MilitiaMan Saturday Afternoon "Next Week Starts Tomorrow!" 2-6-2021
KTFA:
Samson: Economic: Parliament cannot change oil prices and the dollar in the 2021 budget
16:05 - 06/02/2021
An economist, Bassem Antoine, confirmed, on Saturday, that the 2021 budget is moving towards a vote, and Parliament cannot amend the exchange rates of the dollar or sell oil.
Antoine said in a statement to the "information" agency, "It is not within the powers of the House of Representatives to change and amend exchange rates and oil prices, whether the prices are high or low, as these are the exclusive powers of the government."
He added, "After the central bank approved the new exchange rates in agreement with the government, the budget numbers are not subject to amendment and cannot be challenged by Parliament."
KTFA:
Samson: Economic: Parliament cannot change oil prices and the dollar in the 2021 budget
16:05 - 06/02/2021
An economist, Bassem Antoine, confirmed, on Saturday, that the 2021 budget is moving towards a vote, and Parliament cannot amend the exchange rates of the dollar or sell oil.
Antoine said in a statement to the "information" agency, "It is not within the powers of the House of Representatives to change and amend exchange rates and oil prices, whether the prices are high or low, as these are the exclusive powers of the government."
He added, "After the central bank approved the new exchange rates in agreement with the government, the budget numbers are not subject to amendment and cannot be challenged by Parliament."
In a related context, Antoine emphasized, "The decrease or lack of central bank sales is a reflection of the changes that occurred in the exchange rates of the dollar, which pushed the merchant and the citizen to not risk and engage in new trade in light of the economic transformations of the Iraqi market." LINK
MilitiaMan: So they have it now set in stone. The Central Bank approved the new exchange rates and they are not to be challenged by the Parliament, as it is is out of their hands.
The exchange rates are not to be amended...They were told by the IMF that they would change the rate in the then current fiscal year and they did it.
They were also told by the IMF and the US FED that they could in the IMFs case change it again in early 2021 whereas, they FED just made it perfectly clear that countries can and do "Devalue and Revalue" their currencies.
So, it appears with all the talk of the 2021 Budget and the Kurds, etc., we can see that the IMF, WB, G7, UST, ITB, AMF, GCC, US State Department, etc., etc., have all had a hand in supporting the effort to get Iraq up out and into the private sector.
The last two paragraphs must be held tight to the chest until the right time to expose the real effective exchange rate to the world.
But, if the AMF has anything for us to compare to, we know they are pegged to the USD by virtue of the IMF SDR basket. We know how they express that value too. It is clear as a bell.
We are in a vey good place at this stage.. imo.. ~ MM
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Samson: Parliamentary Finance announces a deduction of 20% from the budget of the presidencies and talks about employee leave
5th February, 2021
The Finance Committee in the House of Representatives announced, on Friday, a deduction of 20% from the budget of the three presidencies in the 2021 budget, while confirming the reduction of the budget ceiling to 130 trillion dinars instead of 164 trillion
A member of the Finance Committee, Majida Al-Tamimi, said in an interview with the Iraqi News Agency, which was followed by Al-Iqtisad News, saying that "the section on the deductions that came from the government in the draft budget was canceled and compensated for by applying the Income Tax Law No. (113) of 1982. She added that "the spending ceiling has been reduced in the budget from 164 trillion dinars to 130 trillion, and other revenues have also been increased," stressing that "the budget included a lot of economic reforms
She explained that she "chaired the special subcommittee of the three presidencies in the budget and was able to deduct 20% of the budget of each presidency from the three presidencies in the budget. She pointed out that "the House of Representatives took on the role of the executive and legislative authorities at the same time in the 2021 budget," indicating that "every article in the budget has been studied 5 times and in extensive discussions
Al-Tamimi added, "The Financial Committee hosted 90 to 95 percent of the executive bodies, including the Office of Financial Supervision, and important observations in the oil sector and licensing rounds were discussed," noting that "there is a waste and big losses in this sector, some of which need to be Resolution and other parts into law
On the five-year leave for employees, Al-Tamimi confirmed, "The five-year leave has been approved for one time, meaning that the employee is not entitled to take a second leave, indicating that the five-year employee is covered by the income tax law from his nominal salary LINK
MilitiaMan: They sure have had it long enough.. Five times would make me think they needed to make sure it is perfect or they are biding their time on or for a purpose. The new phase to come to not only to Iraq but Globally is the digital phase.
The border crossings with taxes, fees, licensing, insurance, etc. will all be digitized and be able to interlink and communicate. They need to get it right. They all so may have found a way to circumvent the Oil Contracts in place with the Kurds and other countries in the region, hence, the change in direction for the way they share oil and customs revenue sharing.
Looks like it may be easier and cleaner for them the get the oil money and allow for the border monies to Baghdad while under the supervision of a special team to be in place for financial supervision. Linking them to the central bank!!! imo.. ~ MM
""the House of Representatives took on the role of the executive and legislative authorities at the same time in the 2021 budget," indicating that "every article in the budget has been studied 5 times and in extensive discussions
The committee stated that it voted to support the decentralized system in the governorates and to give powers to the governors to make decisions without the red tape and complexity of the ministries, and to support and involve the Iraqi private sector, in which more than millions of citizens work, by building investment projects and revitalizing the local market.
