application of an exchange rate accordingly may turn things around on a dinar.. lol imo !~ MM

Will:  Why cant they enter at 1460?  Plenty of other countries in the market economy with worse rates, Vietnam one example.  

Deepwoodz:  Because in my opinion, the plan is to help their people. 1460 hurts and not help. They are expecting the glory days because that is what has been trickled down to them. 

They know their country is as rich as any. They won’t tolerate the status quo. 

It has been spelled out to them for months now and they are deserving of this blessing. Generations have had their families destroyed by war and poverty and God is in it for them. 

They are even putting up Christmas trees and talking about Christianity. 

ps...one definitive fact keeps getting overlooked..they have NSCN’s that are only good at 1:1 or better. We already know they exist, tellers have been trained, about to be released. What else is there to it?  

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TheSnod:  Brother, the significant difference is they are mainly running on the USD and it’s value in Iraq, and they need to replace it with the IQD. 

It’s a different currency context.  

They are going to move out of the auction system, so the black market manipulation will stop.  Gradate out of the dollar that is being stolen in those auctions, and move into the unsanctioned, convertible currency of the IQD. 

For it to function, the IQD has to come up or around the value of the dollar, or else all these careful plans get flushed into a devaluation nightmare.  All these countries and companies aren’t coming in for that!

That’s fundamentally why we’re in this investment to start with.

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MilitiaMan:  "According to the Federal Reserve Bank of New York, it is possible for policy makers to devalue and revalue the value of a currency, which is usually associated with pressures from the domestic market." 

MilitiaMan:  That is exactly what we have witnessed lately. The domestic market has been under pressure from the leak of the 2021 budget. There are players taking advantage of the circumstances for large profits.  The good thing is that this new adjustment to 1450 +- is going to get challenged, as it looks to violate the constitution. ~ MM

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For his part, the legal expert, Ali Al-Tamimi, said that the rise in the dollar exchange rate to 1450 in the budget law violates the Iraqi constitution and the Charter of the International Covenant, and can be challenged.

Can the decision be appealed?

Al-Tamimi explained in an explanation given to “Yis Iraq”, that “raising the dollar exchange rate to 1450 violates articles 30 and 31 of the Iraqi constitution, which require the state to provide a free and decent life and suitable income, and also this procedure violates Articles 23 and 26 of the International Covenant on Civil Rights. And political, which all countries of the world that are members of the United Nations Organization must abide by. ”

He added: “Also, the Central Bank Law, according to its Law No. 56 of 2004, is an independent body under Article 3 of this law and also the Central Bank’s instructions for the year 2017, and therefore it is the one that determines the exchange rate. Poverty read ”. LINK

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Parliamentary Finance holds an emergency meeting to discuss the 2021 draft budget

An official source in the council told Shafaq News that this proposal will be discussed in the next session of the council, in addition to other items, and it is subject to amendment.

MilitiaMan:  So they tell us the 2021 Budget is subject to amendment. Lets not forget that today the COM was to be working in the 2021 Budget for vote. In it imo it has the 2019 FMLA and the 2020 budget that needs to be sorted, as they define the 2021, a rate inclusive. imo !~ MM

The Governor of the Central Bank provided an explanation on the reasons for the high exchange rate, stressing that the bank is preparing to launch a package of measures that will achieve a shifting balance in the exchange rate for the year 2021, such as launching an initiative with an amount of 3 trillion to support low-income people, doubling the provision of hard currency in the market, and increasing interest rates. On the Iraqi currency deposited in banks.

MilitiaMan:  They are preparing a package of measures that will balance the 2021 Exchange rate. Well, it will not be a future devalued rate of 1460 be sure, imo!! That is to be challenged, rejected or amended. imo ~ M

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"Leak" annoys finance ... and a warning of "exciting" statements

 The ministry said in a statement received by Shafaq News, that “budget preparation is a complex technical process that includes many ministries, government institutions and international agencies concerned with the budget over a long period of time and cannot be fully understood without referring to the data, policies and strategies on which it is based, including the white government paper."

MilitiaMan:  The leak has put the finance department in a bad light not only with the citizens, but other govenrors

The dinar-dollar conflict in Iraq is “promised” that “decisive” measures will be taken by the Central Bank: The government is the reason and this is what will happen!

For his part, a member of the Parliamentary Finance Committee, MP Naji Al-Saeedi, said: “The governor of the Central Bank, during his hosting by the committee regarding the repercussions of the high exchange rates of the dollar towards the Iraqi dinar, indicated that this rise was caused by the government, not the central bank, considering that the dollar comes from Iraqi oil sales, which go down in the Development Fund for Iraq in the United States of America, thus the real owner of the dollar is the Ministry of Finance, which sells the dollar to the Central Bank as the government accountant.

He explained that “the Ministry of Finance, two months ago, refrained from selling the dollar in order to raise its price towards the Iraqi dinar to bridge the deficit of the general budget and achieve some developmental operations according to the government’s opinion. Therefore, the Central Bank’s justifications are that the high exchange rate is a government decision, and it was not a decision issued by the bank.” Central, ”pointing out that“ the Cabinet until this moment has not voted on the general budget, and that the Finance Committee has not received anything official from the government in this regard. ” link

MilitiaMan:  Today the the COM was to have the budget on the plate for vote. But, notice they tell us the refrained from selling the dollar in order to raise it's price to bridge the deficit in the general budget and achieve developmental operations. In other words this devalue was planned months in advance to get cause and effect. imo ! It looks to be short lived or is at least it is expected to be.. imo  Take not too, that in the below from yesterday they tell us that the offical price of selling the dinar is at 1190. Even though the CBI shows 1460.. Things that make you go hmmm!!! imo ~ MM

 “It is known that the Central Bank has set an official price for selling the dollar at 1190 dinars per dollar, while the owners of banking shops and speculators make huge profits from the difference in the price sold in the market of 133 thousand and 500 dinars per hundred dollars. , Which has been on the rise for days.

She emphasized that "this increase is temporary and the exchange rate will return to its normal rates or close to it after the end of the Christmas and New Year period, because this rise is not new to Iraq as it is affected by rumors, false news and the current conditions in the country."  LINK

KTFA Members "News and Views" Sunday 12-20-2020

Note: Happy Birthday to Frank26 and thank you for all your encouragement and dedication!!

KTFA:

The Snod:  IMHO, just consider this “water-cooler talk.”  I have no “intel.”  

