KTFA Monday Night CC with Frank26 and Team "Categories" 1-18-2021

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KTFA CONFERENCE CALL MONDAY NIGHT 1-18-2021

 Frank26:  1-18-21......CATEGORIES

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KTFA Members "News and Views" Monday afternoon 1-1-8-2021

KTFA:

4Cash:  IMO no one is going to put investments in Iraq until the rate change!!! 

Don961:  Minister of Industry: International companies want to enter the Iraqi market after adjusting the dollar exchange rate

Sunday 17 January 2021 - 18:38  Minister of Industry and Minerals, Manhal Aziz

Baghdad (People) - The Minister of Industry and Minerals, Manhal Aziz, announced, on Sunday, that 5 new factories will open during the coming period, while noting that changing the exchange rate will allow competition to the local product.  

 Manhal Aziz said in a statement to the official channel followed by "People", (January 17, 2021): "The ministry started with a real plan to revive 17 factories that were previously idle, and succeeded in opening 12 of them, while 5 others will be opened and restored to work during the next six months." .  

 He added, "After 2003, the ministry was marginalized, in addition to the great destruction of the infrastructure and many production lines," noting that it "owns 225 factories today, out of which around 83 are completely idle."  

And that "the ministry's plan is to revive these factories, employ manpower and increase national production," noting that "changing the exchange rate of the dollar provided an opportunity for the Iraqi producer to be a real competitor," noting that "the ministry with its new plan greatly supports the private sector for its role in Reviving the national industry. "  

And, and that "there are foreign and regional companies express their desire to enter and cooperate in the Iraqi market because of this increase in market prices, which leads to a kind of economic feasibility in establishing these factories inside Iraq."  

He pointed out that "the government is seeking to put in place a real law for border crossings and set fees and taxes on products to find real ways to market inside Iraq within the controls and laws supporting the protection of the national product."  

 He explained, "There is an agreement and cooperation with the Ministry of Planning and the Center for Privatization and Quality Control to develop a directory of Iraqi products and protect them and put large fees on them. These materials must cover the market need and be of a high level of efficiency and quality and have a competitive price in the market."   link

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DeepWoodz:  Imo...Just some thoughts...

So the story they have put out to date is that they reduced the value of the dinar in order to facilitate the local product. By making imports more expensive for everyone in the country, this somehow helps Iraq because a tomato locally produced can now compete.

Well I’m pretty sure that even if the local grower is getting rich, that doesn’t help the other 45 million people as they are still paying the same prices. Sounds like the rich getting rid of their competition at the expense of the rest of the country.

Seems like to me the better way would be to add value to the dinar, making their 90%+ imported economy a lot cheaper for everyone. Raw materials for the same industries (tomato farmer) would be cheaper so even the rich would prosper more. With the new tax laws in effect, not just on salaries, but on imports as well, that would be the equaliser for the local product.

Does this sound reasonable? Because this is the story, to the best of my comprehension, and it just doesn’t make sense to me. 

Humble1:  Hey Deep, you hit the nail on the head, it is better for the owners of the factories for the dinar to be priced much lower than other currencies because they make more profit that way, it is the very reason that China keeps their currency at a very low value because the "state" of china makes all the profits, they don't care about the people and how the low exchange rate effects the individual.  But in a free market economy, you want the individuals to do well so that they expand the economy for everyone, not just those at the top of the food chain, all imo.

Pete2001:  completely agree! imo who are they trying to export to anyway? other than their oil which is  in $ anyway...they need to get investment into their country and the only way to do is to make their currency stronger backed by their gold reserves, oil and other natural resources....guess I understand Viet Nam currency manipulation cause they are trying to compete w China for production of consumable goods like clothing etc. but Iraq is a different situation, imo

DeepWoodz:  Imo...And just to add what I believe is the truth to come....

article 97
”Al-Kazemi said, "We face challenges, and we do not care about the attempts to question the work of the government and put the stick in the wheel. The most important thing is for us to provide service to citizens,"

He indicated that the support and protection of the local industry occupied a large place in the government curriculum, and we are currently working on preparing the necessary infrastructure to create an appropriate environment to revive the Iraqi industry again, and we rely on this path on the energies of the youth in our country. In order to restore honor to the Iraqi industry, and to work together to protect it."
” and that the government has embarked on a set of reforms to support the industry through the reform white paper and in Budget for 2021, and we imposed taxes on imported products to support and protect the local, national product."

. We rely on the private sector to play a major role in supplying the Iraqi industry and restore its identity, and we will provide all support and support so that Iraq is among the countries that compete with its industry."

DeepWoodz:  He is not for the status quo of previous years, and let’s face it, toilet paper currency is the status quo.  

Samson:  The ouster of a gang that stole more than a billion dinars from an investment bank

01/18/2021 15:02:09

On Monday, Baghdad crime-fighting detachments overthrew a gang that stole more than a billion dinars from an investment bank.

The directorate stated in a statement that Al-Furat News received a copy of it, that "a gang consisting of men and women was arrested and stole an amount of one billion three hundred and fifty million dinars from inside an investment bank in a private college."

And she added, "Immediately, a working group was formed, and through gathering information and taking fundamental measures at the scene of the accident, the accused (MZ) was identified, and through him the rest of the gang members were inferred and arrested all of them."

He pointed out that "the stolen amount was found in full, and their investigative papers were referred to the judiciary to receive their fair penalty."  LINK

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Don961:  Economic offices are outlets for stealing public money

Friday, January 15, 2021 - 06:07  Salah Al-Zubaidi

Economic offices or economic committees is a phenomenon that came after the American occupation of Iraq in the year 2000, and Iraq was not familiar with it previously, which devoted the sectarian quota system to the administration of the Iraqi state.

Economic offices are a mechanism that sectarian parties have used in managing ministries that are affiliated with this party or that according to sectarian quotas. These offices monitor the minister and study all contracts and projects before referring them, and determine the percentage that the party must obtain, in order to guarantee and permanence the financing of parties' projects and party activities, which made them an obstacle to the state administration of its tasks in the implementation of economic and development projects according to the absorption of the capabilities of Iraq.

Finance, as these committees contributed to one of the largest money laundering operations in the world, when they used their political influence to transfer tens of billions of party dollars to abroad to be placed in private accounts or to buy real estate and various properties in Europe or neighboring countries.

 This is what the Parliamentary Integrity Committee indicated in the Iraqi Council of Representatives, that the amount of money smuggled out of Iraq is estimated at (238) billion dollars, which is a number that exceeds the Iraqi budget for more than two years, and the money that was smuggled, most of the projects and contracts contracted by the Iraqi ministries and governorates. Smuggled them through fake receipts.

 Any political party contributing to the government measures the minister's level of obedience to him by the extent of his coordination with the economic committee within the ministry, so some political blocs prefer to nominate the same names for the position of the minister who falls within their quota regardless of his experience, specialization and academic achievement, and the economic offices in ministries and institutions have arms that can Through it, access to some ministers to obstruct the referral of contracts of some ministries to a party without another through illegal competition or by putting pressure on ministers and their agents.

The Al-Kazemi government was not able to control this, because the parties are the ones that came to the current government and gave it confidence, so this is difficult That the Kazemi government deviate from the context of quotas and political pressures.

While a former member of parliament, Rahim al-Darraji, described the political offices of the parties in the ministries as (offices for looting and stealing the money of the Iraqi people), adding that political parties stole the money of Iraqis through the economic offices and stressed that (the economic offices caused the destruction of all Iraqi projects because they relied on fake projects that have no origin. On the ground).

In the same context, former Minister of Justice Wael Abdel-Latif emphasized that (economic offices are illegal, but they give each political bloc a percentage ranging between 5-10% for each contract) and added that (party offices were formed in 2005, which is the cause of the inflated wealth of politicians and large parties, and pointed out the existence of Key figures in each ministry help the minister to conclude deals on paper in exchange for commissions)

Due to the high voices calling for the closure of the economic offices of the parties and blocs, it was canceled in the public form, and the truth to this moment is still managing many projects and economic tenders, as political parties resorted to camouflage by using non-political names and addresses to obtain funding.

It should be noted that some parties do not have known economic offices, but they manage corruption operations in secret ways without attracting attention, especially after the matter of those offices was clarified, the parties transferred the names of the funding committees to another name that indicates other activities, but they practice the same blackmail against contractors and businessmen, for this reason Major struggles are taking place between the parties to obtain important ministries in them (commissions) of contractors and businessmen.

The evidence of the blackmail practiced by economic offices on contractors and businessmen, as a Kuwaiti businessman came to Basra years ago and had a project to build five thousand housing units for people with limited income, but the blackmail of an influential party demanded a high commission, which forced him to cancel the project and return to his country.

Observers in economic affairs unanimously agree that without eliminating these committees that nest in the ministries and official institutions, there is no hope for the rise of Iraq again, as the resources of the Iraqi state will remain vulnerable to plunder and plunder by the economic committees of the sectarian quota parties. LINK

MilitiaMan and KTFA Members "A Taste Of Reality" 1-16-2021

KTFA:

MilitiaMan:  I have been looking out over the articles of late and there is a theme that is being presented collectively that suggests that the recent devaluation is and was a very big mistake and one they are going to fix.

They affects are and have been huge. The on set of the impact of 23% over night, roiled markets and the citizens to the core. Foods and services rose 30-50% in short order. That is not good at a 1460 exchange rate. 

The move didn't do anything good like they thought it would. Payed some salaries, at the cost in inflation setting in the pain and suffering at the grocery stores, etc.. 

Well, it is my opinion they were allowed to do that, as the experts knew it would have cause and effect. It is as though they allowed them to experience the negative effects and get to the bottom to see that pain from increased pricing. A taste of reality so to speak..

Which would then show them that the right way is still on the table. That is imo to be the deletion of the three zeros. Which will bring purchase power in form of the oil profits for and to the citizens. Oil, taxes, tariffs, fees, customs, payments, agricultural, commercial and industrial projects will coincide with the next phase. The next phase is to re build the country. (See links Below.)

The reconstruction effort cannot be effective nor support Iraq in being competitive in the global market at 1190 let alone 1460 Dinar exchange rate. That will never happen.

What will though is the real exchange rate when applied will bring purchase power. We have been shown that the real exchange rate back in May of 2020 to be 682 Dinars to the Dollar.

That number less the three zeros is .68IQD = 1USD.

Just as the inverse of 1460 is to the Dollar when dropping the three zeros. 1/1460 = .68. real close. Again a similarity to the region and the SDR Basket with the IMF.

The IMF has recently said Iraq has been transparent with their budget and fiscal policies over the past 3 years and it will behoove them to stay that way as the transparency for investors is key for decision making purposes in regard to valuations.

All currencies globally need support for the value of the Real Effective Exchange Rate of their currency. Iraq is no different. As we see in the data below.

The real exchange rate represents the distribution of part of the oil revenue for the citizens. The devaluation was a failure an it was inappropriate as the taxes to the citizens at a program rate would destroy then in short order, whereby the real exchange is applied that all gets washed out much easier as does the deficit..