The Parliamentary Committee obligated the Council of Ministers to automate the procedures of tax, customs and import licenses at the border crossings, linking them to the currency sale window in the Central Bank, and obliging importing companies to take out insurance in Iraqi companies exclusively to increase state revenues.
Samson: Al-Karawi: 5 files have not been resolved yet in the budget law
2/4/2021 20:38
Member of the Parliamentary Regions Committee, MP Mudhar Al-Karawi, confirmed, on Thursday, that the 2021 budget will be decided next week.
Al-Karawi said, "The budget for 2021 was expected to take place this week, but there are 5 important files that have not been resolved so far, including the share of Kurdistan and recent commitments to Baghdad in terms of oil, border crossings and the rest of the other files in addition to the share of southern governorates and the allocations of liberated areas."
Al-Karawi added, “All expectations indicate that the next week will be decisive if new developments arise that lead to waiting, stressing that the parliament is forced to extend its legislative recess again in order to complete the budget file, which we believe will face many complications during the voting stage due to disagreements about points Multiple”.
For several weeks, the Parliamentary Finance Committee has been conducting extensive discussions about the file of the items and chapters of the 2021 budget in order to complete it and present it to the House of Representatives for a vote. LINK
Militiaman: Next Week starts tomorrow. The data below suggests they have voted on many things. Much of it suggests they are going to be going to the private sector. Automation of Customs and Taxes link via the currency window of the CBI. The final nail is coming.. eos.. imo.. ~ MM
"The committee indicated that it voted to ensure the delivery of crude oil produced in the fields of Kurdistan region to the federal government, and to increase the amounts of compensation for those affected by terrorism and covered by the decisions of the Martyrs Foundation and the Political Prisoners Foundation."
"The Parliamentary Committee obligated the Council of Ministers to automate the procedures of tax, customs and import licenses at the border crossings, linking them to the currency sale window in the Central Bank, and obliging importing companies to take out insurance in Iraqi companies exclusively to increase state revenues."
"The committee voted to include areas outside the basic design of Baghdad governorate with municipal service and allocate the necessary funds for that, and obligate the Council of Ministers to use the biometric system for employees to uncover "aliens" in all ministries and institutions. The committee stressed the cabinet's obligation to reassess and negotiate with oil licensing rounds companies and Ministry of Electricity contracts, and to cancel all customs exemptions granted to countries." Link
Papito: What is eos?
David R: I'm going to take a wild guess and say economies of scale...imo
MilitiaMan: It means in this case... end of story... imo lol ~ MM
KTFA Members "News and Views" Friday 2-5-2021
KTFA:
Samson: Deputy: He went to reduce this year's budget to 100 trillion
4th February, 2021
Bader Al-Ziyadi, the deputy of the Saeron Alliance, revealed on Thursday that there is a tendency to reduce the 2021 budget to 100 trillion.
According to the official agency, Ziyadi said, "There is a tendency to reduce the general budget for 2021 to 100 trillion, after it was reduced to 127 trillion by the Finance Committee after it was sent by the government to the size of 164 trillion."
KTFA:
Samson: Deputy: He went to reduce this year's budget to 100 trillion
4th February, 2021
Bader Al-Ziyadi, the deputy of the Saeron Alliance, revealed on Thursday that there is a tendency to reduce the 2021 budget to 100 trillion.
According to the official agency, Ziyadi said, "There is a tendency to reduce the general budget for 2021 to 100 trillion, after it was reduced to 127 trillion by the Finance Committee after it was sent by the government to the size of 164 trillion."
He added, "Reducing the total amount to 100 trillion will avoid Iraq from borrowing and debts," stressing the need to draw a fiscal policy that avoids the people's debt risks.
He explained that "the continuous rise in oil prices, reaching the $ 58 barrier, contributes to addressing the deficit." Making a "change in the budget items within the House of Representatives." LINK
OlLar: IMO i am getting the idea there is major chess playing going on. It seems as though the CBI is NOT about to divulge what rate they will use, and we know they have calculated and recalculated the rate, IMO based on what oil price is relied on and factors such as budget expenses and debt. They are forcing the Parliament to come up with a budget not based on any rate but on the other factors i.e. oil price, debt and so on, once they do so, and it is in stone, then the CBI will announce the rate based on the calculations. Does this seem plausible?
YoungSC: Frank had already stated numerous times that the budget is done imo and we keep our eyes on the CBI imo. 99% of the chit chat has come from parliament while CBI, Allawi and Keczemi remain silent. Parliament is corrupt and they prefer to cause confusion. Last week articles stated talks were positive, kurds are happy and agreements were met with the budget. Now all of a sudden this week articles brought to you by parliament have been stating kurds are not happy, disagreements and budget is still in negotiations, kurds questioning 2 paragraphs yesterday and now today Friday article states ohh its 13 questions they have. Or it states budget is 96% completed and yesterday they voted on 13 paragraphs in the budget but yet Halabousi said they are still working on the budget and it is not ready for approval yet LOL you get the drift?? This confusion alone should tell all KTFA students that parliament is full of nonsense and should not doubt Frank or WS teachings imo. ONLY pay attention to the CBI, KECZEMI and ALLAWI imo.