I think they are going $1.46 when they move the zeroes over now.  A devaluation makes no sense in light of what we have been seeing for months and the market forces that will be involved when they go to the international phase of the White Papers.  

Most likely this is what has happened (or some of it, anyways...).  Currency values are part math, part psychology, part politics. The reason why ME currencies are high is because they are so reliant on imports for needs that higher exchange rates make them attractive to sellers.  

Iraq can’t go 3-4 immediately because they are functioning at the dollar value in their country now (1), between that and transition issues, it would be too chaotic at the forefront, BUT they have a liquidity issue because the oil prices really need to be around $60 a barrel and they project that for this coming year (WS highlighted $60 in the past).

 Because of loans that will buy them time, their asset backing, an emerging market that will hit the scene pretty quickly, you can go over 1-1 (1.46), and manage this situation as long as you really have those conversion rates out in front of the people.  

The recent information we have seems to say, they have to do some real creative financing if they are to fly on their own.  They are also so busy setting things up and getting them going that political obstruction doesn’t look like the problem.  

Instead, there seems to be a rush to get ahead of it because of the ports and international road openings we’ve seen which were part 1 of the White Papers. NTM, currency auction changes!  

We are right in the pocket!  It can only move rapidly forward now, or backwards.  And I don’t see any ISIS or Iranians doing much over there these days.  If a Biden regime was the issue, why the rush in education, meetings, and openings?  

Blessings.

GodLover:  Well, certainly as I had stated in previous posts....what the CBI just did, I was expecting. Our previous thoughts on the $ 1.45 now $1.46 rate is even more plausible imo. Further more, this move kind of excites me even more when one considers that the Iraqi citizens are now even poorer than before....puts even more pressure on the powers to be, to make a move VERY VERY quickly or things are going to get ugly with the citizens imo.

Dcdriver:  imo Maybe the next step is to delete the zero’s. Time will tell

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DeepWoodz:  Imo...Not gonna get long winded here. 

Couple things jump out....

1) if you’re upset, you have no faith in Gods sovereign control of your life.
A man plans his steps but God directs his path. 

2) if you’ve been on this site longer than a few days, you will NOW show your trust in those who work hard for free. 

3) Auctions of USD are Way Down and cost is way up. Less people to use dollars. More people to use dinars. 

4) All the bozos are having a fit....PRICELESS. 

5) Kadhimi is for the people. People need a new rate. Not the same old garbage currency. 

6) NSCN’s (Lower Denoms) have been seen and verified by at least two solid sources. These are absolutely worthless at anything short of 1:1. 

These are just a few things to remember. There are hundreds more if you’ve been studying diligently. 

Remember there is a plan and it is complex.

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Ryan1216:  Well everybody the IMF stated by the new fiscal year for a new rate and we're now in a 12 day timeframe.

Bill09:  Have you heard about the planetary alignment on the 21st of this month it will form a Christmas star. it has been 800 years since the last one, you can see it in the southwestern sky about 45 minutes after sunset without anything but your eyes.

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Don961:  Al-Kazemi declares to the Iraqis: I may lose on a personal level, but we will win all of Iraq

 Policy  ,   2020/12/20 00:33    Baghdad - Iraq today:

For the first time in the history of successive prime ministers, a true prime minister comes out to speak out to his people in a delicate and sensitive circumstance and to lay before them the facts as they are without being lost or showing the opposite of what lies behind. Prime Minister Mustafa Al-Kazimi today chose the confrontation that may cost him over The personal level, and it may be affected by it electorally, but it will stand a position that is witnessed by history and recorded in the register of the big men who write their names in the list of national leaders who have taken decisions that may have hurt them at once, but saved their countries from loss and chaos.

Yes, today he was able to tell all Iraqis what no former prime minister dared to say.

Today, the Prime Minister outlined economic measures that his government intends to take in order to save Iraq from the debts that are accumulating, corruption and its continuation that eat away any real opportunity for reform.

The measures taken may be difficult, but they will affect the country's future in order to lead a comprehensive national reform, and everyone will touch its outcomes, but with popular support and understanding for these preventive measures that the government is taking to avoid a pandemic, it will be harder and more deadly than Corona itself.    LINK

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Samson:  Officially .... the new dollar exchange rate comes into effect

20th December, 2020

The Central Bank of Iraq announced, on Sunday, that the new exchange rate has entered into force in the local markets, according to the monitoring of specialists

The exchange rate of the $ 100 bill this morning, December 20, 2020, on the Kifah Stock Exchange in Baghdad, was 145,500 dinars, as the Central Bank of Iraq began implementing the decision to raise the price of the dollar against the dinar

For his part, a banker who dealt with the central bank said this morning, "The central bank sold the dollar to exchange companies, at a new approved price, which is 1460 dinars to one dollar, meaning that the 100 dollars are 146 thousand dinars

Yesterday, the Central Bank of Iraq issued a statement officially announcing the change of the dollar’s ​​exchange rate, as it was stated in a statement that “during the last months of this year, intense deliberations took place with the Prime Minister, the Minister of Finance and the Legislative Authority, regarding the economic situation in general and the financial crisis that is going through The central bank’s board of directors held a number of meetings, some of which hosted the Minister of Finance for the same purpose

He continued that he decided to adjust the foreign currency exchange rate, as follows

 1450 dinars per dollar is the purchase price of foreign currency from the Ministry of Finance

 1460 dinars per dollar the selling price of foreign currency to banks

 1470 dinars per dollar is the selling price of foreign currency to the public   LINK

Samson:  Diyala ... Food prices rise by 10% hours after the "dollar price" application

12:18 - 12/20/2020

A government official in Diyala confirmed, on Sunday, that food prices rose by 10%, hours after the application of the new dollar price.

The mayor of Baquba district, Abdullah Al-Hayali, said in an interview with "the information", that "the high food prices fever started to loom with a noticeable rise in the prices of some foodstuffs by 10% hours after the official application of the new dollar price."

Hayali added, “Baquba, the largest city in Diyala, where the poverty rate is about 30%, not to mention high unemployment and any increase in food prices will create a big problem,” stressing, “The need for the central government and the Ministry of Trade to have plans to contain prices to avoid their rise at rates that burden the people in particular. The economic crisis in Diyala in general is very difficult.

And the Central Bank had officially started this morning to apply the new dollar exchange rate, which amounted to 1450 dinars per dollar.  LINK

OnlyLuv:  IMO: this should be proof that they can change the rate. If it can go down .. it can also go up ..