So, keep a keen eye in these links and you'll see the theme I speak of. It is very exciting times.

They have read and completed apparently the 2021 today.. They did 40 articles, then latter resumed the meetings then they raised the meeting. Hence, they suggest they completed it.

Also, keep in mind the 5 committees. They are new.. Well, with a new real exchange rate they would need a committee for each ministry to be able to facilitate the exchange rate accordingly to apply throughout their respective projects to allocate funds for.

Just like the loans from the Banks today.. To be competitive to build housing, etc, they will need to adjust the rate.. They say it over an over again.. imo.. Lets look for the CBI to talk now.. imo.. ~ MM

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"The third and intangible trend is the difference between the real exchange rate and the official exchange rate fixed by the central bank. Which in fact represents the distribution of part of the oil revenue to all Iraqis in the form of enhancing the purchasing power of the dinar against the dollar and thus increasing the real incomes of all members of the Iraqi people, especially the poor and vulnerable segments that have been affected by the change of the exchange rate due to the decline in the purchasing power of the dinar with the limited entry of this Categories.

The reduction in the value of the Iraqi dinar came mainly to finance the huge deficit in the 2021 budget and not to achieve economic reform and raise the competitiveness of the national product. Especially with the continuing decline in oil revenues and the government's inability to reduce expenditures or maximize non-oil revenues in the short term. However, the timing of the implementation of the exchange rate policy is not appropriate for the economic recession caused by the Corona virus. Especially with the inclusion in the 2021 budget of salaries, tax increases and investment expenditures, which exacerbate the impact of the double shock (financial and monetary), which outweighs the ability of the fragile Iraqi economy to adapt and continue."  LINK

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Economist: The rise in the dollar will have negative effects on the economy, and the citizen will pay the price  LINK

Committee: The Minister Of Finance Caused An Economic Disaster For The Private Sector LINK

Al-Rafidain announces financing and marketing of investment projects and granting them loans  LINK

To discuss the budget with the concerned authorities ... Parliamentary finance sub-committees are formed  LINK

 Parliamentary Finance: Meetings Are Continuing To Study The Provisions Of The 2021 Draft Budget  LINK

Parliamentary Finance confirms reading 40 articles from the budget and specifies a possible date for passing them   LINK

 Parliamentary Finance: To vote on the budget next week .. This is the fate of the salary deduction  LINK

Tomorrow .. The launch of the activities of the exhibition {Made in Iraq} LINK

Parliamentary Finance intends to reduce the difference in the approved oil price in the budget  LINK

Parliament Presidency instructs to study proposals and demands related to the budget LINK

The House of Representatives resumed this evening, Saturday, its 35th session chaired by the First Deputy Speaker, Hassan Al-Kaabi.LINK

The formation of 5 parliamentary committees to discuss the budget with the three presidencies

The Parliamentary Finance Committee announced, on Saturday, the formation of 5 committees among its members to hold separate meetings with the three presidencies, ministries, and government bodies to discuss the budget. The second reading is expected to resume tomorrow, 

 he House of Representatives raises its session for further notice

Political| 06:52 - 01/16/2021

The House of Representatives raises its session for further notice  LINK

Ross:  If they want to bring in a lot of 3 zero notes just come out at $1.00 US = .68 dinar.  They will get a lot of foreigners to cash in cause they just want to get off of this roller coaster. Then they can float it up later.

Don961:  Parliament concludes the debate on the 2021 budget and comes out with 162 requests and observations on it

2021-01-16   Yes Iraq: Baghdad

 On Saturday, the House of Representatives ended discussion of the budget bill for 2021.

According to a statement by the council, “the representatives demanded, through their interventions, that revenues be distributed fairly among the governorates, taking into account the disbursement of petrodollar dues and the benefits of border crossings, the allocation and disbursement of financial dues to mobilize the Ministry of Defense, doubling the sums allocated to the Reconstruction Fund for Liberated Areas, and imposing taxes on imported materials that have an equivalent of the local product in support of it. As well as supporting the Ministry of Education by increasing financial allocations and paying attention to scientific research centers, wondering about the reasons for the decrease in support for the ration card items.

The remarks of the members of the Council promised, “The government's direction through the draft budget law is in contradiction with what it proposed in the white paper aimed at reform, calling for the government to adopt a deliberate vision to reduce the level of unemployment among the youth segments and to demand support for the sporting reality in Iraq by increasing the financial allocation for it, in addition to Activating the Federal Service Council to take on its role in professionally creating and deleting job grades and proposing to install night guards on the Ministry of Interior or Oil’s 6,000 affiliates concerned with the protection of oil wells, and to ask the government, for reasons of its neglect, to set up a mechanism to pay off the debts accumulated on the Kurdistan Regional Government from selling oil.

Members' opinions focused on giving importance to investment projects and lagging behind, calling for the re-operation of the stalled laboratories in the governorates and providing support to the development ministries in the country in relation to the financial inflation presented to the security ministries and calling for the abolition of Decision No. 94 of 2010 related to launching the promotion of employees holding diplomas and graduates of institutes.

In its response to the interventions, the Finance Committee indicated that it had received 162 requests from the ladies and gentlemen of the deputies related to the draft general budget law 2021, pointing out that a schedule was set to respond to the observations received, noting that determining the price of a barrel of oil and currency exchange in the budget law are the government's prerogatives, indicating that The implementation of the budget law requires reducing the volume of total spending and activating the private sector, both industrial and agricultural, stressing that it takes into consideration the proposals put forward regarding the budget law.

For his part, Bashir Al-Haddad called for efforts by the parliamentary blocs and committees in cooperation with the Finance Committee to pass the general federal budget law in the service of citizens in general and in the interest of all governorates without exception, noting the need for the government to follow a policy of reducing expenditures and consolidating revenues to reduce the financial deficit in the budget in particular With the instability of the economic situation in Iraq, as well as coordination and cooperation to solve the outstanding problems between the federal government and the Kurdistan Regional Government.

In another context, the discussions of the ladies and gentlemen of the representatives in public affairs focused on demanding the payment of farmers ’dues, looking at the dues of contracts for good deeds, and investigating the reasons for the transfer of one billion dinars from the budget of Nineveh Governorate to Salah al-Din Governorate, in addition to investigating the security breaches that occurred in some areas of the governorate Diyala.   LINK

MilitiaMan:  There you go. Support for an earlier post. Activating the private sector. That my friends is imo going to a market economy, whereby, activating the industrial and agricultural sectors to create jobs. They real exchange rate will do the trick. The CBI is next up? Sure hope so! ~ MM

DeepWoodz:  Imo... I like .....

“noting that determining the price of a barrel of oil and currency exchange in the budget law are the government's prerogatives”

wonder why they listed these two items together? Hmmm....C’MON WITH THAT BUTTON CBI!!!!!!!

”For his part, Bashir Al-Haddad called for efforts by the parliamentary blocs and committees in cooperation with the Finance Committee to pass the general federal budget law in the service of citizens in general and in the interest of all governorates without exception”

talking to you bozos!!!

Maybe the CBI will when parliament gets done playin like they are the financial auditors of Iraq!!!!

“Al-Obaidi sent a message to the members of Parliament, saying: “Honorable gentlemen, you are the legislators of the country's laws and approve of its strategy, and you are not financial auditors.”

PARLIAMENT GET OUT OF THE WAY!!!!

KTFA Members "News and Views" Saturday 1-16-2021

KTFA:

DeepWoodz:  Imo...ARTICLE 11 (see article below) this is the second time I’m mentioning this because it looks like to me this guy spilled somebodies BEANS....check it

”indicating that "the commission The Supreme Council for the Census called for allocating 140 billion dinars to conduct the census, and this amount was reduced to 130 billion dinars after discussing this issue with the Minister of Planning,but after the budget was approved by the Cabinet and voted on in the House of Representatives, the amount allocated for expenditures was reduced to 60 billion dinars.”

NOT ONLY did he say the HoR has already voted but gave the amount the census ended up at.

Sounds over to me!

SOUNDS LIKE IT’S UNANIMOUSLY DONE 

Post #11:  Samson:  The planning reveals the steps required to limit the increase in population growth in Iraq

15th January 2021

Today, Friday, the Ministry of Planning revealed the measures that can be followed to reduce the increase in population growth occurring in Iraq, confirming that conducting the electronic census requires the purchase of 150 thousand tablets.

The Director General of the Census Executive Department at the Central Bureau of Statistics at the Ministry of Planning, Samir Khudair Hadi, said, "There are many measures that the National Committee for Population Policy and the Higher Population Council can take," pointing out that "among these measures are reducing the number of births, family planning and health care for adults." Age, among other things, can be taken to reduce these steady increases in population."

Hadi explained that "conducting the electronic population census requires purchasing 150 thousand tablets and distributing them to the number of researchers, supervisors and store managers, in addition to that there are other field works that support the process of deduction, numbering and inventory, training and population counting operations," indicating that "the commission The Supreme Council for the Census called for allocating 140 billion dinars to conduct the census, and this amount was reduced to 130 billion dinars after discussing this issue with the Minister of Planning, but after the budget was approved by the Cabinet and voted on in the House of Representatives, the amount allocated for expenditures was reduced to 60 billion dinars.

He pointed out that "this amount is not sufficient to conduct the census process because tablets alone cost between 40 billion dinars to 45 billion dinars in addition to that there are supervisory centers in the governorates, a main data center, an alternative information center, and it needs a number of servers, computers, other costs and field work within."

Geographical information and electronic tribal experiences are all works, as is the process of assertiveness and the descent of researchers, general directors, assistants, and researchers to the field requires large sums," noting that "the commission will contract with people or assign the Ministry of Education to the issue, and therefore they must be given at least incentive bonuses or their fees."

Hadi added that "the infrastructure must be provided, which are tablets, servers, private computers, main and alternative data centers, communication centers, and supervisory centers in the governorates until a great way is made to implement the census as a field measure," stressing that "it is possible for the census to go to the 2022 budget if the required amounts are not available." To implement the census in the 2021 budget.   LINK

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Don961:  Reducing Exchange Rates in Iraq: Timing and Implications

Decision-makers, experts and businessmen called for a reduction in the exchange rate of the Iraqi dinar several years ago. Reducing the value of the local currency was a governmental requirement in the seasons of declining oil revenues due to the decline in oil prices in global markets, a desire to maximize oil revenues in Iraqi dinars and provide partial funding for the budget to compensate for a procedure Sharp cuts in government expenditures due to the violent economic and social repercussions it may leave on the public, especially the employee class in public institutions.

As for the other team, experts and businessmen, the motives for lowering the exchange rate of the dinar were different, in terms of timing and purpose. The arguments of this trend focused on the need to reduce the value of the Iraqi dinar to support the national product by raising the competitiveness (local and international) of national goods. 