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Samson: Oil is jumping to its highest level in a year
5th February, 2021
On Friday, oil prices jumped to their highest levels in a year, continuing a series of strong gains due to indications of economic growth in the United States and the continued commitment of producers to curb the supply of crude
Brent crude futures rose 40 cents, or 0.7 percent, to 59.24 dollars a barrel, after recording 59.41 dollars a barrel, the highest level since February 20 last year. US West Texas Intermediate crude futures jumped 42 cents, or 0.8%, to $ 56.65 a barrel, after touching the highest level at $ 56.84, the highest level since January 22 of last year
The benchmark contract is on track to achieve weekly gains of 9%, which will be the biggest weekly gain since October
In a sign of shrinking crude oil supplies, the six-month delay in Brent and West Texas Intermediate crude futures - when the spot price is higher than the future delivery price - jumped to 13-month highs for both decades at $ 2.41 and $ 2.30 a barrel. Straight LINK
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Samson: Deputy: the budget is 96% ready
5th February, 2021
MP for the Alliance of Saeroun, Riyadh Al-Masoudi, confirmed, on Friday, that the budget is ready for printing and sending by 96%, while indicating that the political solution is no longer useful regarding the share of Kurdistan.
Riyadh Al-Masoudi said in a television interview, "The budget is 96 percent complete and is in the process of closing and printing to be sent to members of Parliament for the purpose of review."
He added that "the ongoing discussions focus on the issue of the proportion of the Kurdistan region, and consultations to add job grades for employees of contracts and education."
Al-Masoudi explained that "there are no conditions against the Kurdistan region, and the political solution is no longer effective," calling on the Kurdistan region to demand the application of the law and the constitution in order to work to restore the rights of Kurdistan employees." LINK
Samson: Baghdad is waiting for the Kurdistan Region to answer 13 questions to resolve the budget dispute
5th February, 2021
Kurdistan Parliament member, from the Kurdistan Democratic Party (KDP) bloc, Hifidar Ahmed, announced on Friday that the Finance Committee in the Iraqi Parliament had delivered the regional government delegation 13 questions, most notably the sale of crude oil, and the financial revenues generated from it with the aim of stabilizing Kurdistan’s share in the budget for the year 2021.
Ahmed said in a post today, that the Kurdistan Regional Government delegation ended its third visit to Baghdad with the aim of stabilizing the region’s share in the general budget, although he did not meet with Prime Minister Mustafa Al-Kazemi, explaining that the first visit reached an agreement with the federal government to hand over 250 A thousand barrels of crude oil per day in exchange for Baghdad granting 12.67% of the budget to Kurdistan after deducting the sovereign and governance expenditures, and this is what has been confirmed in the draft general budget law.
He noted that Baghdad recently informed the Kurdistan Region publicly that the issue of delivering (250 thousand barrels of crude oil per day to SOMO) has ended, and that the region has two options, the first of which is to deliver all of Kurdistan’s oil to Baghdad, and the second is to hand over all the financial revenues generated from selling oil.
Ahmed continued by saying that on the second visit of the provincial government delegation to Baghdad, and when it met with the Finance Committee in the Iraqi parliament, the latter posed 13 questions to the delegation and asked it to answer them, revealing 9 questions that are the most prominent, namely:
1- Does the Kurdistan Regional Government delegation have the authority to make decisions?
2-How much is the internal revenue of the Kurdistan Region?
3- What is the price that the region adopts for selling its oil?
4- The mechanism followed by the Kurdistan Region in concluding oil contracts?
5- What are the loan amounts owed by the region? Who are the bodies that granted these loans?
6- Does the Financial Supervision Bureau have a role in supervising and following up oil contracts?
7- Does Kurdistan Region have its own budget?
8- If the Kurdistan Region does not have a budget, what is the tired mechanism in spending its revenues?
9-How many employees, retirees, and those who receive salaries in general in the Kurdistan Region?
The leader of the Kurdistan Democratic Party, Hoshyar Zebari, confirmed on Thursday that the constitution does not allow the Iraqi parliament to manipulate the federal financial budget or make a change to its formulation.
Zebari said, "There must be an end to parliament, because our system is a single, independent and fully sovereign federal state. The system of government is republican, representative (parliamentary), and democratic, and this constitution is a guarantor of the unity of Iraq." He continued by saying, "The representatives cannot manipulate the budget on their own whims through their political and sectarian affiliations, and justice and the rights of all components must be fulfilled without exclusionary and racist policies if we want to build a civil and just state based on citizenship and participation and stop you playing on the strings of sectarianism and racism." Hate and exclusion."
The governments of Baghdad and Erbil reached an agreement to hand over the region's revenues of 250 thousand barrels per day and half of the other revenues from the border crossings and others, in exchange for a share estimated at 12.6 percent of the budget in addition to the payment of the salaries of the Peshmerga forces. The agreement was included in the draft budget approved by the Iraqi government and sent to Parliament for approval, but the KRG delegation returned to Baghdad again to persuade the political blocs in Parliament to pass the region’s share.
The regional government says it exports 250 thousand barrels per day of oil produced from its fields, and the remainder goes to domestic consumption, which makes it unable to meet the new demands of the Shiite blocs, which could lead to the collapse of the talks. The management of oil wealth and the distribution of its revenues are among the most prominent controversial issues that have been pending between Baghdad and Erbil for many years. Each party accuses the other of violating the constitution.