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Samson:  Parliamentary Finance: Parliament cannot force the Central Bank to change the price of the dollar

20th December 2020

The Parliamentary Finance Committee confirmed, on Sunday, the inability of the House of Representatives to force the Central Bank to change the decision to exchange foreign currency against the Iraqi dinar.

"The Central Bank is independent in its policy and is responsible for monetary policy in Iraq, while the Ministry of Finance is responsible for the financial policy in the country," Magda Al-Tamimi, a member of the committee, told Shafaq News.

She added that "when the central bank determines or changes the exchange rate, parliament cannot amend the price," stressing that "the recent decision to change and determine the foreign currency exchange rate against the Iraqi dinar is in the hands of the bank governor."

Al-Tamimi pointed out, "The House of Representatives cannot force the Central Bank to change its decision on currency exchange according to the law."  LINK

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Samson:  The high exchange of the dollar shocks the people of Mosul, and disputes break out between the shopkeepers because of "previous debts"

20th December, 2020

Mosul markets woke up on Sunday to a cycle of conflicts and problems between merchants and shop owners, due to the rise in the dollar’s ​​exchange rate to 1,450 dinars.

On Saturday (19 December 2020), the Central Bank of Iraq officially announced the adjustment of the foreign currency exchange rate (the US dollar) to 145 thousand dinars for every 100 dollars.

Heavy losses

Omar Ahmed, a food supplier, told Shafaq News; He lost nearly 40 million dinars, and today the loss has worsened because he is forced to pay off debts at the new price, pointing out that the shop owners do not accept to pay their debts at the new price and say that the payment is at the old price when it was 1225. And Ahmed saw; The problem is not only in their loss, but in the prices of materials that have started to rise from today, and this will be on the shoulders of the citizen and the daily wage workers, and whoever lived miraculously and in ability, he needs a miracle in order to live and satisfy his family after today, indicating that Nineveh has an unemployment rate of 40 % According to the latest official statistics.

The government is forcing us to commit suicide

As for Ali, who is one of the daily paid workers in the market, he sits today on the side of the road, describing the market as a curfew, and he did not work for a single dinar today. He told Shafaq News, "I work every day from 5 to 8 thousand dinars, so how will I live in the coming days?" He asked, "What does the government want from us? Does it want us to kill ourselves, commit suicide, or steal so that our families can live and survive."

Although I had to spontaneously mention the theft and had no intentions to do so, the high cost of living and the high prices will complicate the matter and may raise the rates of criminal crimes in the coming period, coinciding with the difficulty of living and the conditions that Nineveh experienced in general and Mosul in particular.

The biggest crisis

As for Abdullah, who is the owner of a shop, he stated that he will be forced to raise prices in the coming days after the old goods and materials run out, and he will be like a mediator and have nothing to do with the rise, but the victim at the beginning and the end is the only citizen, so he pays the price of the wrong government policies and the failure of the political class that drags the country to an unknown and abyss end It may not come out of it. Abdullah believed that the real crisis is not only rising. The real problem and the major crisis is the delay in salaries, meaning that cash will not enter the market regularly and at that hour people will be in a position that they do not envy.

The most difficult year

As for the relief activist Muhammad Karim; He told Shafaq News Agency; "Next year will be the most difficult for the people of Mosul, especially in light of the presence of a large number of widows and orphans in this city, which witnessed the most violent war in modern history, indicating that" the poor need a miracle and a miracle to live.

On Sunday, an official at the Central Bank of Iraq stated that the new pricing for the sale of the dollar was launched in the public auction for the sale of the currency. The source told Shafaq News, "The bank has started applying the new price to sell the dollar," adding that "it was sold in today's auction for 1,450 dinars to one dollar."

According to a document received by Shafaq News; The governor of the Central Bank issued a directive to government and private banks informing them of the new dollar exchange rate.  LINK

Samson:  Central Bank: Foreign reserves are still good

20th December 2020

Central Bank Governor Mustafa Ghaleb Makheif revealed today, Sunday, that the Ministry of Finance officially requested an increase in the exchange rate to 1450 dinars against the dollar, stressing that the Iraqi reserves of hard currency are still good

"The Ministry of Finance officially requested an increase in the exchange rate to 1450 dinars against the dollar, which led to market turmoil these days," fearful told Al-Iraqiya TV, noting that "the Central Bank requested the presence of the Minister of Finance to explain the reasons for raising the value of the dollar exchange against the dinar

He added, "The World Bank had asked Iraq in 2014 to raise the dollar exchange rate to 1500 dinars," affirming that "Iraq's position on hard currency reserves is still good

The governor of the central bank said, "The high exchange rate of the dollar has affected the Iraqi market and the poor classes will be affected. The Ministry of Finance is responsible for supporting these classes, as it will double the amounts of social welfare

He called on the Ministry of Finance to "enhance customs revenues and accelerate the automation of customs and border crossings to maximize state revenues   LINK

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Samson:  On front page of CBI.  If you had the link open from yesterday you will need to close that and open up a new page.  I had to do that this end to see the new rate.  Their format has changed also - https://cbi.iq/   

SOON TO CHANGE !

US dollar USD 1460.000

Euro EUR 1789.814

Pound sterling GBP 1975.818

Canadian dollar CAD 1142.857

Swiss franc S.FR 1653.454

Swedish krona SEK 176.723

Norwegian krone NOK 170.195

Danish krone DKK 240.591

Japanese yen JPY 14.140

Chinese Yuan CNY 223.173

Australian dollar AUD 1108.724

Special drawing rights SDR 2108.196

Gold for 24-ounce Gold 2725637.500

MilitiaMan and KTFA Members Saturday Night "Bold Moves and Bold Actions" 12-19-2020

KTFA:

Samson:  Economist: The proposed diversion of the dollar price increase in the budget is intended for these two reasons

12:20 - 19/12/2020

The economic expert, Abdul Rahman Al-Mashhadani, confirmed, on Saturday, that the leakage of the draft budget, including the proposal to raise the exchange rate of the dollar is intended and has two goals, likely to increase the exchange rate for the next year to reach 160 thousand dinars in the local market if the parliament approved the government's proposal.

Al-Mashhadani said in a statement to / the information /, that “the leakage of the budget bill that includes the government’s proposal to raise the exchange rate of the dollar is intended and has two goals. The first is to feel the pulse of the street and the second is to benefit speculators and influential people from the price difference.”

He added that "raising the dollar exchange rate will burden citizens and people with limited incomes, and will harm their economic condition, through the high prices of foodstuffs and other necessary commodities."