Despite the strength of the economic logic of this argument, the success of this policy is related to the implementation of a package of initial policies to encourage private investment, such as providing a stable political and security environment, an attractive and supportive business climate for investment and the private sector, drying out corruption and bureaucratic cycles, and providing the necessary infrastructure (such as electric energy) to ensure the private sector embarked on the advancement and development. .

We have dealt with the risks and the expected repercussions of the decision to reduce the exchange rate of the dinar without securing the preconditions for the success of such a policy in achieving the economic and financial goals that advocates of devaluation seek, in several articles. The last of these articles was published in the middle of October of last year in the Al Furat Center for Development and Strategic Studies under the title (The Current Financial Situation and Call for Reducing Exchange Rates). The article dealt with the features of the current financial situation and the most prominent sources of financing available, while familiarizing themselves with the deficiency of calls to reduce the value of the Iraqi dinar from realizing the naturalness of the economic, financial and social costs resulting from this policy compared to the returns that may be realized now. 

In terms of timing, resorting to reducing the value of the Iraqi dinar to finance the financial resources gap is an inappropriate option at the present time, and for several reasons, the most important of which are:

1- Weak government revenues generated by this option, estimated at (650 billion dinars) per month, that is, approximately (8) trillion dinars annually, if the exchange rate of the dinar is reduced to (1450) dinars against the dollar, compared to the economic and social costs of reducing real incomes For employees and raising pessimistic expectations at the level of investment and consumption, thus retreating overall demand rates and deepening the existing economic recession as a result of the repercussions of the Corona pandemic.

2- The high exchange rate of the dollar in a country that depends on import to feed domestic demand for various types of goods and services generates spiral inflationary pressures that erode the cash incomes of the middle classes and seriously crush the poor classes, especially with the absence of effective government control over traders and suppliers of various types of imported goods to the market Iraqi.

3- The central bank’s foreign dollar reserves remain within comfortable ranges (above 50 billion dollars), which makes the domestic borrowing policy possible even with the widening gap between the Ministry of Finance’s sales to the central bank and the latter’s sales of dollars to the private sector, which gives the central bank an opportunity to compensate The decline in Iraq's imports of oil dollars until the end of 2021.

4- Reducing the value of the Iraqi dinar at this stage cannot be considered a necessity to raise the ability of the national product to compete for several reasons, the most important of which is the lack of flexible production capacities and national goods capable of competing in the local and international markets for the purpose of supporting them by reducing the exchange rate of the dinar.

5- Many national commodities, although few, depend on production requirements imported from abroad, and the rise of the private sector needs to import machines and a number of all in foreign currency, which increases production costs and thus reduces the opportunities for the private sector to invest, especially with the bleak prospects for markets. Because of the repercussions of the Corona virus.

6- It is very likely that the procedure to reduce the value of the Iraqi dinar will lead to strong speculation on the dinar by transferring the cash balances (hoarded and saved) from the dinar to the dollar in order to preserve the real value of those assets, which leads to an increase in the demand for the dollar and the transformation of local exchange systems towards dollarization, as happened In Lebanon.

The truth of the matter is, many of the above caveats were realized during the previous weeks and days, after the media option of reducing the dinar exchange rate was proposed by many governmental and parliamentary agencies to overcome the salary crisis and the financial deficit in the 2021 budget. %) From mid-November to December, to reach about 220 million dollars a day, after it was about 150 million dollars a day, despite the decline in merchandise imports during this period. 

Most of those dollar sales have replaced the Iraqi dinar in the market, driven by speculation on the decline in the value of the dinar by banks and major merchants, or to preserve the purchasing power of cash balances and to hedge against inflationary tax for the public (hoarders and savers).

As for the price level, the scene did not differ much. The decision to reduce the value of the dinar against the dollar, from (1190) dinars for the dollar to (1460) dinars for the dollar, confused the local markets in a way that exceeds the reduction rate of (22%). As many basic commodities such as medicines and foodstuffs rose to ranges ranging between (30-50%) and perhaps more for some essential commodities, in an accurate depiction of the weakness of government oversight and accountability in controlling and directing the behavior of major traders and price controllers.

On the other hand, many vital sectors in the Iraqi economy, such as the building and construction sector, witnessed a remarkable recession due to the high prices of most of the inputs of this sector of iron, cement and other materials, which means disrupting the activity of a pivotal sector in generating employment opportunities for millions of workers with various skills.

In Iraq, oil revenues are distributed in several directions, the first trend being among the various workers in government institutions in the form of salaries and wages, the higher and private ranks hold the largest percentage. While the other part is distributed to the public in the form of public services (health, education, etc.), support and social protection programs (very limited), as well as the ration card.

The third and intangible trend is the difference between the real exchange rate and the official exchange rate fixed by the central bank. Which in fact represents the distribution of part of the oil revenue to all Iraqis in the form of enhancing the purchasing power of the dinar against the dollar and thus increasing the real incomes of all members of the Iraqi people, especially the poor and vulnerable segments that have been affected by the change of the exchange rate due to the decline in the purchasing power of the dinar with the limited entry of this Categories.

The reduction in the value of the Iraqi dinar came mainly to finance the huge deficit in the 2021 budget and not to achieve economic reform and raise the competitiveness of the national product. Especially with the continuing decline in oil revenues and the government's inability to reduce expenditures or maximize non-oil revenues in the short term. 

However, the timing of the implementation of the exchange rate policy is not appropriate for the economic recession caused by the Corona virus. Especially with the inclusion in the 2021 budget of salaries, tax increases and investment expenditures, which exacerbate the impact of the double shock (financial and monetary), which outweighs the ability of the fragile Iraqi economy to adapt and continue.

LINK

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Samson:  The United Nations appoints a new official for the elections file in Iraq from Iceland

16th January, 2021
The Secretary-General of the United Nations, António Guterres, announced today, Saturday, the appointment of Injeburg Solon Gisladottir from Iceland, the new deputy of his special representative for political affairs and electoral assistance in the United Nations Assistance Mission for Iraq (UNAMI).

Giladottir will succeed Alice Walpole of the United Kingdom, whose mission will take place at the end of February, according to a statement issued by the United Nations today. She worked for the Bureau for Democratic Institutions and Human Rights, the Organization for Security and Cooperation in Europe, and most recently as head of the organization’s mission to monitor elections in Ukraine. She was the regional director of the United Nations Organization for Women in Europe and Central Asia, her country representative in Turkey and Afghanistan, and she was Minister of Foreign Affairs of Iceland from 2007-2009, and a member of her country's parliament for 7 years. Giladottir holds a BA in History and Literature from the University of Iceland and has also completed postgraduate studies in History at the University of Copenhagen.

The Iraqi Prime Minister, Mustafa Al-Kazemi, announced that the parliamentary elections will take place on June 6, 2021, pledging to provide international monitoring of the electoral process. Al-Kazemi's announcement of the election date was welcomed by the United Nations and pledged to support and work on its success. However, the positions of the political blocs are still vague and divided about the date and the mechanisms for holding the elections.

On Thursday, the Independent High Electoral Commission in Iraq informed the three presidencies and political blocs of their inability to hold the early elections scheduled for June, according to what a responsible source said.   LINK

Samson:  The arrest of a gang specialized in counterfeiting local and foreign currency in Basra

16th January 2021
The intelligence agency operating at the Ministry of Interior reported, on Saturday, that a gang specialized in counterfeiting local and foreign currency had been arrested in Basra.

The agency stated, in a statement that Mawazine News received a copy of, that "through the arrival of accurate intelligence information, the detachments of the Intelligence Agency represented by the Basra Intelligence Directorate in the Ministry of Interior were able to arrest a gang consisting of five accused, including a woman counterfeiting foreign and local currency."

She added, "The arrest took place after the formation of a specialized team and the luring of one of the gang members and his evidence, the rest of its members were arrested in Basra Governorate, and for the alleged crime and in their possession (5) laser printers, color reproduction devices, inks, counterfeit paper and a counterfeit currency of (11,300,000 Iraqi dinars)) And (65 papers of counterfeit US $ 100), in addition to seizing (5) different pistols, narcotic substances estimated at few fines, abuse tools and a paper-cutting machine used for counterfeiting."

And it indicated, "The defendants, along with the seized materials, were handed over to the competent authorities according to a receipt for my assets."   LINK

KTFA Members "News and Views" Friday Afternoon 1-15-2021

KTFA:

DeepWoodz:  Another day is passing and I will soon say we are one more day closer to success. 

But after that statement, one has to ask.....What is Iraq waiting on?

Some will say the budget to be voted on and approved. 

Others will say it’s just the way Iraq is. 

Still others will simply say as soon as God permits it. 

To some extent, I agree with both of the first suggestions. The last is like duh....no kidding. Goes without saying. 

NONE of these answers to me, are completely acceptable. 

I’m definitely ignorant to the inner workings of a National currency’s re-Instatement, coupled with a re-denomination, as well as a re-valuation. I mean, I think the IDN, or more familiarly known as the IQD, has it all. 

1)???Turns out they have now settled ALL BUDGETS. They mentioned for the first time I’ve seen, 2013, & 2014 budgets being cleared up recently. On top of what we already knew about...2018, 2019, and 2020. Now to the 2021. 

2)Iraq isn’t the same since Kadhimi and Trump. That settles that. 

3) So let me be clear so I don’t get judged incorrectly. God was born ready (figure of speech) so we definitely aren’t waiting on Him. 

—They have recently hit the SWEET SPOT on the 000’s, not to mention the other 17+ items that are above our pay grades. 

—We know the CBI controls the rate, and now parliament knows it to. 

—We know the CoM sat on the budget for at least a couple weeks before passing it to parliament. So to believe parliament is somehow in control of the release date is absurd. 

I just don’t know. Anybody have something fresh? 

It’s been said before and I didn’t agree but....Do you think we are waiting on Trump?  

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SCollie:  Well said...for a while now I believe Iraq has been done.  Their is no way it would take this long for anyone to do anything!!  

This is bigger than Iraq, this about a new world financial system!!   And I have heard Iraq is the first brick on the wall.  

If I was devising a plan I would make sure the first brick, was ready first!  And that I would be waiting for the rest of the bricks.  I have also learned throughout these studies that they are changing from the world SWIFT system to a NEW BLOCKCHAIN payment system using Stablecoins.  

https://www.nasdaq.com/articles/us-federal-regulator-says-banks-can-conduct-payments-using-stablecoins-2021-01-04

Again, this is much larger than just Iraq.   They entire monetary system is getting ready to flip upside down and rolling out a new system.   I can’t imagine them waiting on Iraq.... 

I feel Iraq is waiting on them!!!     Lets see what happens next....

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Godlover:  You have some valid points & questions, to which no one on this forum can honestly know for sure. I will add my theories to your theories. 

What is Iraq waiting on? It had been shared by Eddie on cc's that their stating the white papers are in the 2021 budget. This of course has been something I had been stressing the last half of 2020 because the articles were stating this. We see more & more evidence in this as the days go by. At this point there is no reason to think otherwise.