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Samson: Legal expert explains how to recover smuggled money from Iraq
10:40 - 05/02/2021
The legal expert, Ali Al-Tamimi, explained the mechanism for Iraq to recover its smuggled money abroad.
Al-Tamimi told "the information", "The best international move to retrieve the money smuggled abroad, which is estimated at 500 billion US dollars, can be recovered through the money laundering agreement for the year 2005 and signed by Iraq in 2007 with the help of these countries."
He added, “Iraq can recover its money as well according to Article 28 of the Iraqi-American Agreement of 2008, and also according to Article 50 of the United Nations Charter, which affirms the right of countries fighting organizations placed under Chapter VII of the United Nations Charter to request the assistance of the United Nations organization and Iraq was fighting ISIS terrorist subject. Under Chapter Seven under Resolution 2170 of 2014”.
And that “Iraq has an amount of 65 billion dollars in the US Federal Reserve frozen by the previous regime, and Iraq can claim it according to the above agreement for the year 2008.” LINK
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Samson: After a 10-year hiatus, the railways are transporting oil derivatives again from Baiji
4th February, 2021
Minister of Transport, Nasser Hussain Bandar Al-Shibli, announced, on Thursday, the conclusion of a contract with the Oil Products Distribution Company stipulating the transportation of petroleum products through the new specialized railway basins at a rate of 1000 cubic meters per day that can be increased according to the production capacity of the refinery from the loading baskets at the Al-Samoud station in Baiji And at a new tariff cost, not seen before by rail transport.
Al-Shibli said in a statement that Mawazine News received a copy of, that "this new contract will increase the volume of transport capacity and make the railways ranks among the winning companies," stressing "doubling efforts at all joints and taking appropriate measures to facilitate the smooth flow of the transportation of petroleum products by specialized docks." From loading sites to unloading platforms, serving the public good."
It should be noted that this new contract was signed by the Director General of Railways, Talib Jawad Kazem Al-Husseini, who had an effective role in concluding it thanks to the relentless follow-up and the earnest pursuit of making the railways among the profitable companies through the diversity of marketing outlets in agreement with government institutions as the railways are an ideal national carrier.
It is worth noting that the engineering and technical cadres in the company were able to maintain and rehabilitate 100 basins by self-efforts, in addition to importing 250 new ponds, of which 39 have reached so far. LINK
Samson: Life may get more difficult .. The economic situation is foretelling disaster in Iraq
4th February, 2021
Experts warned of the danger of the outbreak of unrest and popular protests in Iraq with the increasing rates of poverty, unemployment, the huge rise in prices and the government's inability to pay the salaries of public sector employees.
According to the site "NPR", the popular protests have rocked Iraq during the past year and a half. The largest of them was in Baghdad, but the southern city of Nasiriyah also witnessed large demonstrations and a sit-in that lasted for months, and while the strong crackdowns quelled the demonstrations, the anger was still simmering in the hearts of the people. Activists say that the increasing poverty is one of the factors that keep the protests going, including Ziad Al-Asaad, who participated in many anti-government demonstrations, stressing: "The economic situation of all people in Nasiriyah and Iraq is getting worse day by day. We will witness more demonstrations .. more. Protests in the streets, squares and squares."
For his part, political analyst Sajjad Jiyad said that "if the current situation continues, and oil prices remain low, there is a real possibility that more people will strike or protest, and things may become more difficult." Many shopkeepers in Baghdad complained about the poor conditions and the lack of buying and selling, since the value of the Iraqi dinar fell by twenty percent against the US dollar in the past world. "The rise of the dollar has devastated people," said Saad Salman, an owner of a sweets shop.
According to experts, the Iraqi economy has been suffering for a long time, but the recent period has increased its pain after the outbreak of the Corona pandemic, the decline in oil exports, and the drop in oil prices, which has formed a crisis similar to a catastrophe for a country that depends mostly on its income on exporting "black gold." The Ministry of Finance estimates that 7 million Iraqis (out of about 40 million citizens) receive government salaries or pensions. However, World Bank reports say that the number of these people decreased by 47.5 percent in the first eight months of last year. With the decline in oil revenues significantly, as the government is paying its salaries and pensions intermittently or in some sectors, and sometimes it does not pay them at all.
Economists say that the poverty rate in Iraq may have jumped from 20 percent in 2018 to 30 percent or more last year, and although the government tried to encourage people to buy local goods to provide hard currency and thus increase money in the state's treasury, this matter did not bear fruit due to the lack of goods Local or its scarcity in many areas of life and living. The owner of the sweets shop, Saad Suleiman, explained that the price of a bag of sugar increased by a third, and the price of walnuts nearly doubled. "Now, due to the high dollar and the failure to grant pensions and salaries to employees, there are two groups of people, a very poor class and a very rich class." "The situation is very bad." As for the expert at the International Energy Agency, Ali Al-Saffar, he describes the country's economic situation as very bad, explaining that despite the impact of the Corona pandemic on many countries in the region, Iraq is the most suffering and its situation "the most dangerous and prone to unrest and instability." Things in it. "
Al-Saffar pointed out that the structure of the economy in his country has been shaky for decades, explaining that Iraq depends on oil for up to 98 percent of its revenues, and almost all of it goes to the state treasury, which made the public sector grow and penetrate at the expense of the private sector and become the main resource for securing jobs and employment opportunities. For years, if not decades, economists have insisted that it is essential for Iraq to have a more diversified economy and a larger private sector, so that the livelihoods of many people are not dependent on high oil prices, but despite international development initiatives large and small, the private sector is still shrinking. In front of the state economy.