Al-Mashhadani suggested, "The rise in the exchange rate for the next year to reach 160 thousand dinars in the local market if Parliament approves the government's proposal."  LINK

MilitiaMan:  "The first is to feel the pulse of the street and the second is to benefit speculators and influential people from the price difference.”

MilitiaMan:  That right there tells me they have an opinion and a plan to change the situation, the street won't stand for being taken advantage of for very long! Not at all... Hence the heavy citizen presence today and the surrounding the CBI with troops if I see that correctly. Lets not forget that K has been on fire today on Twitter and talking about Reforms. Bold moves and bold actions need to be done now without hesitation.. I couldn't agree more.. imo ~ MM 

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Samson:  An Intensive Deployment Of "Law Enforcement" Forces In Front Of The Central Bank

An intensive deployment of 'law-keeping' forces in front of the Central Bank, Al-Firdous Square, and in front of the Ministry of Electricity and the Iraqi Engineers Syndicate building, and the reasons are not known yet.   LINK

DeepWoodz:  Imo...Now I don’t know about yuuzz guyzz...but this is INTEREEEEESTING!!!
What a SHOW!!!  

Pattycakes77:  Tomorrow looks exciting

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JaimieO:  I have a question.  Knowing that "it cannot fail with the citizens," doesn't it seem rather dangerous for them to fill the streets with all this dis-information about lowering the value of the IQD, etc???  This stuff is hard enough for the well read, well educated folks to understand.  How to they expect their poor average Joe Citizen to sort this all out with them filling their heads now with bad info???  Just curious... IMO

MilitiaMan:  I don't think K (Kazemi) has the opinion of devaluing the currency. That would be to laugh at the people.. He says he has adopted the White Papers.. The White Papers were not about devaluing the currency. They are about items to enhance the economy by going to a market economy. Where they can create opportunities for the people.. In doing so, they'll create the environment for to build infrastructure and make a a better place to create exports that may be competitive in the world. K's strong language at a time we see now is very good.. imo~ They are to not hesitate and they should not fear their place close to those that are not for the reforms within the Council of Ministers.. The meeting tomorrow, should be very telling.. Very.. imo Those reform papers are I'll bet full of the data we look for from 2019 FMLA and the 2020 Budgets... imo ~ MM

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Samson:  Central Bank: Change the value of the Iraqi dinar will be one-time only and will not be repeated

19th December 2020

Economy News publishes the text of the Central Bank of Iraq’s statement on the change of the dollar’s exchange rate, and it says

During the last months of this year, intense deliberations took place with the Prime Minister, the Minister of Finance and the Legislative Authority, regarding the general economic situation and the financial crisis that the public finances are going through due to low oil prices and production, and the economic and health challenges

The Board of Directors of the Central Bank held a number of meetings, some of which hosted the Minister of Finance for the same purpose

The Central Bank of Iraq would like to show the following

1- The structural distortions in the Iraqi economy impoverished public finances and restricted the ability of reform sought by the government and the Ministry of Finance. It is not a coincidence that the financial situation is this bad, nor is it the result of the current or the previous year, but unfortunately it took root more than a decade and a half ago due to the policy leadership of the economy and the preference for political thinking and the priorities of politicians over economic thought and development priorities and the rules of the relationship between economic policy on the one hand and fiscal and monetary policies.

On the other hand ... the fiscal policy lagged behind, and the monetary policy was busy repairing the outputs of the confused fiscal policy

2- The subordination of the economic and financial policy to the aspirations and concerns of politicians resulted in the last acceptable models of financial management in Iraq, and the role of that administration was limited to the distribution of oil resources to life-sustaining requirements such as salaries and operational requirements, and the Ministry of Finance did not address its roles and leadership in economic affairs. In addition to the fact that it lacked many economic and financial information that could facilitate it and the decision-maker in the country to direct short and medium-term goals. This calls for an active approach to build economic and financial databases that facilitate decision-making and serve forecasts

3- Because of all these conditions, the Central Bank had no choice but to intervene on more than one occasion to support public finances and save critical public spending requirements .. However, this does not mean that these interventions remain open without restrictions or endings

4- On the other hand ... the Central Bank understands the difficulties facing the reform intentions that the government is heading to undertake, but this does not prevent any steps that the monetary authority can take with effective steps to implement reforms that inevitably affect the institutions of the financial authority, especially the effective collection institutions. Customs, taxes, and other public collection institutions, and that spending be leaned and rationalized, all of which depends on the political will of the supreme state institutions that support the direction of the financial authority to achieve this

The government needs to support the vulnerable groups that will inevitably be directly affected, especially by any measure to change the exchange rate

5- The legislative authority will have an important role in supporting the direction of the Central Bank to adjust the foreign currency exchange rate, as failure to take such a decision may make us forced to take difficult decisions that may put Iraq in a situation similar to what happened to neighboring countries

It must also be emphasized here that this change (reduction) in the value of the Iraqi dinar will be one-time only and will not be repeated, and the Central Bank will defend this price and its stability with the support of its foreign reserves, which are still at solid levels that enable it to do so

6- The financial crisis that Iraq was exposed to due to the Corona pandemic and the resulting deterioration in oil prices and the decline in oil revenues, this led to a large deficit in the general budget and forcing the Ministry of Finance to borrow from banks and re-deduct them with the Central Bank in large sums, in order to pay salaries And meeting other spending needs related to services provided to citizens, and the continuation of the current exchange rate, which is not in any way commensurate with the rates of exchange rates in other countries, has become a major obstacle to conducting real development and enhancing competitiveness for local production, which prompted the Central Bank to think seriously about responding to financing requirements.

Budget at the exchange rate that allows providing adequate resources to cover these needs and ensure the smooth payment of salaries and the critical requirements of government spending, and in order for the bank to avoid depleting its foreign reserves, which represent the main financial leverage for monetary stability in Iraq, And his keenness to support the public finances, as he is the advisor to the government and responsible for keeping its accounts

Based on the above, the Central Bank of Iraq decided to amend the foreign currency exchange rate as follows

1450 dinars per dollar is the purchase price of foreign currency from the Ministry of Finance

1460 dinars per dollar the selling price of foreign currency to banks

1470 dinars per dollar is the selling price of foreign currency to the public

We ask the Almighty to take the hand of our country and our people because of the goodness, payment, and honor that it contains

The Central Bank of Iraq - December 19, 2020   LINK

MilitiaMan:  “It must also be emphasized here that this change (reduction) in the value of the Iraqi dinar will be one-time only and will not be repeated, and the Central Bank will defend this price and its stability with the support of its foreign reserves, which are still at solid levels that enable it .to do so”

MilitiaMan:  We all know that they are not going to add taxes of 10% on many items: fuels, hair cuts, dates, etc.. lol The plan is to go to a market economy not back to the stone ages.