So again...what is Iraq waiting on? Certainly parliament does play a roll in the release....this should be obvious. Is their delay in voting on the budget orchestrated? Possibly, although, answering can only be theorized. None the less, we await the readings & the vote. I am still of the mindset that after parliament, prior to POR signing...the new rate calculations will be amended. But that of course is just my speculation. I still only wait on the 2021 budget opening & what is exposed then. What's within a budget, is only usable upon opening.

Funny you mentioned IDN & I am surprised no one else has mentioned it, maybe you or the article got the symbol order mixed up? Just got me to thinking about something that was brought up on the forum here many years ago. NID which was speculated as being the symbol for the "New Iraqi Dinar". Just thought it was ironically coincidental.

As far as waiting on Trump? I do not think it's impractical to believe what's happening in the USA isn't a potential factor. Not so much Trump, but the seating of our government....whomever it may be.

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

DeepWoodz:  Imo...So let me run this by you for clarification on the President, as I made this statement privately. 

So yea, on the Trump thing. I’m not really thinking Trump would be holding it up for any selfish reasons. More along the lines of this....to prevent the wrong hands from benefitting somehow. Maybe until all the electronic countermeasures for transparency are complete? To make sure everything is traceable.

Its a stretch, but if I were an influencer to Kadhimi, you know, if he was my associate, I would want to know where every new dinar in the Middle East was headed. Got to be a whole lot of bad guys holding. 

Still hoping Trump really is the chess player that’s been hinted at. If so, check mate will be on the 20th and I will be happy. With or without the blessing. Don’t get me wrong, I would much rather have it than not, and I believe it’s coming, but sometimes humans get it twisted and I’m no exception.  

Solorat:  I may be way off base on this. But maybe they have been controlled by sanctions and Iran & the U.S. for so long. They are a bit scared to take the final foot steps to be in control of their own destiny.

DeepWoodz:  Imo...that’s a solid point! Change is hard sometimes, especially mentally. 
I think you have to look at all the real work they have put in the last year or two. MASSIVE. Even Kadhimi called it a Caesarean section of reforms...which is exactly what you are eluding to!

Samson:  Upcoming meetings to discuss the recovery of the smuggled money outside the country

13th January, 2021

The Parliamentary Integrity Committee revealed, on Wednesday, January 13, 2021, an upcoming meeting with the Integrity Commission to discuss the file of recovering money smuggled outside the country.

The head of the committee, Thabet Abbas, said in a statement, "The Parliamentary Integrity Committee has a workshop to recover funds smuggled abroad in cooperation with the Funds Recovery Department at the Integrity Commission." He added, "A meeting will soon be held between the Integrity Commission and the Parliamentary Integrity Committee regarding the recovery of money smuggled outside the country."

The Parliamentary Integrity Committee had estimated earlier, the volume of money smuggled outside Iraq amounting to 350 trillion dinars, indicating that the money spent in previous years in fake contracts amounted to about a thousand trillion dinars. 

A member of the committee, Taha Al-Defense, said in a statement to the Iraqi News Agency (INA), that "the government formed a committee to combat corruption, and this committee worked during the first days clearly and significantly, but it retreated during the recent period due to political pressures," expressing, "I hope that its work will continue And the investigation of the most important files of corruption in some ministries. " 

He added, "The money spent after the year 2003 is estimated at a thousand trillion, and it includes the budgets of the operational and investment ministries, as huge funds were wasted in contracting cases, as well as the corruption that was rampant in most of the contracts contracted by the ministries and provinces."

He continued, "We did not touch any clear project that was completed in Baghdad or the provinces, and most of the projects were referred to impeccable companies, and they were dealt with according to the worst commissions, so the works were not completed, and the money was spent on simple projects, and we did not see strategic projects such as main roads and fast bridges."  LINK

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Samson:  Officially, America announces the reduction of its forces  in Iraq

01/15/2021 17:24:56

The American Acting Secretary of Defense announced that the number of American forces in Iraq and Afghanistan has decreased to 2,500 in implementation of Trump's order.

The outgoing US President Donald Trump announced that the number of US forces in Syria and Iraq was the lowest in years. "The number of American forces in Afghanistan is the lowest in 19 years, stressing his commitment to ending the long wars," Trump said in a White House statement issued Thursday evening about some of the president's military achievements.

On February 29, the Trump administration signed a historic agreement with the "Taliban" movement that provided for the withdrawal of all American forces from Afghanistan by mid-2021 at the latest, in exchange for security commitments from the movement and its engagement in direct peace negotiations with the Kabul government. In September, the number of US forces in Afghanistan reached 8,600, but the Pentagon indicated at the time that it was preparing for a new phase of withdrawal. In the same statement, Trump added: He said that $ 2.5 trillion had been invested, including all new equipment made in the United States.

Prime Minister Mustafa Al-Kazemi announced, in his speech on the occasion of the centenary of the establishment of the Iraqi army, "the withdrawal of batches of American forces within technical times during the past months, and the withdrawal of more than half of those forces will be completed in the coming days."

He added, "Only hundreds of them will remain, for cooperation in the fields of training, rehabilitation, armament and technical support, and their redeployment outside Iraq is being scheduled entirely within agreements between the two countries."  LINK

MilitiaMan and KTFA Members "Countries Can Devalue and Revalue" 1-13-2021

KTFA:

Samson:  Parliamentary Committee: The statements of the Ministry of Finance confused the Iraqi market

18:14 - 01/13/2021

On Wednesday, the Parliamentary Finance Committee described the statements of the Ministry of Finance as confusing the economic situation and the Iraqi market, indicating that the budget picture was not completed until after the second reading.

A member of the Finance Committee, Thamer Theban, told Al-Maalouma that "some statements about the economic situation are unsuccessful, including those of the Ministry of Finance."

He added that "the statements of the Ministry of Finance confused the Iraqi market and shook the economy in a direct way, and the vocabulary must be launched accurately."

Theban clarified that "the Finance Committee will seek the assistance of economic experts for the ambiguous paragraphs and the financial mandate and take them out in a manner different from what the government sent."

 MilitiaMan:  Sure it confuses the market.. They were not all ready for the devaluation. They were told in an article by the US Federal Reserve Bank that countries can and do devalue and revalue. Which apparently is about to happen in Iraq's case too. I have a feeling that the accuracy of the numbers in the 2021 are the focus and the manner in which they approach it today, could be a pivotal time frame. Today is the last day for reporting of a change if applicable with the UN. Not that is a smoking gun at all, just it is a reporting time frame. imo They have been hard at the budget for many consecutive days. The numbers after the second reading are very key.. imo.. Lets see what they do next. ~ MM

Popeye7:  Thank you MM... Very promising, and great analysis as usual... The process rolls along as we approach a day that will result in a change for the better as concerns the economic circumstances of Iraq's people... Having a reverberating effect on the world economy as well in a positive way... Of course

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

Samson:  Calls for restoring the budget and parliamentary conditions that amendment not exceeding 15 days

13:30 - 01/13/2021

Member of Parliament Nada Shaker revealed, on Wednesday, that there was a parliamentary consensus to refuse to deduct employees except for the salaries of the three presidencies and special ranks from a general manager and above, likely to be returned to the government to amend them and take into account the parliament’s proposals, provided that they are not delayed by the date of returning them to Parliament for a maximum period of 15 days or Opening a channel between the government and parliament.

Shaker said in a statement to / the information /, that “all the political blocs are unanimous in refusing to deduct the salaries of employees except for the salaries of the three presidencies, ministers, deputies, and the rank of director general and above. She added that "the consensus included the consensus of most political blocs to reduce the size of the budget, and this requires returning the budget to the government because Parliament does not have the authority to reduce the size of the budget and its authority is summarized in the issue of transfer."

Shaker explained, "In the event that the budget is returned, the parliament will oblige the government to a specific period not exceeding fifteen days to amend it according to the Council’s proposals, or a direct channel will be established between the Finance Committee and the government to take the proposals."   LINK
  

MilitiaMan:  The above is from today. The below is yesterday.

The below shows they were to have met yesterday at the Guesthouse of the Prime Ministry between the Finance Committee. I am sure the have had to have had a talk about the exchange rate being devalued and the repercussions that came with it.

They also would have had to have talks on how to best fix or reverse the circumstances. I'll bet the consensus is and will be that at 1460 there will not be any deductions for the employees, as they all ready are getting the pinch with 20-50% increases in pricing for goods and services, etc. So, sure the consensus should be unanimous.

But, also they may or do have a consensus that the exchange rate needs to have a positive effect on the citizens. Thereby, a revaluation would need to be on the table and a telling point is that may very well be the case is that the Kurds are getting payments this weekend and they will have 21% deductions. Why would the kurds not be balking at that when they too are getting pinched from a 1460 exchange rate? They wouldn't imo.. 

So the meeting yesterday and subsequently more to it today is being talked about between Allawi and Maliki suggests there is a consensus and that a package of measures are to be brought forth within two weeks  to mitigate the effects on the devaluation.

Well, imo if they Kurds are getting paid and have agreed to 21% this Sunday, suggests that the meeting at the Guesthouse may have coincided with other concerns and that would be the exchange rate to alleviate the pain at the grocery store and pocket books of the citizens.

A positive move from 1460 to something far better would be in order.

Dropping the 3 zeros is one what to do that. They have recently talked about doing just that. So, lets see what transpires this next few days. imo It looks promising. ~ MM

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

Finance Minister announces a package of measures to mitigate the effects of raising the dollar

"the ministry, within two weeks, will take a package of measures that mitigate the effects of devaluation."

LINK

Kurdistan government gives good news of salary distribution soon

https://economy-news.net/content.php?id=23568

Economy News - Baghdad

A source in the Kurdistan Regional Government announced that the Kurdistan Regional Government will distribute the salaries of its employees for the month of November last next Sunday. According to the Kurdish network Rudaw.

A source in the regional government said, "It is scheduled that the Kurdistan Regional Government will start, next Sunday, (January 17, 2021), to distribute the salaries of employees for the month of November 2020, with a deduction of 21% of them ."

A source in the Council of Ministers in the Kurdistan region stated that the Ministry of Finance and Economy has prepared salary lists and will start the process of distributing them as of next Sunday, indicating that the amounts allocated for disbursement are estimated at 400 million dollars .

The Kurdistan Regional Government needs 613 million dollars a month to secure the salaries of its employees, but it has not distributed salaries for 40 days because the Iraqi government has not sent any amount for months, and by calculating the rate of deduction of 21% of the salaries, the cost of salaries is 707 billion dinars (487 million dollars ).