Government reform plan
Finance Minister Ali Allawi has a plan. "There has to be really a completely different approach to the way in which government funds itself and the way in which resources are allocated between different sectors." His ministry unveiled a "white paper" last year to carry out radical economic reforms such as encouraging investment by improving Iraq's infrastructure, increasing tax revenues, stimulating agriculture and manufacturing and adapting education to suit the needs of the global labor market. Allawi acknowledged that many of these ideas are not new, adding: "Most of these plans faltered because there was no will to support them." Oil money was flowing, and the government "chose the line the easiest way to deal with crises." Currently, Allawi says, there is political and popular recognition that reform is necessary and will require hundreds of concrete steps that will be enacted over a period of 3 to 5 years, the first of which is the devaluation of the currency. As for whether he was afraid of disturbances due to those measures that would be harsh in the eyes of many people, he replied: "There will be a losing class, but the beneficiaries will be many." LINK
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Don961: Report .. Iraqis resort to buying real estate after reducing the exchange rate of the dinar
Posted 7 hours ago News source / Baghdad today Baghdad Today- Follow up
A press report revealed that a large number of Iraqis are moving towards buying real estate after the government's decision to reduce the value of the Iraqi dinar, as a step to confront the economic deficit that the country suffers from
And it was stated in the report published by the Independent that the real estate market in Baghdad may be the only one that has not been affected by the economic crisis in the country since the beginning of 2020, as it witnesses movement and rise in prices, in a large number of areas of the capital, especially during the past weeks
And the indications since the lifting of Corona restrictions on Iraqi cities last (August) show a movement of demand for real estate buying and selling
The movement retreated after the decision to reduce the value of the Iraqi dinar, at the end of last year
It seems that the reduction of the Iraqi dinar exchange rate, and the citizen’s lack of confidence in the calls of government and private banks to invest money by depositing it in it and the risks of investments in other sectors, are two things that encouraged the Iraqi citizen to invest in another field that he believes is guaranteed. This trend is fueled by the fact that there are no signs of improvement in the political and economic situation in the country
According to the report, the Economic Committee in the Iraqi Council of Representatives expects that the approval of the budget will restore the confidence of the Iraqi citizen in the economy and reduce the current wide movement in the real estate market, especially in the capital
A member of the Economic Committee, Salem Al-Tufayli, says that "the high exchange rate of the dollar in the local markets has pushed citizens to tend to buy real estate as a kind of guarantee," considering that approving the budget and a number of government measures will reduce the growing demand for real estate
Tufayli notes that "there is a lack of confidence in Iraqi banks, which made many citizens who have money tend to buy real estate as a form of investment
Tufayli points to "the existence of a number of paragraphs in the budget that will work to reduce the negative effects of the economic situation in which the citizen lives, which creates a kind of reassurance for the citizen
Overpopulation, immigration and investment guarantee
The report indicates that large groups of the new wealthy who are the product of dealings with the Iraqi state institutions in recent times have gone to buy real estate in large sums in high-end neighborhoods within the capital. What, according to experts, caused the price to rise
"The blurry economic situation in Iraq has made many Iraqis tend to transfer their money in the form of assets by purchasing real estate, because they fear the future," says economist Salam Sumaisem
"The middle classes have tended to buy real estate, which led to a rise in prices as a result of increased demand," says Sumaisem
The continuation of internal migration towards the capital is another factor in the rise in real estate prices, especially since the areas of the peripheries that citizens leave suffer from service problems, unemployment and the spread of armed groups that control the elements of life in them
Economic specialist Bassem Jamil identifies the reasons for the rise in real estate prices, which are: “the population increase witnessed in the capital, Baghdad, immigration from some provinces, and the guarantee of investment in real estate
Jamil expects that "the real estate market will witness continuous activity, especially in light of the lack of value of the national currency
Of the staff loans
Ahmed al-Shammari, owner of a real estate services office in Baghdad, said, according to the report, that “for months there has been an increasing demand for real estate in Baghdad, especially in Al-Karkh,” indicating that “customers from the southern governorates, and they went to the capital because of job opportunities
Al-Shammari added, "There are state officers and employees who buy real estate at huge prices in high-end areas of Baghdad, such as Yarmouk, Al-Mansour, and Al-Harithiya in Al-Karkh and Al-Jadriya in Al-Rusafa, which led to the rise in prices
Al-Shammari indicates that there are other reasons that raised prices, including those related to loans and advances provided by government and private banks to buy real estate or to build, which helped the middle classes and formed a demand in the market
Iraqi government banks, including the Rasheed and Rafidain Banks, as well as the Iraqi Housing Fund, have launched a series of loans to citizens for housing construction over the past few days, ranging between 30 and 75 million dinars (from 20 thousand to 51 thousand dollars) to build houses ranging in size between 50 and 100 meters Square