That would create a revolution that would bring the country to her knees in no time. This is clearly a message to all imo that needs to be taken carefully and thoughtfully.

 Do we really think that the CBI had a hand in this devaluation? No. They have told us directly that the GOI is the owner of the currency.

The GOI are the ones that created an environment to get as much currency off the street as possible, imo. The CBI would know that. They were a part of the meetings with the GOI at Salih's house. That was back around the 8th of this month.

Notice they kick the can with the salaries and the budgets? Then we today see that the Kurds have signed on to the 2021 budget and are yet still discussing the 2020.. lol That is what they said.. imo. Anyway, they too would not be happy to sign off on a devaluation. Not a chance.

The reduction of the value of the Dinar is at the first glance looks to be a devaluation, however, if we reduce the three zeros then they get a number that looks like this for instance.. 1470 = 1.47. 

To defend a one time exchange rate down to 1470 is not going to be in the citizens benefit.. But, by reducing the three zeros one time and to defend (market intervention) it is in their favor and ours.

Not to mention every man women and child or country that has it. There is no way that the G7, et al would have supported an exchange rate of a one time devaluation to go into a market economy.

Saudi Arabia didn't just open borders to be a part of that. They could have done that long ago, yet, didn't until now.. That is a fact imo..

The CBI didn't print more large denominations for crying out loud to defend a devaluation. They printed new small category notes. That is what they need to defend!!

They even say they have machines to count them now. The citizens know that. As does the Minster of Finance the Minister of Trade, Planning, etc.. All are fully aware of the plan and they have that imo in writing.. 

So, if we look at the facts of what we can see in the Final Article Thread we can see the picture far more clearly. The meeting tonight into tomorrow about the 2021 budget should have everyone's attention!!!

The expectation on the street is not about devalue but, about being on the street surrounding the CBI in expectation of a revaluation and they want it.

They want the Purchase Power they have been promised and deserve! imo Lets see what the days bring, but, imo, this is not what is looks like on the surface.. We shall see.. ~ MM

Zeeman:  is this the confusion that frank said before the rv?

Mryantodd:  I’ve been confused since I started watching this in 2009

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Don961:  Before launching the new dollar rate, find out how much you will lose from your salary and how much it will become actual?

2020-12-19  Yes Iraq: Baghdad

 The Ministry of Finance is preparing to officially announce the application of the new exchange rate of 1450 dinars to the dollar, which was considered an alternative to the deduction of salaries, as the reduction of the dinar will lead to a "hidden" deduction from the salary due to the devaluation.

The Minister of Finance, Ali Allawi, said in televised statements, that "we will issue a statement to raise the dollar exchange to 1450, while indicating that there are no appointments in the next year except for those announced at the end of this year."

Reducing the exchange rate to 1450 dinars per dollar, with salaries remaining unchanged, will reduce the real income for the whole community, that is, the purchasing power will decrease at the same rate as the reduction in the exchange rate, and this is known as the monetary illusion, that is, the employee still gets the same income, with purchasing power Less, in other words: keeping cash income unchanged and reducing real income (purchasing power).

The reduction will be 23%, meaning that the salary will lose 23% of its value, so the actual salary will be only 77% of the real figure.

Meaning, when you want to know the value of the salary when applying the reduction, then it is multiplied by the number 0.77, so the salary of 600 thousand dinars, its real value is 462 thousand dinars, and the salary of one million dinars, its real value is 770 thousand dinars, and so on.  LINK

MilitiaMan:  Again they have not come all this way to devalue, imo.. It makes no sense to anyone. Especially the international markets.. It is laughable.. imo They are telling us why they wont devalue, imo.. It harms the citizens The monetary illusion is that they are going to 1450 when they reduce the three zeros, the illusion goes away and purchase power is still be powerful imo.Why would the FM be bragging about a devaluation? Makes one shake their head.. Big time. So when reducing the zeros, gets the real income and purchase power!! imo..~ MM

KTFA Members "News and Views" Saturday 12-19-2020

KTFA:

Samson:  An Intensive Deployment Of "Law Enforcement" Forces In Front Of The Central Bank

An intensive deployment of 'law-keeping' forces in front of the Central Bank, Al-Firdous Square, and in front of the Ministry of Electricity and the Iraqi Engineers Syndicate building, and the reasons are not known yet.   LINK

Moparman:  Could this be for the big day tomorrow? Could the budget delay also be until after the announcement? IMO Yes. The GOI knows that the auctions must be stopped due to corruption. The GOI and the CBI also know that to add more value to the dollar will cause more inflation and will also push away investors. If they add value to the dollar, they will still be stuck with the big question, how are they going to pay their people every month? IMO, all the disinformation is following Kuwait's mold.

DeepWoodz:  Imo...Im sure this is way off base but I’m trying to be a good student so whatever.

Some of the articles seem to put out info that look bad at first glance, and it would seem Allawi is in on it. Two months ago or so the GOI, namely the MOF, pulled a fast one and restricted the amount of dollars in the market which has been driving the rate up.  They said they did it to bridge the deficit. I believe from the 2020.

So with the market rates going the wrong way and someone leaking some opinions in the articles, confusion abounds. I’m still not sure about the leaked budget. 

On that note, bring in the Governor making it clear to everyone that the CBI controls the real effective exchange rate of their currency and the rate hasn’t changed.....YET, but fear not because after two separate meetings. One with the PFC and the other with the Parliamentary Economic and Investment Affairs Committee. He also took a field trip into the markets and talked with exchangers and shop owners......

the CBI is ready to “launch a package of measures that will achieve a balance in the exchange rate in 2021.”

That will also double...”the hard currency supply in the market.”

Another member of the PFC says this concerning the higher rate in the markets....

“financial reform must be adopted exactly the opposite by reducing expenditures and developing plans and mechanisms for austerity”

Note the term..OPPOSITE.

Which brings us to Saturday that was supposed to be allotted for a meeting on the 2021. Saturday is looking interesting for sure.