 Official figures indicate that the volume of the Kurdistan Region's debt until mid-September 2020 reached 28 billion and 500 million dollars, of which 9 billion dinars are the dues of compulsory savings for employees

** **********

 Iraq 2021 budget .. Finance confirms securing the liquidity of salaries and projects without difficulties

Today, Tuesday, the Parliamentary Finance Committee is scheduled to hold a meeting at the guesthouse of the Prime Ministry to discuss the observations made by parliamentarians on the articles and paragraphs of the Federal Budget Law for 2021.  LINK

KTFA Members "Wednesday News" 1-13-2021

KTFA:

Samson:  Finance Minister announces a package of measures to mitigate the effects of raising the dollar

01/13/2021 15:38:05

The Minister of Finance, Ali Allawi, revealed the ministry's intention to take measures to mitigate the repercussions of the decision to raise the dollar exchange rate against the dinar. This came during his meeting with the head of the State of Law coalition, Nouri al-Maliki, today, Wednesday.

During the meeting, Allawi reviewed the procedures followed by the ministry in dealing with the economic and financial conditions, stressing that "the ministry, within two weeks, will take a package of measures that mitigate the effects of devaluation."

He called for "concerted efforts to overcome the current stage and its repercussions on public life "to support Iraq to face the current financial crisis, plans and actions required to overcome, and the importance of uniting efforts and solidarity among all to reduce the deficit in the general budget in order to achieve social justice."

al-Maliki "the head of the State of Law coalition renewed his call to the government not to neglect the rights of peasants and farmers and to delay the payment of their dues."   LINK

Samson: Iraqi ministries require biometric updates to distribute their employees' salaries

13th January 2021
A number of Iraqi ministries and state institutions stipulated, today, Wednesday, the introduction of the voter card to pay the salaries of their employees. 

The source told Shafaq News that a number of ministries and state institutions have started implementing the decision issued by the Council of Ministers to approve the electoral card formally.  He added that a number of ministries had directed their formations not to pay their employees' salaries until after the biometric electoral card had been updated.

In this regard, Shafaq News Agency obtained an official document issued by the Iraqi Ministry of Transport stipulating the creation of a voter card in exchange for the salaries of its employees. 

According to an official letter issued by the ministry, the ministry stipulated that the salaries of the ministry’s center employees and their formations be paid after issuing the updated biometric voter card.

The Council of Ministers voted, during its weekly session, on Tuesday, to consider the long-term biometric voter card as one of the official requirements approved in state departments, and decided to grant employees a period of 60 days to update their biometric data.    LINK

DeepWoodz:  Imo....BOOOOOOM!! Bye bye corruption! And a big chunk of their deficits!

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Don961:  Article 140 postpones the settlement of constitutional amendments

Wednesday 13th January 2021

Baghdad: Omar Abdul Latif

Article 140 of the constitution stands as an obstacle to the completion of the work of the constitutional amendments committee in the House of Representatives, which may delay the settlement of these amendments to the next parliamentary session.

Committee member Yonadam Kanna told Al-Sabah: "The committee's meetings have stopped because Article 140 of the constitution remains suspended until now, adding to it the political dispute between Baghdad and the Kurdistan region."

He added, "It was supposed to hold a meeting between the political leaderships and a joint committee of the main components in the Kirkuk governorate, which is the basis for the problem of resolving this constitutional article, but the matter is too late, and amendments may not be completed during the current session." "The amendments, even if completed, need to be passed by Parliament, and the matter may be difficult."

And we indicated, "The committee agreed to reformulate Article 140 in a new form, but the deputies of Kirkuk governorate refused to do so, which led to the article remaining unchanged and not submitted for discussion or voting." He confirmed that "the report supposed to be written by the committee chairman and the reporter We haven't seen it yet. "

Article 140 of the Constitution of the Republic of Iraq defines the disputed areas in Iraq as "those that have been subjected to demographic change and the policy of Arabization at the hands of the dictatorial regime."

The article stipulated a mechanism that includes three phases, the first of which is (normalization), which means treating the changes that occurred in the demographics in Kirkuk and the disputed areas in the previous regime and after it, and the second (population census) in those areas, and the last of which (the referendum) to determine what their residents want, before December 31, 2007.   LINK

Don961:  A member of the parliamentary legal profession talks about two indicators that prove the smuggling of hard currency outside Iraq

Baghdad Today - Special

Member of Parliament, Hussein Al-Aqabi, said, Tuesday, January 12, 2021, that there are two indicators that prove the smuggling of hard currency outside Iraq by banks operating inside

Al-Aqabi said in an interview with (Baghdad Today), "The first indicator of smuggling foreign currency, the dollar, outside Iraq, is through the amount of the annual currency auction that the Central Bank of Iraq sells, as it is not commensurate with the volume of trade entering the country"

He added that "the second indicator is related to the amount of taxes, ie the customs tariff and its revenues, and this also does not match the currency auction sales"

He continued that "the Integrity Commission is currently conducting investigations with a number of Iraqi banks, regarding the existence of irregularities regarding the receipts they provide for imports from outside the country," pointing out that "there are indications that give an almost certain impression that there is a process of smuggling foreign currency outside Iraq with a difference." The price, which is a big win for traders ”

Al-punabi expressed his support for "the supervisory bodies, the Public Prosecution Authority and the judicial authority in taking strict measures and resolving the issue, especially in investigations with banks and banks"

Earlier, a member of the Parliamentary Economic Committee, Representative Nada Shaker, submitted a proposal today, Monday (January 11, 2021), which she said would “contribute to ending the file of smuggling hard currency outside Iraq”

Shaker said in an interview with (Baghdad Today), "The file of smuggling the dollar, as it is a hard currency, is not the result of the moment, and it has been in existence for years, and in various ways by very influential parties"

Shaker added, "The dollar smuggling file can be ended through a consistent and clear mechanism, which is that every merchant or company intending to import any material or commodity submits an application for the dollar, given the quality and quantity of the material"

And that "so that the customs tariff will be deducted from the total amount that he is asking for," according to the deputy, which will lead to "preventing any attempts to smuggle the dollar out of the country through false receipts"

Jawdat indicated that "this procedure is much better than the decision to raise the dollar exchange rate and reduce the value of the Iraqi dinar, because despite its reduction in certain percentages for smuggling the dollar, but in return it caused an increase in the prices of materials and reduced the purchasing value of salaries, which created great harm to the poor"  LINK

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Don961:  There is no equality between Iraqis and foreigners before the devaluation of the dinar

 Tuesday 12 January 2021 - 6:15 Morning coffins Economic Researcher

The official exchange rate moved from 1182 to 1450 dinars per dollar. Overnight, the dinar lost 22.6% of its value. Of course, this decline is not limited to the relationship between the dinar and the dollar, but rather includes all other foreign currencies. The relationship of the dinar to all currencies is determined by the exchange rate of the dollar against these currencies.

This measure led to the discontent of citizens, who mainly suffer from a severe economic, social, security and health crisis. The prices of imported goods increased, which effectively contributed to the increase in the inflation rate. Because imports constitute a significant proportion of the GDP. Iraqis also notice an increase in the prices of local goods and services. Whenever prices rise, consumers will suffer, especially those with low and fixed incomes. Poverty has become a fundamental feature of Iraqi society.

But there is another very important point. It relates to how the various dealers with the state are affected by the devaluation of the dinar.

It is known that the most important chapter for public expenditures is the salaries of working employees. The size of these salaries moved from 50.5 trillion dinars in 2020 to 41.5 trillion dinars in the year of the 2021 draft budget. In other words, the decline is equivalent to 17.8%. 

However, the value of the dinar fell by 22.6%. Thus, 41.5 trillion dinars in 2021, equivalent to 32.1 trillion dinars, before the reduction. On this basis salaries fell by 36.4%. This situation leads to a decline in the standard of living of more than two-thirds of the population who subsist on salaries. And the suffering of all citizens, including employees and wage earners in the private sector, professionals, the unemployed and others, suffer more under the influence of additional workers. The first is direct and indirect taxes and fees, which are rising dramatically in the current year. The second is the continuing annual deterioration of the ration card allocations, which moved from 3928 billion dinars in 2008 to 648 billion dinars in 2021, that is, from 3069 million dollars to 446 million dollars. 

It is known that the decline in the purchasing power of salaries, the imposition of high taxes, the reduction and then the abolition of the ration card represent the basic items of the International Monetary Fund's program applied in Iraq. The number of the poor will then increase, and will soon move from a third to half of the population.

The second aspect of state expenditures is related to payments made to foreigners. Among them are the dues of foreign oil companies operating in Iraq, which amount to about ten billion dollars per year. These dues, unlike salaries, are estimated and paid in dollars, not in dinars. Consequently, these companies get their dues, as if the dinar’s exchange rate has not changed against other currencies.

The same analysis applies to the installments and interests of foreign debts, which amount to $ 4,730 million this year. It is due to several countries and financial institutions, foremost among which are the International Monetary Fund, the World Bank, the United States and Britain. The same provision also takes the compensation established for Kuwait and the price of Iraq's electricity and natural gas purchases from Iran.

There is no doubt that inequality between citizens and foreigners occurs in all countries that devalue their currencies. Thus, at first glance, it is not limited to Iraq. But we must distinguish between two things:

The first thing to reduce is to improve the balance of trade. Then exports would increase, domestic production would rise, unemployment would decrease, and growth would accelerate. Thus, the negative repercussions of the rise in imported commodity prices resulting from the reduction diminish. This is not happening in Iraq, as there are no exports that can benefit from the reduction process.

The second matter is to reduce financing the general budget deficit. This is the wisdom of devaluing the dinar. The fiscal deficit recorded a record of 58.2 trillion dinars in the draft budget for 2021. Because of insufficient loans to finance it, the state resorted to cash issuances, and the equivalent rate of the dinar decreased. Then, the standard of living of citizens will necessarily decline, especially those with low incomes and those with salaries.

There is no doubt a mechanism in the government sector represented in raising salaries when the prices of consumption of goods and services (allocations for the cost of living) rise. In order for the standard of living not to decline, the entire salary should rise by a percentage not less than the rate of the devaluation of the dinar. This will not happen for one simple reason, which is that any increase in salaries leads to a rise in public expenditures, thus increasing the fiscal deficit. There is therefore a clear contradiction between the increase in salaries and the devaluation of the dinar. Whereas, if the goal was to support the trade balance, the public authorities would not have hesitated to increase these allocations. 

We conclude from the foregoing that lowering the exchange rate of the dinar necessarily leads to a decline in the citizens' standard of living without affecting the dues of foreigners.

Morning coffins Economic Researcher   LINK

Samson:  Brent crude above $ 57 for the first time since last February

01/2021/13 09:20:53

 The price of Brent crude rose, according to trading data, above $57 a barrel for the first time since February 24 of last year.

As of four o'clock on Wednesday morning Baghdad time, the price of March futures contracts for North Sea oil mix from Brent rose 0.48% to $ 57.03 a barrel, and February futures contracts for West Texas Intermediate crude rose 0.66%, to $53.56 a barrel.

Oil prices continue to receive support due to optimistic expectations of demand on the one hand, as well as against the backdrop of production prospects after the decisions of the "OPEC +" group, on the other hand.