The Central Bank of Iraq has also launched loans to build homes and buy housing units in investment complexes that are being built in the capital, with amounts ranging from 50 million Iraqi dinars to 125 million (from 34 thousand dollars to 86 thousand)
Price variation
The report notes that since 2014, the capital, Baghdad, has witnessed the construction of housing complexes containing more than 60,000 housing units, a large part of which has not been sold due to the high prices. This prompted the government to instruct banks to provide loans to those wishing to buy
According to the real estate stock exchange in Baghdad, prices vary from one region to another, depending on the assessment of its services and its location. The price per square meter in the Jadriya area in Rusafa near the Green Zone is about five thousand dollars, while the price per square meter in the Qadisiyah area, which separates the Tigris River from the first, is about $ 2,500
The prices increase the closer it is to the Yarmouk, Harithiya and Mansour areas in Al-Karkh
The price per square meter ranges in the areas south of Baghdad and west of Karkh between 800 and 1800 dollars
With the exception of the areas of Zayouna, Karrada and Palestine, where the price per square meter reaches three thousand dollars, the price per square meter in Rusafa does not exceed $ 1,200 due to the service, social and security problems it suffers from
KTFA Members "News and Views" Thursday PM 2-4-2021
KTFA:
Samson: The Association of Private Banks holds a workshop on digital transformation in Iraq
4th February, 2021
The Iraqi Private Banks Association, in cooperation with the Central Bank of Iraq, today, Thursday, held a workshop entitled (Qualification Program for Digital Transformation Leaders in Iraq), in the Kirkuk University building
The course included providing a detailed explanation on the Coursera global platform and the support provided by the Central Bank of Iraq to provide free scholarships to outstanding university students to develop their skills
The workshop witnessed a detailed explanation of the Central Bank’s initiative to support small and medium enterprises through the One Trillion Initiative, as well as community initiatives supported by the Tamkeen Fund financed by private banks
KTFA:
Samson: The Association of Private Banks holds a workshop on digital transformation in Iraq
4th February, 2021
The Iraqi Private Banks Association, in cooperation with the Central Bank of Iraq, today, Thursday, held a workshop entitled (Qualification Program for Digital Transformation Leaders in Iraq), in the Kirkuk University building
The course included providing a detailed explanation on the Coursera global platform and the support provided by the Central Bank of Iraq to provide free scholarships to outstanding university students to develop their skills
The workshop witnessed a detailed explanation of the Central Bank’s initiative to support small and medium enterprises through the One Trillion Initiative, as well as community initiatives supported by the Tamkeen Fund financed by private banks LINK
Samson: Davos summit 2021 postponed
02/03/2021 19:17:21
The Davos Summit 2021 in Singapore has been postponed to August.
The organizing country postponed the summit due to the Corona virus. LINK
ATPinfinity: The Globalist Are Forced to Cancel, World Global Economic Domination RESET, Using THEIR FAKE PLANDEMIC As Cover! HOPE THE LORD HAS THAT TRUMP CARD READY BEFORE AUGUST!
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Samson: Al-Maamouri: Smuggling has exhausted the local economy
10:15 - 02/03/2021
Member of Parliament, Burhan Al-Mamouri, said on Wednesday that the continuation of smuggling has exhausted the local economy, calling on the security forces to tighten their grip on the ports and the border strip.
Al-Mamouri said in a statement that the information received, a copy of it, that “the illegal entry and exit of goods into the country are still taking place in full swing,” indicating that “the measures taken by the Prime Minister to control the border crossings did not live up to the level of ambition.” He added, "Suspicions of corruption in the border outlets are among the largest files on which no necessary measures have been taken," calling on the Supreme Committee to Combat Corruption to "give the border file utmost importance to curb smuggling operations."
Al-Mamouri added, "The continued smuggling of goods and products, especially consumer goods, is a major reason for the local economy’s exhaustion, warning of its dangerous repercussions on the decline of the private sector and the increase in unemployment and poverty rates." Al-Mamouri stressed the need to take strict measures against smugglers and their collaborators, calling on the leadership of the joint forces and the leadership of the border guards to “close all unofficial crossings and tighten their grip on the crossings and the border strip.” LINK
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Samson: Kuwait ... Liquidity is running out
16:55 - 02/03/2021
Kuwaiti Minister of Finance, Khalifa Musaed Hamada, confirmed that Kuwait’s financial position is “strong and solid” because it is fully supported by the Future Generations Reserve Fund, but he warned of the imminent running out of liquidity in the state treasury.
Commenting on the decision of Fitch Agency to reduce the outlook for Kuwait to "negative" from "stable", Hamada said today, Wednesday, in a press release, that the state's public finances suffers from structural imbalances related to annual revenues and expenditures that "led to the near depletion of liquidity in the state treasury" represented by a fund General reserve.
The minister added that one of the top priorities of the executive authority in the coming stage is to "enhance the liquidity of the treasury, and we stress, as we previously emphasized, the need for concerted efforts by all parties and to work as one team to achieve the sustainability of public finances."
Prior to that, the "Fitch" credit rating agency said it had lowered the outlook for rating Kuwait's sovereign debt to "negative" from "stable", adding that it expected near-term liquidity risks associated with the state treasury fund.