Finally...we are one day closer to a special day. I wonder if we’ll have  a “white”(paper) Christmas!! Wink
PS...here’s a thought. Maybe just maybe....The plan has been to sow confusion. A concerted effort between GOI and CBI to lessen the dependence on the dollar in the markets, while at the same time giving the appearance that they are going to lower the value of the dinar to reduce the amount of people who would gobble up dinars knowing what was coming. Too little too late I think.   

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Samson:  Abu Mazen Submits His Resignation From Parliament

19th December 2020

Al- Mustaqilla obtained a document showing that Representative Ahmed al-Jubouri, known as “Abu Mazen”, had submitted his resignation from the House of Representatives.

It is noteworthy that an Iraqi court prevented Abu Mazen from running for the upcoming parliamentary elections due to corruption charges against him.

Al-Jubouri is leading a Sunni parliamentary movement to overthrow Parliament Speaker Muhammad al-Halbousi, in partnership with Osama al-Nujaifi, but the coalition disintegrated for unknown reasons.  LINK

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Samson:  The currency float in Erbil shocks traders: We do not know how to act

19th December 2020

Although the Erbil Stock Exchange suspended its dealings on Friday, Saturday, as it was an official holiday, dozens of speculators gathered in front of its entrance after the noticeable rise in the exchange rate of the dollar against the Iraqi dinar.

Hajj Muhammad, (owner of a currency exchange office), told Shafaq News that he came to the Erbil Stock Exchange to explore the situation, indicating that "there are those who want to benefit from the market and speculation, otherwise there is nothing official to raise the price of the dollar against the Iraqi dinar." He added, "We contacted the currency-buying offices that deal with the Central Bank in Baghdad, and they do not know about raising the price because the day before that, the bank asked them to buy the dollar prices, but until now we are in contact with them and the prices are the same as the old prices."

Sources in the Parliamentary Finance Committee said last Thursday that the Central Bank will raise the price of the dollar to 145,000 Iraqi dinars for every hundred dollars.

In turn, Yassin Hamad, the owner of a banking office in the Arbil Stock Exchange, told Shafaq News, "We do not know the reasons, but there are those who have large sums of dollars and want to sell them at a high price in the hope that they will buy it in the coming days at a lower price and in return there are those who own the Iraqi dinar and want to he buys the dollar for fear that its price will rise further."

The impact of this rise in the price of the dollar on the prices of foodstuffs as well, amid citizens' fears of a rise in prices. "The prices of all foodstuffs have increased significantly," said Zamdar Hussain, who was about to buy some foodstuffs in Sheikh Barbil's market. Unfortunately, only the citizen pays the price.

Alan Shaker Amin, the owner of a food store in Sheikh Irbil's market, defended the high prices, saying, “We do not know how to act, the price of the dollar changes every day and we do not have large sums. Selling in Iraqi dinars and then converting it into dollars to buy food with it from Turkey." "We cannot maintain the price if the market is not stable in terms of currency exchange," he added.

To that, economic analyst Kovand Sherwani says, "Floating the dollar is a measure that the federal government will adopt to provide cash liquidity in dinars that will reduce the financial deficit, which is estimated at 58 trillion dinars in the year 2021." But he cautioned that "raising the exchange rate from 1190 to 1450 dinars per dollar means that the market price will exceed 1500 dinars to the dollar, and this means a 25% drop in the value of the dinar. This leads to a decrease in the purchasing power of employees and people with limited income by more than 25% because more than 75% of goods and services in Iraq are imported, and their prices are set in dollars."

Sherwani offers a solution to mitigate the harm to citizens, low-income citizens and public sector employees, saying, "It is possible to expand support for basic and food commodities, especially among them the ration card items, which have shrunk significantly in previous years." He added, "As well as raising the interest rate on bank savings in dinars and supporting local commodities and products that are sold in dinars, as well as disbursing a financial incentive package for small enterprises, earners and private sector institutions."   LINK

Samson:  Parliamentary Finance reveals the government's intention to officially declare bankruptcy in early 2021

14:57 - 12/19/2020

The Parliamentary Finance Committee revealed, on Saturday, the government's intention to declare bankruptcy early next year, indicating that it had resorted to the exchange rate of the dollar to avoid declaring bankruptcy.

"The current government has failed in all steps to save the country from the financial crisis as a result of the failed financial policy that it followed," a member of the Parliamentary Finance Committee, Abdul Hadi Al-Saadawi, said.

He added, "The government was intending to officially declare bankruptcy at the beginning of 2021," noting that "the government took steps to take for the affected citizen to avoid bankruptcy."

Al-Saadawi said that "one of these steps is to raise the price of the dollar against the Iraqi dinar," noting that "it is my solution, and the Iraqi dinar will be harmed by it."   LINK

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Samson:  Central Bank: Change the value of the Iraqi dinar will be one-time only and will not be repeated

19th December 2020

Economy News publishes the text of the Central Bank of Iraq’s statement on the change of the dollar’s ​​exchange rate, and it says

During the last months of this year, intense deliberations took place with the Prime Minister, the Minister of Finance and the Legislative Authority, regarding the general economic situation and the financial crisis that the public finances are going through due to low oil prices and production, and the economic and health challenges

The Board of Directors of the Central Bank held a number of meetings, some of which hosted the Minister of Finance for the same purpose

The Central Bank of Iraq would like to show the following

1- The structural distortions in the Iraqi economy impoverished public finances and restricted the ability of reform sought by the government and the Ministry of Finance. It is not a coincidence that the financial situation is this bad, nor is it the result of the current or the previous year, but unfortunately it took root more than a decade and a half ago due to the policy leadership of the economy and the preference for political thinking and the priorities of politicians over economic thought and development priorities and the rules of the relationship between economic policy on the one hand and fiscal and monetary policies.