Last week, OPEC + completed a two-day meeting, in which it defined the parameters of the deal two months ago, as the current terms of the agreement were extended to almost all countries. However, Russia and Kazakhstan got an opportunity to increase production in February and March, while Saudi Arabia and a number Other participating countries, on the contrary, decided to reduce it.   LINK

Monday Night KTFA CC "They Promised Citizens Another Exchange Rate" 1-11-2021

Monday Night KTFA Conference Call 1-11-2021

With Frank26 and his team

PLAYBACK IS: 605.313.5163 PIN: 156996#

This video is in Frank and team’s opinion

Frank26:  THEY PROMISED CITIZENS ANOTHER EXCHANGE RATE"

What Franks Suit colors mean:  WHITE = NEW INFO…. SILVER = INTEL FROZEN…. RED= HIGH ALERT… PURPLE=GUEST WITH US…. BLUE = AIR FORCE…. BLACK = GROUND/FF’S…. GREEN= MR OR 3 HEADS ... GOLD = CHANGE NO BROWN ... NO GREY... NO YELLOW... NO FLESH 

https://www.youtube.com/watch?v=SgroPzjfZ6Y&feature=youtu.be

MilitiaMan Saturday PM" Looking Very Good, Very!" 1-9-2021

KTFA:

MilitiaMan:  If we go back to the article in post #43 from Samson (below) and the implications of things that COINCIDE, there is some serious things at play now. They told us they had 72 hours for to be ready for the second reading of the 2021 budget. Well they have sped that up to Monday, 24 hours. They need to do a positive change to the exchange rate at the same time of the HOR meeting or real close to it. ioo Looking very good, very! imo

Don961:  Deleting 3 zeros or printing the 100 thousand dinars denomination .. Experts determine the best to face the change of the exchange rate - URGENT

 Baghdad Today - Special

A few days ago, two proposals have been put forward to reduce the effects of the devaluation of the dinar against the dollar, which was determined by a decision of the Ministry of Finance to fix the exchange rate at 1470 dinars against the dollar after it stabilized for more than 15 years, up to 1200 dinars, which caused bad effects on citizens, raising the prices of basic materials and reducing the value of salaries

Parliament finances clarify its position

A member of the Parliamentary Finance Committee, MP Abd al-Hadi al-Saadawi, revealed, on Saturday, his committee’s opinion about deleting 3 zeros from the Iraqi currency, according to the proposals presented

Al-Saadawi said in an interview with (Baghdad Today), that “the monetary policy in Iraq is one of the exclusive powers of the Central Bank and the financial policy is subject to the authority of the Ministry of Finance and the government, which is concerned with it, and it is not from the powers of the House of Representatives and the Finance Committee, meaning that changing the exchange rate or removing zeros from the currency is not relevant. Absolutely out of the House of Representatives.

Al-Saadawi added, “We do not see any tendency at the present time to delete zeros from the Iraqi currency by the central bank,” pointing out that “even the exchange rate of the dollar is subject to the powers of the central bank and it was recently raised after a decision inside the bank and if the government has another opinion about the exchange rate, then this matter Up to her ”

Expert: There are pros and cons

In turn, economist Safwan Qusay says in an interview with (Baghdad Today), "There is no urgent need to issue a new paper currency with a denomination of 100,000 Iraqi dinars or more, and the proposal to delete the zeros requires a bank effort and withdraw the circulating currency"

On the other hand, he added, "the level of circulation of the Iraqi dinar is very easy, therefore printing a large currency in denominations of 100 thousand Iraqi dinars or more will facilitate the process of large financial exchange," indicating that "the responsibility and task of issuing these categories of currencies rests with the Central Bank"

He continued, "The process of issuing money needs financial cover in hard currency or gold, in addition to the market’s need for time to absorb the level of devaluation of the local dinar that the government has recently undertaken

Qusay pointed out that "the step of deleting zeros from the currency raises the level of confidence in the dinar and reduces the burden of transferring cash as well as calculations, but conducting it now may confuse the market because it needs to withdraw the dinar from traders and inject a new currency"

Turn 

Earlier, the former budget director at the Ministry of Finance, Hazem Hadi, confirmed that the devaluation of the local currency in the country caused a shock in the market, while the shock that occurred was necessary to finance the budget deficit instead of endangering state sovereignty, as he described it

Hazem Hadi said, in a televised interview with (Baghdad Today), that the advantages of the financial budget for the next year are "saving money and avoiding borrowing, because the size of the debt to Iraq has become very large and reached 160 trillion dinars, including internal and external loans"

Hadi added, "The internal debt decreased automatically with the rise in the value of the dollar against the dinar," indicating that "the shock that occurred in the market was inevitable, because covering the financial deficit by borrowing includes major disadvantages, including the loss of state sovereignty"

He pointed out that "the failure of the economic policy in the country in the past years has made Iraq a market for imported goods, and the Iraqi market has been flooded with these commodities, and also led to a decrease in revenues due to the decline in the price and production of oil, and all these factors caused a major financial crisis for the Iraqi economy"

Since the collapse of oil prices earlier this year, Iraq is facing an unprecedented liquidity crisis, the government of Prime Minister Mustafa Al-Kazemi has had to borrow from the reserves of the Central Bank to pay nearly $ 5 billion a month, representing public sector salaries and pensions

The Iraqi local markets in Baghdad and other provinces have been turbulent since last week, after the decision to devalue the currency to compensate for the deficit in the 2021 budget

The decision sparked a wave of anger in the Iraqi street, but Al-Kazemi defended his government's move and said that he had two options: “Either the collapse of the regime and enter into overwhelming chaos, or we enter into a Caesarean section for reform

Al-Kazemi cited during a speech at the Iraqi Cabinet session held last Saturday, in several countries, including South Korea and Singapore, when they had previously taken "difficult decisions" in order to reform the economy  LIN

MilitiaMan: To protect the citizens is to delete the zeros!! imo This is HUGE.. Wow. ~ MM

""She hopes that these procedures will coincide with discussions within the House of Representatives on the budget, and it should be noted that the main policy measures to protect the poor and the vulnerable have been included in the budget and discussed in the minister's statement regarding the budget."

Agenda for the parliament session next Monday

The House of Representatives announced, on Saturday, the agenda for its session scheduled for .next Monday, at 3 pm The agenda included 9 paragraphs, including the completion of the second reading of the 2021 .Budget Law

Baghdad Today - Follow-up Al-Fateh Alliance MP Mukhtar Al-Mousawi presented an apology to the Iraqi people on the 2021 budget on Saturday 9-1-202. "I apologize to the Iraqi people, because the budget is supposed to be enacted within 24 hours after the start of the debate over it, because the people are awaiting approval, but I say, unfortunately, that there are points that must be amended," Moussawi said in a televised statement followed by (Baghdad Today).

He added that "there are 17 points that require amendment and not to hasten to approve the budget, including raising the value of taxes for cigarettes and alcoholic beverages from 20-50%. This increase, if achieved, will obviate the imposition of taxes on the entry of employees."

Earlier, a member of the Finance Committee in Parliament, Jamal Cougar, confirmed that the salaries of employees will be spent for the current month of January, while indicating that there is no deduction in salaries, unless the Federal Budget Bill for 2021 is passed in the House

KTFA Members "News and Views" Saurday 1-9-2021

KTFA:

DeepWoodz: Imo... So they are achieving an equal balance between the local markets prices on dollars and the CBI rate. Is that a SWEET SPOT? A good sign for sure! Somebody is running out of dollars and it ain’t the CBI.

Samson:  Today, Saturday, the exchange rates of the dollar are resuming in the local markets

9th January, 2021
The exchange rates of the dollar recorded a rise in the main stock exchange and local markets for this Saturday.

A reporter / Mawazine News reported that "the exchange rate of the dollar against the dinar recorded an increase in the Kifah Stock Exchange in the capital, Baghdad, as the selling price reached 144,500 dinars for each $ 100 bill, while the purchase price reached 143,500 dinars, for each $ 100 bill." 

He added, "The exchange rates in the local markets also witnessed a rise, as the selling price of the dollar reached 144,000 thousand dinars for every 100 dollar bill." And that "the price of buying the dollar in the local market recorded 142,000 thousand dinars, for each $ 100 bill."     LINK

Clare:   THANKS DON! I BET THE CBI KNOWS WHAT REALLY IS GOING TO HAPPEN! IMO 

Don961:  Deleting 3 zeros or printing the 100 thousand dinars denomination .. Experts determine the best to face the change of the exchange rate

Baghdad Today - Special

A few days ago, two proposals have been put forward to reduce the effects of the devaluation of the dinar against the dollar, which was determined by a decision of the Ministry of Finance to fix the exchange rate at 1470 dinars against the dollar after it stabilized for more than 15 years, up to 1200 dinars, which caused bad effects on citizens, raising the prices of basic materials and reducing the value of salaries.

Parliament finances clarify its position

A member of the Parliamentary Finance Committee, MP Abd al-Hadi al-Saadawi, revealed, on Saturday, his committee’s opinion about deleting 3 zeros from the Iraqi currency, according to the proposals presented.

Al-Saadawi said in an interview with (Baghdad Today), that “the monetary policy in Iraq is one of the exclusive powers of the Central Bank and the financial policy is subject to the authority of the Ministry of Finance and the government, which is concerned with it, and it is not from the powers of the House of Representatives and the Finance Committee, meaning that changing the exchange rate or removing zeros from the currency is not relevant. Absolutely out of the House of Representatives.

Al-Saadawi added, “We do not see any tendency at the present time to delete zeros from the Iraqi currency by the central bank,” pointing out that “even the exchange rate of the dollar is subject to the powers of the central bank and it was recently raised after a decision inside the bank and if the government has another opinion about the exchange rate, then this matter Up to her ”

Expert: There are pros and cons

In turn, economist Safwan Qusay says in an interview with (Baghdad Today), "There is no urgent need to issue a new paper currency with a denomination of 100,000 Iraqi dinars or more, and the proposal to delete the zeros requires a bank effort and withdraw the circulating currency"

On the other hand, he added, "the level of circulation of the Iraqi dinar is very easy, therefore printing a large currency in denominations of 100 thousand Iraqi dinars or more will facilitate the process of large financial exchange," indicating that "the responsibility and task of issuing these categories of currencies rests with the Central Bank"

He continued, "The process of issuing money needs financial cover in hard currency or gold, in addition to the market’s need for time to absorb the level of devaluation of the local dinar that the government has recently undertaken

Qusay pointed out that "the step of deleting zeros from the currency raises the level of confidence in the dinar and reduces the burden of transferring cash as well as calculations, but conducting it now may confuse the market because it needs to withdraw the dinar from traders and inject a new currency."

Turn 

Earlier, the former budget director at the Ministry of Finance, Hazem Hadi, confirmed that the devaluation of the local currency in the country caused a shock in the market, while the shock that occurred was necessary to finance the budget deficit instead of endangering state sovereignty, as he described it

Hazem Hadi said, in a televised interview with (Baghdad Today), that the advantages of the financial budget for the next year are "saving money and avoiding borrowing, because the size of the debt to Iraq has become very large and reached 160 trillion dinars, including internal and external loans."