Fitch, which confirmed Kuwait’s long-term rating at “AA”, added that the change in the outlook indicates near-term liquidity risks associated with the impending depletion of liquid assets in the General Reserve Fund in the absence of a parliamentary authorization for the government to borrow. LINK
Samson: The Arab country that bought the most gold in 2020
18:18 - 02/03/2021
The World Gold Council published a report in which it revealed the changes that occurred in the official global gold reserves in past years, and the report showed the quantities of gold that some Arab countries bought in 2020.
The report indicated that the UAE bought 23.9 tons of the precious metal during the past year, and according to the Council's data, the UAE's reserves in January reached 46.4 tons. Thus, the UAE has topped the Arab countries in buying gold in 2020, a year that witnessed a great demand for yellow resonant as a safe haven in times of crisis.
It is noteworthy that the UAE ranks 50th in the world with gold reserves, which constitute 2.7% of its total international reserves. The report also showed that Qatar bought 14.5 tons of gold last year, and its gold reserves last month reached 56.7 tons.
Qatar’s gold reserves accounted for 7.9% of the total reserves, which include foreign cash, certificates of deposit and securities. The UAE and Qatar were not the only two Arab countries that bought gold during the past world, as the data showed that Egypt bought gold by 0.7 tons, and Tunisia by 0.1 tons.
Regarding the ranking of Arab countries, in terms of gold reserves, Saudi Arabia tops the Arab countries in this index, as it owns 323.1 tons, and gold reserves constitute 3.9% of the Kingdom's total reserves. Saudi Arabia ranks 18th in the world in yellow metal reserves, ahead of countries such as Australia and Belgium. LINK
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Samson: Al-Halbousi announces the continuation of the Council's work until the budget is approved
The Speaker of Parliament, Muhammad Al-Halbousi, announced today, Thursday, that the Council will continue its work until the approval of the draft federal budget bill for the fiscal year 2021. LINK
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Samson : Al-Halbousi: Parliament's work will continue until the budget is approved
Al-Halbousi said in a statement that Mawazine News received a copy of, that "the parliament's work continues until the draft federal budget bill for the fiscal year 2021 is approved." LINK
Godlover: Many are always calling parliament "bozos"....although I agree that their ethics & morals seem to lacking, the truth is they still are needed to pass laws currently. One good thing is it appears they are continuing & not going on break until they get the budget passed. Watch the budget.........
Edna: Agreed IMO, for year's it's been said "Parliament doesn't matter", but in their present form, bet we not getting our money without them...IMO
KTFA Members "Wednesday News" 2-3-2021
.KTFA:
Samson: International Islamic" intends to launch a service for transferring funds between bank accounts
3rd February, 2021
The International Islamic Bank announced, on Wednesday, that it will soon launch a service for transferring funds from one bank account to another using a mobile phone
The bank said in a post on Facebook, followed by "Al-Eqtisad News", "Stay tuned for the launch of the service of transferring funds from one bank account to another bank account over the phone
He added that "the service is expected by merchants because of its great effect in facilitating their commercial dealings related to financial settlement
KTFA:
Samson: International Islamic" intends to launch a service for transferring funds between bank accounts
3rd February, 2021
The International Islamic Bank announced, on Wednesday, that it will soon launch a service for transferring funds from one bank account to another using a mobile phone
The bank said in a post on Facebook, followed by "Al-Eqtisad News", "Stay tuned for the launch of the service of transferring funds from one bank account to another bank account over the phone
He added that "the service is expected by merchants because of its great effect in facilitating their commercial dealings related to financial settlement LINK
Samson: The Iraqi judiciary arrests officials and oil employees
3rd February, 2021
On Wednesday, the Federal Integrity Commission announced the arrest of a number of officials and employees of the Oil Products Distribution Company in Wasit Governorate, due to suspicions of embezzlement of large quantities of gas oil, gasoline and oil.
The Investigation Department of the Commission, and in its discussion of the details of the process of implementing arrest warrants issued by the judiciary and was carried out under the supervision of law enforcement agencies in the governorate, reported in a statement received by Shafaq News, that “the staff of the Commission’s investigation office in the governorate were able to implement arrest and investigation orders issued against (13) officials. And an employee in the oil products distribution company in the province.
The department continued, “The arrest and investigation orders issued were based on the provisions of Article (316) of the Iraqi Penal Code, against the background of the lawsuit relating to the embezzlement of (361630) thousand liters of gas oil, (99750) liters of gasoline, and (73948) a Liters of oil."
It revealed that "the arrest warrants that were executed included officials and employees of the company, including managers, a number of department and division directors, current and former heads of committees, and a number of other employees, as they were directed to the competent investigating judge, who decided to sponsor them with a financial guarantee of (25) million Dinars for each of them."
The authority had announced earlier this month that it had managed to arrest (5) officials of the Kirkuk Oil Products Distribution Company. To cause them to waste (2.5) two billion dinars. LINK
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Samson: Integrity arrest an official in an Iraqi Ministry of corruption
3rd February, 2021
The Federal Integrity Commission announced on Wednesday that it had managed to arrest a general manager of one of the companies affiliated with the Ministry of Construction, Housing and Municipalities, in flagrante delicto.
The investigation department of the authority stated, in its talk about the details of the operation that was carried out according to a judicial memorandum, that a team from the Baghdad Investigation Directorate, after receiving information about an attempted bargaining and extortion, was able to arrest the general manager of a company affiliated with the Ministry of Construction, Housing and Municipalities with the flagrant offense while receiving it The amount of the bribe.