On the other hand ... the fiscal policy lagged behind, and the monetary policy was busy repairing the outputs of the confused fiscal policy

2- The subordination of the economic and financial policy to the aspirations and concerns of politicians resulted in the last acceptable models of financial management in Iraq, and the role of that administration was limited to the distribution of oil resources to life-sustaining requirements such as salaries and operational requirements, and the Ministry of Finance did not address its roles and leadership in economic affairs. In addition to the fact that it lacked many economic and financial information that could facilitate it and the decision-maker in the country to direct short and medium-term goals. This calls for an active approach to build economic and financial databases that facilitate decision-making and serve forecasts

3- Because of all these conditions, the Central Bank had no choice but to intervene on more than one occasion to support public finances and save critical public spending requirements .. However, this does not mean that these interventions remain open without restrictions or endings

4- On the other hand ... the Central Bank understands the difficulties facing the reform intentions that the government is heading to undertake, but this does not prevent any steps that the monetary authority can take with effective steps to implement reforms that inevitably affect the institutions of the financial authority, especially the effective collection institutions. Customs, taxes, and other public collection institutions, and that spending be leaned and rationalized, all of which depends on the political will of the supreme state institutions that support the direction of the financial authority to achieve this

The government needs to support the vulnerable groups that will inevitably be directly affected, especially by any measure to change the exchange rate

5- The legislative authority will have an important role in supporting the direction of the Central Bank to adjust the foreign currency exchange rate, as failure to take such a decision may make us forced to take difficult decisions that may put Iraq in a situation similar to what happened to neighboring countries

It must also be emphasized here that this change (reduction) in the value of the Iraqi dinar will be one-time only and will not be repeated, and the Central Bank will defend this price and its stability with the support of its foreign reserves, which are still at solid levels that enable it to do so

6- The financial crisis that Iraq was exposed to due to the Corona pandemic and the resulting deterioration in oil prices and the decline in oil revenues, this led to a large deficit in the general budget and forcing the Ministry of Finance to borrow from banks and re-deduct them with the Central Bank in large sums, in order to pay salaries And meeting other spending needs related to services provided to citizens, and the continuation of the current exchange rate, which is not in any way commensurate with the rates of exchange rates in other countries, has become a major obstacle to conducting real development and enhancing competitiveness for local production, which prompted the Central Bank to think seriously about responding to financing requirements.

Budget at the exchange rate that allows providing adequate resources to cover these needs and ensure the smooth payment of salaries and the critical requirements of government spending, and in order for the bank to avoid depleting its foreign reserves, which represent the main financial leverage for monetary stability in Iraq, And his keenness to support the public finances, as he is the advisor to the government and responsible for keeping its accounts

Based on the above, the Central Bank of Iraq decided to amend the foreign currency exchange rate as follows

1450 dinars per dollar is the purchase price of foreign currency from the Ministry of Finance

1460 dinars per dollar the selling price of foreign currency to banks

1470 dinars per dollar is the selling price of foreign currency to the public

We ask the Almighty to take the hand of our country and our people because of the goodness, payment, and honor that it contains

The Central Bank of Iraq - December 19, 2020   LINK

OlLar:  I love this , exactly what we expect, of coarse there is no mention of who said this, do you know what this means? Watch the CBI early Sunday morning, this is their HEADFAKE! We are going to have a very Green Christmas! Stay close to Jesus so this blessing does not become a curse . IMO

Don961:  The Central Bank is discussing with two parliamentary committees to balance the exchange rate
Saturday 19 December 2020 Baghdad: Mustafa Al-Hashemi

 The rise in the price of the dollar against the dinar, and its causes, is still the talk of specialists in financial and economic affairs, at a time when the exchange rate exceeded 133 thousand and 500 dinars per hundred dollars in all governorates, despite the discussion of the financial, economics and investment affairs committees with the Central Bank, in two separate meetings, the reasons for that . The Parliamentary Economic and Investment Affairs Committee held a joint meeting with the Governor of the Central Bank, Mustafa Ghaleb Makhaif, and the bank's management official, to discuss the crisis of the high exchange rate of the dollar in the local market and the daily currency auction.

The Parliamentary Finance Committee also held a new joint meeting with the governor of the Central Bank to discuss the implications of the high exchange rate of hard currency in the local market, after a previous meeting of the governor with members of the Parliamentary Economic and Investment Affairs Committee.

Khayef revealed the readiness to launch a package of measures that will achieve a balance in the exchange rate in 2021, such as launching a 3 trillion initiative to support low-income people, doubling the hard currency supply in the market, and increasing interest rates on the local currency deposited in banks.

The committee discussed ways to confront the negative repercussions of increasing the exchange rate on citizens, especially the poor classes, as well as the measures that the Central Bank will follow towards banking companies to deter the weak from exploiting this situation.

Earlier, the governor of the Central Bank conducted a field visit that included a number of companies mediating the sale and purchase of foreign currencies on the Karkh and Rusafa sides in Baghdad, accompanied by a committee specialized in auditing companies from the Banking Control Department at the Central Bank.

According to a statement by the central bank, "the governor was briefed on the functioning of these companies and their dealings with the beneficiaries of the citizens. He also listened to the notes and proposals of the owners of the companies and promised to study them by the bank and activate their outputs, which will positively affect the work of the Iraqi financial and economic sector."

The statement indicated that this visit comes from his keenness to see first-hand the actual reality of the work of these companies in order to develop the services provided by them.

The specialist in economic affairs, Adnan Al-Fattal, believes that there is a case of speculation on the dollar by a group of people who have hoarded Iraqi money, who buy large quantities of dollars in exchange for the central bank preserving the amount of pumping the dollar into the market without increasing it.

Al-Fattal added in an interview with Al-Sabah that “It is known that the Central Bank has set an official price for selling the dollar at 1190 dinars per dollar, while the owners of banking shops and speculators make huge profits from the difference in the price sold in the market of 133 thousand and 500 dinars per hundred dollars. , Which has been on the rise for days.

In turn, economic researcher Lubna Al-Shammari called on the Central Bank to coordinate with Economic Security to monitor the offender in the event of selling the dollar at the current price that confused the markets and commercial dealings in them.

Al-Shammari added to "Al-Sabah" that "the banks participating in the window of selling the currency bear part of the responsibility because the Central Bank sells dollars at a fixed exchange rate, and that buyers of hard currency from it and speculators bear the bulk of the cause of this crazy rise."

She emphasized that "this increase is temporary and the exchange rate will return to its normal rates or close to it after the end of the Christmas and New Year period, because this rise is not new to Iraq as it is affected by rumors, false news and the current conditions in the country."  LINK

KTFA Members "News and Views" Friday 12-18-2020

KTFA:

A source : The Central Bank sets a new price for the dollar, starting from Sunday

12/18/2020 11:00:49

 A private source revealed that the Central Bank of Iraq will soon set a new price for the dollar exchange in Iraq.

The source told {Al-Furat News} that "the central bank, starting next Sunday, will adopt a new price for the dollar at a value of 1450 dinars for one dollar {ie 145 thousand dinars for one hundred dollars}". It is noteworthy that the Central Bank of Iraq is currently selling dollars for 1190 dinars.