Hadi added, "The internal debt decreased automatically with the rise in the value of the dollar against the dinar," indicating that "the shock that occurred in the market was inevitable, because covering the financial deficit by borrowing includes major disadvantages, including the loss of state sovereignty."

He pointed out that "the failure of the economic policy in the country in the past years has made Iraq a market for imported goods, and the Iraqi market has been flooded with these commodities, and also led to a decrease in revenues due to the decline in the price and production of oil, and all these factors caused a major financial crisis for the Iraqi economy."

Since the collapse of oil prices earlier this year, Iraq is facing an unprecedented liquidity crisis, the government of Prime Minister Mustafa Al-Kazemi has had to borrow from the reserves of the Central Bank to pay nearly $ 5 billion a month, representing public sector salaries and pensions

The Iraqi local markets in Baghdad and other provinces have been turbulent since last week, after the decision to devalue the currency to compensate for the deficit in the 2021 budget

The decision sparked a wave of anger in the Iraqi street, but Al-Kazemi defended his government's move and said that he had two options: “Either the collapse of the regime and enter into overwhelming chaos, or we enter into a Caesarean section for reform

Al-Kazemi cited during a speech at the Iraqi Cabinet session held last Saturday, in several countries, including South Korea and Singapore, when they had previously taken "difficult decisions" in order to reform the economy   LINK

Samson:  Deputy reveals preparations for new demonstrations against the government

9th January, 2021

A deputy in Parliament, Basem Khashan, revealed, on Saturday, preparations for new demonstrations against the government.

Khashan said, "The demonstrations, which are being prepared, will start in Baghdad, and demands will be raised, including reforming the judiciary." He indicated, "It may extend to other governorates."

Concerning the arrests and threats to activists in the demonstrations, Khashan said that "the parties threatening the demonstrators are known, including currents close to the authority."   LINK

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

Samson:  Absence of justice and reform .. Cougar reveals the most prominent observations on the 2021 budget

01/09/2021 13:25:53

 A member of the Parliamentary Finance Committee, Jamal Cougar, revealed, on Saturday, the most prominent notes on the 2021 budget.

In an interview with the Euphrates News Agency, Cougar said that there are several observations on the 2021 budget bill, the most prominent of which is the lack of fairness in the distribution between the provinces, and the lack of a reform imprint with regard to the ministries and the distribution of resources to them. He added that "reforms are absent in the budget except for the deductions and these." They are not called reforms, and what is in place in terms of reforms in this budget are taxes and deductions. ”

He stated that “there are no clauses in the budget for fighting corruption and no clauses about smuggled money and alien money and dealing with these points, ”stressing that“ even the reforms in it do not include timings, as an example of that. Automating border crossings and multiple salaries, no timing has been set.  He explained that "among the important notes are the exaggerated numbers in the budget," stressing that "It is unreasonable in 2020 that an actual 72 trillion will be spent, and the new budget comes in at 164 trillion, which means twice the budget of the previous year + 20 trillion.

It is noteworthy that the House of Representatives will hold its session today, Saturday, to discuss the draft federal budget law for the current year 2021.   LINK

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

Don961:  The economic theory remains that the exchange market is an information market that efficiently controls decisions on the supply and demand sides and the formation of prices and their ranges. It is a market highly affected by the quality and adequacy of the information available. 

After the recent price shock in the exchange rate shock caused by monetary policy on December 19, 2020, by making a sudden reduction in the exchange rate of the Iraqi dinar by about 22% at once, and the dollar was offered from the window of the Central Bank of Iraq to buy and sell foreign currency at a new strict exchange rate and its rise in favor of the dollar from 1182

One dinar to 1450 dinars per dollar is a price phenomenon that still has profound effects on commercial exchanges and the movement of cash transactions in financing trade in general and the secondary or parallel exchange market in particular. 

As this price shock led to the contraction of the parallel market and the change of its characteristics, behavior and dealings, especially with the official central market as well as the interactions in it.

To continue reading, click on the following link  link

The appearance of Muhammad Salih - The Inverted Functions in the Parallel Exchange Market in Iraq - Liberated 2

Don961:  What is the fate of Iraqi money smuggled abroad?

- 5 Hours Elapsed

Iraqi money smuggled abroad has always been the focus of Iraqi attention, but it has increased in the recent period with the exacerbation of the financial problem that the country is going through, until it has generally become the focus of attention and a major demand for Iraqis, with the large size of these funds and the possibility of providing radical solutions to the great financial impasse. in Iraq.

High defendants and a political system that provides protection

Observers describe the state of corruption that the country has been experiencing for several years as being carried out by political agreement to share the country's capabilities through the ruling political class, while observers exclude that the current government or any other government will settle those files and recover smuggled money or arrest the main ones involved in them.

Perhaps the first of these operations was through the Minister of Defense in the first government of former Prime Minister Iyad Allawi, Hazem Al-Shaalan, who fled the country with about one billion dollars, and Iraqi courts have sentenced him to seven years in prison, but he is still outside Iraq as well as not recovering that money.

In addition to Al-Shaalan, there are many ministers, heads of bodies and officials who are accused or those who have been judged in corruption cases in billions of dollars, most notably the former Minister of Electricity, Ayham al-Samarrai, who escaped from prison outside the country.

And officials in the fight against corruption reveal that an official request from Iraq was submitted to the United States earlier to recover Al-Samarrai based on the legal and judicial cooperation agreement between Baghdad and Washington, but the American side did not respond to these calls because Al-Samurai holds American citizenship.

The other prominent file is the file of the Minister of Trade in the government of former Prime Minister Nuri al-Maliki and a member of the Dawa Party, Abdul Falah al-Sudani, who was accused of stealing $ 4 billion, and Iraqi courts sentenced him to 21 years imprisonment after his escape abroad.

Al-Sudani was handed over to the Iraqi authorities by Interpol in January 2018, but Iraqi courts released him in November of the same year, as the court's decision stipulated that he was released so that the complainants waived and decided to include him with a general amnesty.

This incident was followed by many other incidents and corruption deals that are still going on until recently, without resolving or taking legal measures against high-profile figures accused of them, and in many cases being satisfied with announcing that measures have been taken against moderate cadres in the Iraqi state.

The deep state and the victims of opening those files

What reinforces the belief in the large scale of corruption in Iraq is the amount of money that has been smuggled abroad as a result of systematic corruption operations that have been administered over the past years, as some estimates from former officials in Iraqi anti-corruption institutions reach that the amount of smuggled money amounts to 600 billion dollars, while Deputies in the Parliamentary Finance Committee and economists estimated the amount of money smuggled abroad at about $ 350 billion.

Member of the Finance Committee in the Iraqi Parliament, Representative Jamal Cougar, said, "Official figures for the amount of smuggled funds are not available, but estimates range from $ 250 billion to $ 350 billion, as mentioned by former Prime Minister Adel Abdul Mahdi in one of the discussions of the three presidencies."

He adds, "So far, Iraq does not have a mechanism in the context of retrieving that money, and we have not seen a real will to open this file," ruling out that Iraq will witness real movement in this context in the near future.

Cougar points out that what prevents the move to resolve this file is the fact that "the political actors who fled that money are still in power and represent the deep state."

He points out that "whoever opens this file will be a victim, as happened with the prominent politician Ahmed Chalabi and other integrity judges and others."

He continues, "This file is still dead because it is a political file par excellence and needs strong will and real mechanisms from the Iraqi government," noting that the Iraqi government is weaker than the parties and this is the main obstacle to resolving this file.

The Iraqi MP believes that the most appropriate mechanism for resolving the file of smuggled funds is through "handing over the file to international companies specialized in this field."

On the internationalization of corruption files and smuggled money, Cougar explains that "the Iraqi government has so far been unwilling to move in this context and does not have a real will, despite Western countries expressing their willingness to cooperate." Those endeavors ”.

Cougar concludes, "We have proposed several steps in this context, the first of which relates to exempting those involved from legal prosecution in exchange for returning those funds, and giving a percentage to informants of corruption money, yet there is no real will in the context of moving to resolve this file."

Corruption protection of the political system

On the other hand, the former head of the Integrity Commission, Judge Rahim Al-Aqili, estimates that the amount of money smuggled abroad is up to “600 billion dollars, because most of the corruption money is smuggled abroad,” indicating that “this volume of money is added to corruption money from outside the country's general budget, which It will reach the limits of another $ 600 billion through the seizure of internal state resources, including state real estate, natural resources and other aspects.

Al-Aqili pointed out that “recovering money smuggled abroad is a complex issue in all experiences around the world, and even what succeeded from those experiences continued for at least twenty years,” indicating that many complex reasons stand in the way of embarking on resolving this file, the most important of which is “failure The interest of successive governments and state institutions in this file, which requires the conclusion of bilateral agreements with the countries to which Iraqi funds have escaped, and the opening of legal channels for dealing with them.

And he continues, "Iraq has not put pressure on the countries that benefit from economic cooperation with him in this context, and no agreements have been concluded regarding the exchange of suspects."

The judge believes that the influential forces are keen to protect those accused of corruption for two reasons: “The first is that these forces want to continue with thefts, and the second is related to fear of threats to expose the accused to other parties involved,” noting that “the tools of oversight and the law are unable to resolve these files due to political influence. Who exerts pressure on her and prevents her from carrying out her duty, which led to the persistence and rampant corruption.

He believes that "many officials involved in corruption files have protected their other nationalities and laws that prevent the extradition of the accused."

Al-Aqili pointed out that “the threats and pressures that are exerted on the agencies concerned with combating corruption are boundless, but the pressures that lead to results are those that are exerted on judges, who do not enjoy security or job protection,” adding that “empowering the state’s tools concerned with combating corruption is The main focus for resolving this problem is not exceptional solutions, but rather strategic and institutional solutions that adopt stable and continuous rules.

He concludes that "the pillars of combating corruption are not limited to the investigative tasks and prosecution of the accused. There are steps that are no less important, such as imposing transparency, when everything is revealed in relation to corruption."

Influential people involved, and official procedures are absent

It seems that what complicates the resolution of this large file, which testifies to the great corruption of the current political era, is the involvement of influential figures and parties in these files, in addition to the failure of official tools to initiate internal procedures to prosecute the major accused and then start to approach external authorities to recover these funds.

On the other hand, a professor of economics at the Iraqi University, Abdul Rahman Al-Mashhadani, explains that “the return of smuggled funds requires at least five years, in addition to the necessity to institute legal cases against the accused inside Iraq and then go to foreign countries to seize these funds,” indicating that this task "Not easy."

He adds, "Estimates on these funds vary, but they are mostly estimated at 350 billion dollars, despite the existence of other estimates up to 600 billion dollars."

