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."

.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.

.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.

.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

.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.

.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).

.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.”

.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.