The Parliamentary Finance Committee hosted, yesterday, the Governor of the Central Bank, Mustafa Ghaleb, to discuss the economic crisis and the implications of the high exchange rate of hard currency on the Iraqi market situation.

The central bank governor explained to the committee, according to a statement that "the bank is preparing to launch a package of measures that will achieve a comfortable balance in the exchange rate for the year 2021, including launching an initiative in the amount of 3 trillion to support low-income people, doubling the provision of hard currency in the market, and increasing interest rates on the Iraqi currency deposited in Banks."

According to the leaked draft of the federal budget law for 2021, it included fixing the exchange rate of the dollar against the Iraqi dinar on the basis of {1450} and a deficit that exceeded 58 trillion Iraqi dinars. The estimated revenues from exporting crude oil were also calculated on the basis of the price of 42 dollars per barrel, and the rate of exporting 3 million And 250 thousand barrels per day, including 250 thousand barrels exported from the Kurdistan region.

The former Undersecretary of the Ministry of Finance, Fadel Nabi, attributed the decline in the value of the Iraqi currency against the dollar to banks and currency dealers who are working to raise the price of the dollar in order to achieve profits. 

The leakage of the draft budget to the media and social networking sites caused widespread controversy and turmoil in the foreign currency market in Baghdad, as the exchange rate of the dollar rose in the local market in a frenzy and exceeded 1340 dinars before it fell to 132 thousand dinars after government and parliamentary assurances that the draft is not final and subject to modification.   LINK

Zeeman:  On sunday they will change the rate from 1190 to 1450. if so they are going in the wrong direction that we want.if so  what happened to the white papers and all the things we have been told since the summer?

DeepWoodz:  Imo...Confusion at the end is PLANNED and expected, foretold, pre-destined, and yes even mentioned. Ps....we are pretty educated on this investment...have y’all considered these articles just may be Iraq’s idea of preventing people from taking advantage of the news their rate is changing? I mean....to us it sounds like way too late but then again this is their FIRST EVER RI!!! Lol

Edna:  I must say, Ya gotta love ALL these articles talking about the exchange rate and the budget...I feel the Dam is breaking.

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Samson:  Parliamentary Finance: The Central Bank will take measures regarding the exchange rate of the dinar

18th December 2020

The Parliamentary Finance Committee confirmed, today, Friday, that the governor of the Central Bank will take measures regarding the exchange rate of the dinar.

A member of the committee, MP Ahmed Al-Saffar, said, "The leaked budget project is not official, and no one knows who is behind its diversion, what is the purpose of its diversion, and what is meant by the diversion," noting that "the leakage of the budget affected the market situation and the citizen's psyche." 

Al-Saffar added that "the financial committee met with the governor of the central bank, and that there are some measures that the governor will take," noting that "the committee is continuing to follow up the matter, and is awaiting the arrival of the draft budget until it has its own opinion in this regard."  LINK

Samson:  Talabani: We will not return from Baghdad without an agreement

12/18/2020 13:21:19

 Vice President of the Kurdistan Regional Government, Qubad Talabani, {head of the negotiating Kurdish delegation}, expressed his optimism to reach an agreement with the federal government on returning financial dues to the region.

The Patriotic Union of Kurdistan website quoted Talabani as saying, "The problems are many and not only the issue of the fiscal deficit and salaries law. Some of them go back to the constitutional reading in Parliament, as well as the preparations for early elections."

He added, "There is an unhealthy political atmosphere in Baghdad, as well as political pressures on all sides, so the process of dialogue with the federal government to solve all problems is not easy, but we are optimistic about reaching an agreement and we will not return from Baghdad without an agreement."

Talabani indicated, "They are ready to implement the fiscal deficit law in Iraq and hand over oil and non-oil revenues, and in return, fix the share of the Kurdistan region in the borrowing law."   LINK

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Samson:  Deputy: Theft of $ 150 million in the budget next year

12/18/2020 11:32:46

 Representative Alia Nassif revealed a paragraph in the fiscal budget for 2021 that contains millions of dollars of corruption, indicating that there are common known names in this theft.

Nassif said in a statement today, the Euphrates News Agency received a copy of it, that "in light of the difficult economic circumstance and the semi-empty treasury and the scarcity of employees' salaries, the corrupt are mastering the theft of public money and their greed does not stop even in times of crisis and lack of funds, and today there is a paragraph in the budget of the year. The next includes the theft of $ 150 million through a loan to a company that owns two names, and these thefts are an extension of the thefts of {Luay Al-Khatib} {former Minister of Electricity}. We will explain to the Iraqi public opinion the details of this process, the place where the deal was concluded and who are the partners in it."

She indicated that "the current situation is very worrying, considering that one article of the budget will be theft of $150 million through a loan, led by Luay Al-Khatib's gang, director general, minister and official in the former regime in Dubai," calling on the Prime Minister, the Integrity Commission and the honorable deputies to "stand up against this theft and an end to this misuse of public money."

It is noteworthy that a copy of the draft federal budget law for 2021 was leaked yesterday in the media and included fixing the exchange rate of the dollar against the Iraqi dinar on the basis of {1450} and a deficit that exceeded the 58 trillion Iraqi dinars, and the estimated revenues from the export of crude oil were calculated on the basis of the price of 42 dollars Per barrel, and at the rate of exporting 3 million and 250 thousand barrels per day, including 250 thousand barrels exported from the Kurdistan region.

LINK

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Samson:  Integrity arrest senior officials in Nineveh

18th December 2020

On Friday, a force from the Integrity Commission arrested the director of the municipality of Mosul, accusing him of involvement with a large network that manipulates the state’s lands, as well as an official in the Nineveh Health Department on charges of corruption.

A security source told Shafaq News that a force from the Integrity Commission in Nineveh, "arrested late this week the deputy director of the municipality of Mosul, Engineer Walid Muwafaq, who was in charge of the property regulation division in the municipality."

The source indicated that Muwaffaq was arrested "against the background of the dismantling of an entire network of selling and manipulating state land two weeks ago," adding that "the reason for Muwaffaq's arrest is because he was involved in these cases and was aware of the numbers of distinctive plots of land whose prices reach fictional sums and may be involved in the diversion and sale of them." But the investigation with him is still ongoing."

He added, "Less than 24 hours later, Al-Nazaha arrested the director of the medical committees in the Nineveh Health Department, Dr. Muhammad Odeh, also on suspicions of corruption, but the real reason behind his arrest has not yet been clarified."   LINK