On the government's actions in this regard, Al-Mashhadani believes that "this file requires initiation of steps inside Iraq, and then the formation of an international lawyers team to follow up the file externally."

Al-Mashhadani points to an easier proposal related to “the possibility that the public prosecution team may file cases against those involved in corruption in the countries in which these funds are kept for seizure,” adding that “this procedure will limit the continuation of these operations.”

He points out that "the majority of countries are ready to cooperate, but Iraq has not taken the first steps because those involved in these issues are mostly influential officials in the Iraqi state."

Leaks about a political agreement

Despite observers' talk about the inability of the Iraqi government to resolve the file of money smuggled abroad and prosecute those involved in corruption cases, Iraqi newspapers reported news through informed sources, revealing an agreement between the Iraqi government and the heads of all political leaders to issue arrest warrants against officials. Involved in theft and smuggling of funds.

The Iraqi newspaper Al-Mada quoted unnamed sources as saying that “the committee has completed investigations with a number of government officials, and will soon issue arrest warrants against 22 officials between a former and current minister, an undersecretary, a director general, and the head of an independent commission,” expecting that “the deal will be returned nearly Approximately 150 billion dollars to the state treasury.

The newspaper, quoting the source, indicated that "the accused involved in large corruption files will be brought before the courts in the near future," while the source said that "the agreement stipulated the release of those accused or those involved in stealing money in exchange for returning it to the state treasury."

Show attempts

In a related context, observers rule out that the government will initiate the settlement of this file, especially given that it is unable to resolve its confrontation with groups outside the framework of the state, indicating that it is nothing more than show attempt.

On the other hand, Professor of Political Science Iyad Al-Anbar believes that “political will does not seem to be available to the current government in resolving these files,” indicating that “political forces will not allow the opening of corruption files because everyone is involved in them, in addition to the fact that the existing political norm does not classify hegemony over these files. State resources as corruption ”.

Regarding Al-Kazemi's ability to resolve these files, Al-Ambar points out that “Al-Kazemi is unable to fight the forces outside the framework of the state and that dominate more than one place of corruption, so how will he confront political partners who control state institutions”, pointing out that “any attempt to fight corruption begins with forming Parallel committees for the institutions concerned with this file are a non-serious show-stopping attempt aimed at marketing only.

He believes that “the existing equation in Iraq is that what is considered corruption by the political class as spoils and rights for political participation, and the entire political process is based on the distribution of positions and the sharing of the rentier economy and its resources in Iraq,” explaining that “Al-Kazemi is unable not only to open previous corruption files, but even About reducing this corruption in the future.

Regarding the case of Hazem al-Shaalan and other political figures involved in corruption and money smuggling, the amber shows that “there is a real inability even in the pursuit of those who lift the political cover and those who do not have partisan extensions, because they may open the door to other files, in addition to that it is not possible to accept selectively striking a citizen. Corruption ”.

Ahmed Al-Suhail

Arabic Independent   LINK

Frank26 and MilitiaMan Friday PM "Anoher Exchange Rate Change" 1-8-2021

KTFA:

Samson:  New financial statement on the adjustment of the dollar exchange rate

8th January, 2021

The Ministry of Finance issued, on Friday, a new statement regarding the measures supporting the increase in the positive effects of adjusting the exchange rate of the dollar against the Iraqi dinar.

The ministry stated in a statement that Mawazine News received a copy of, that it “is fully aware that there are a number of supportive measures that need to be taken to increase the positive effects of adjusting the exchange rate. By the cabinet."

She added that she "led extensive discussions in the past weeks after the approval of the budget by the Council of Ministers regarding the follow-up to adjusting the exchange rate with many parties inside and outside the government.

These discussions will culminate next week with a proposed expanded meeting with the main economic actors from the public and private sector, where the Ministry of Finance will develop its policy program." Detailed designed to maximize the benefits from an exchange rate adjustment.

She indicated, "She hopes that these procedures will coincide with discussions within the House of Representatives on the budget, and it should be noted that the main policy measures to protect the poor and the vulnerable have been included in the budget and discussed in the minister's statement regarding the budget."  LINK

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Samson:   Iraqi Finance announces new developments in the dinar  exchange rate

8th January, 2021

The Ministry of Finance promised on Friday to make an amendment to the exchange rate of the foreign currency against the Iraqi dinar, after the decision taken by the Central Bank to reduce the value of the local currency and increase the prices of imported goods and goods in the country.

The ministry said in a statement received by Shafaq News that it is fully aware that there are a number of supportive measures that must be taken to increase the positive effects of adjusting the exchange rate. The Ministry of Finance was unable to do this publicly due to the sensitivity of the issue and because the budget must first be approved by the Council of Ministers. And she continued that she led extensive discussions in the past weeks after the budget was approved by the Council of Ministers regarding the follow-up to adjusting the exchange rate with many parties inside and outside the government.

She added that these discussions will culminate next week with a proposed expanded meeting with the main economic actors from the public and private sectors, where the Ministry of Finance will develop a detailed policy program designed to increase the benefits from adjusting the exchange rate.

In its statement, the ministry expressed its hope that these measures will coincide with discussions within the House of Representatives on the budget. The statement indicated that "the main policy measures to protect the poor and vulnerable have been included in the budget and discussed in the minister's statement regarding the budget."

The Central Bank of Iraq had decided to raise the price of selling the dollar to banks and exchange companies to 1460 dinars, from 1182 dinars to the dollar, in order to compensate for the decline in oil revenues caused by the deterioration of oil prices. Iraq relies on 90% of its income on oil revenues, and the last time it devalued the dinar was in December 2015 when it raised the selling price of the dollar to 1182 dinars, compared to 1166 dinars in the past.

The central bank launched its decision regarding the new pricing for selling the dollar in the auction for the currency on the 20th of last December, and since then, the bank has witnessed a decline in currency sales. Iraq is under great pressure under the weight of the worst economic crisis it has witnessed since 2003 until now due to the low oil prices and the outbreak of the Corona virus.    LINK

MilitiaMan:  What a find Samson! I can imagine sleepless nights are coming to many.. Those that go to bed at 9:00 may think twice about it now.. lol lol Thank you!

They say this is a new development in the dinar exchange rate. Well, fairly sure we can see that this was a part of the plan for some time and they are rolling out that plan.

They used the Devaluation on purpose, imo, knowing that there would be effects both of which served a purpose to stimulate the citizens to bring in additional 3 zero notes, citizens feeling that if they devalue again to 1660 they would lose even more purchasing power.

They knew that the citizens would get pinched, but, it was apparently a necessary evil.  One that may not have been as successful as thought. Regardless the plan was to be short lived and it appears to be the case now As, we see the Finance Minister has promised today to make an amendment to the exchange rate for positive effects and with supportive measures.

 The fact that they budget was past and they kept the data close to their chest is clearly a true sign of the sensitive nature of things. We all know the 2019 FMLA and the 2020 Budget was kept under wraps for a purpose as well. That imo is the sensitivity of the whole plan. The new International Article 8 Compliant Exchange Rate. The REER.

The HOR (house of representatives?)  is said to meet Saturday.. They say it is hoped that the meeting will coincide with the COM (Council of ministers) and the HOR in regard to the 2021 Budget with an amendment to it.

Well that imo is why they played this out this far. Because the data in the 2019 FMLA and 2020 was so sensitive in nature. The sensitivity is the mechanism in the data to go to a market economy.

They have the systems in place to do so now.

 They have the Electronic system in place. BUNA is well known to have interlinked with the region. That includes the members of the AMF. That would also include indirectly the IMF / SDR.. They communicate with each other at times.

I did see that yesterday!! It lines up that 1450 less three zeros is similar to SDR $1.450. The article a day agoy said in May 2020 the Dinar was valued at 682 Dinars to the Dollar. The real value, they said. Then they spoke of the 1182. Now We see the devaluation down to 1450 real close.. $.682 is the value of 682 Dinars once or if the three zeros are dropped. 1/1.45 is .69 real close.

See the similarities converging. Take not of the SDR is $1.45 real close.. Key thing of interest is the AMF / AAD is $420+-. That is just under 3xSDR.. 

So, It sure looks like the process was to devalue ahead of the revaluation to come as part of the plan has legs. The US Fed told us they can Devalue and Revalue and it appears to be holding true. As stated above. 

Now lets think about the green dollar and blue dollar articles over the last couple weeks. They seem to support there is a transition going on. The dollar auctions are showing scarcity to the cash sales (see above). Yesterday, case in point again, the auctions were a mere $100,000.

The green dollar and blue dollar are different not just in color. The green dollar was said to be pouring in illegally from the Kurdish region, as it was put to us. The blue dollar (different) was being used by the central bank and they were selling at 1450.. Keep that in mind.

The blue money we thought was apart of information in respect to NSCNs. In effect that may be true still to a greater degree than thought relationship wise.  As the blue dollar is to be used in the future, as it may be a digital dollar that will need to be paired with a digital Dinar where by the new small category notes come into play. They will need to have similar technology in respect to digitization and valued accordingly to an international standard article 8 compliant rate, imo.

The blue dollar that Frank asked Petra and I to consider closer, is because he believes imo that the Blue dollar is something Big that got started on or around the 1st of January, just as the well placed clip he offered us from Trump rally showed him saying Something big is about to happen!

The article yesterday speaks of a spiral if they don’t contain the spending an fill in the gaps with alternative incomes outside of oil. We all know that Iraq has been ready to clear and settle trades through the BUNA system. That system will be able to clear trades not only with Iraq but all countries affiliated with the AMF. Second mention is for purpose. 

The countries currencies would have to be able to be cleared similarly to each other. Just as the dollar will need to be or now is able to be. It has been implied the Blue Dollar is on the other side.. Meaning to me that it is coming into Iraq already, as in it is done and ready to go.

We await Iraq e-Dinar now. imo 

We saw that the 2021 budget has been side kicked back over over the last couple months to now be to the end of the rail line, Saturday. That is tomorrow.  Interestingly the Tuesday session for the Parliament was to be for Tuesday this week and it was canceled with out notice of a reason as to why and was pushed out. We can glean from the above that the sensitive nature is why! 

We have heard over the years that there may come a time where the citizens outside western eyes may get four days alone with their new sovereign money, effectively anyway. From post Tuesday four days is Saturday and the is the same day exposure of the 2021 may hit the HOR.. Let see..Much of what is in this post was written yesterday..lol

So if we keep in mind the pairing of rates, the value of the Dinar back in May 2020 was 682 and now is 1450, by dropping the 3 zeros the Dinar 1.45 is or will have converged with a competing AMF to SDR basket that can talk if you will through the BUNA platform..

3xSDR is where countries within the IMF are said to be. Samson’s post of the other day of SDR $1.45+- is suggesting there is now a convergence leading up to the HOR meeting Saturday..

I like it!! Imo ~ MM

Frank26:  1-8-21.......ANOTHER EXCHANGE RATE CHANGE

https://www.youtube.com/watch?v=KZ918ITYdfg