The department continued, indicating that the accused received a financial amount of (15,000,000) million Iraqi dinars in exchange for the payment of dues amounting to (75,000,000) million dinars, referring to the organization of a fundamental arrest report in the process, and it was presented with the accused and the criminal highlights to the judge of the Court of Integrity Investigation. To take appropriate legal measures, based on the provisions of Resolution 160 of 1983.
On the twenty-sixth of last January, the commission announced that officials in the Baghdad governorate were caught red-handed on charges of receiving bribes and extortion. In return for paying the dues of a company to install cameras, the amounts of which reach (20,000,000,000) one billion dinars. LINK
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Don961: 2021 budget, its money and money
2021-02-02 Dr. Nazem Al-Rubaie - economist wrote:
The Planning and Follow-up Committee of the Government Program in the House of Representatives accused the Minister of Finance, Ali Abdul Amir Allawi, and the Governor of the Central Bank, Mustafa Ghaleb, terrifying of negligence and deliberately causing damage to public money by preparing an unfair budget for the right of citizens to increase the poor and increase prices by presenting a budget with unprecedented increases in allocations Finance for all ministries and departments not associated with a ministry at the time the claim is made that the draft budget law takes into account the state of scarcity of financial resources and a significant increase in raising the exchange rate of the dollar against the Iraqi dinar, which was set in the budget at an amount of 1460 dinars per dollar instead of 1190 dinars, even if we carefully consider the draft The budget law submitted by the government to Parliament, we found that there is a great contradiction in it
While the government claims that it is an austerity budget, we see the exact opposite, as the budget amounts amounted to 123 billion dollars, which is the second highest budget in the Arab world after Saudi Arabia despite its lack of development of new projects.
And that there are institutions and departments that are not linked to a ministry that have increased their budgets because they are profitable in the first place and do not need additional funds allocated to them in the budget.
As an example of what we say, the Shiite endowment budget amounted to 829.9 billion dinars, an increase of 9 billion from the previous budget
Likewise, the Sunni endowment, whose budget amounted to 309 billion dinars, an increase of 28 billion
The Ministry of Finance was not satisfied when presenting the budget with these numbers for the Sunni and Shiite endowments. Rather, as a matter of quotas and sectarianism, a special budget for the Imam al-Kadhim College was added to the amount of 18.3 billion dinars, knowing that it belongs to the Shiite endowment
And a special budget for Imam Abu Hanifa College at an amount of 21.9 billion dinars belonging to the Sunni endowment. With a simple calculation, we see that what was allocated to the Shiite endowment only in the draft budget is 848.200 billion dinars
What was allocated to the Sunni endowment is 330.9 billion dinars
If we look at these enormous numbers, which I do not need to allocate to the fact that the two endowments have properties and many investment projects spread throughout Iraq that generate billions of dinars, in addition to the fact that the colleges of Imam
Al-Kadhim and Imam Abu Hanifa are among the originally profitable colleges and do not need money from the budget
In addition to the existence of departments, the necessity to legalize their structure has become urgent, such as the Accountability and Justice Commission, the Political Prisoners and Martyrs Foundation and the Property Claims Commission. These departments have completed their work and accomplished what is required of them and are now a burden on the budget
In addition to the fact that there are other ministries and departments that should be profitable due to the nature of their work instead of being losers at the present time, such as the ministries of transport and electricity, which is required from the House of Representatives, especially the Finance Committee, to reconsider these huge sums and transfer them and allocate them to industrial and agricultural projects
And investment for the employment of manpower and the employment of graduates who have been demonstrating for a long time to absorb unemployment
Reconsidering the exchange rate of the dollar to become 1130 instead of 1460 dinars, so that the exchange rate would rise gradually and not burden citizens with an increase in material prices.
Increase the poor poorer after the prices of the necessary materials, especially imported or locally produced, rose and the necessary ration card materials were not distributed because the worst that could face any country is ill-considered and random planning, especially on the economic and financial side as long as there is ample time to study the budget and discuss it before approving it as a budget
They are contradictory and not be like their predecessors from budgets that are a container for putting things in how they are agreed and rotating problems between the region and the government from one year to another without finding real solutions to them and that they do not contradict the laws in force with tax fighters, the retirement law and other laws because it is a one-year budget and the work ends By the end of the year, it is not a fixed law, it is not flabby, and the deficit in it exceeds 71%, that it is realistic, and that it fits with the market need and the financial capacity of the citizens. It is not a field for electoral propaganda or for local consumption, and that the percentage of the poor does not increase more than it reached, which is 32%. Reached To him now LINK
Don961: Parliamentary Finance raises notes on changing the exchange rate of the dollar against the dinar
Posted 5 hours ago News source / NR TV
The Parliamentary Finance Committee announced, on Wednesday, that suddenly changing the exchange rate of the dinar against the Iraqi dinar is not consistent with the financial situation of citizens
The reporter of the Finance Committee, Ahmed Al-Saffar, said, in a televised interview with NRT Arabia, today (February 3, 2021), that “determining and changing the exchange rate is not within the authority of Parliament, but the government, stressing that“ the Parliamentary Finance Committee hosted the Minister of Finance Ali Allawi more than Once, the man is a specialist and has experience, but they must integrate with reality in theory and practice
He added, "The first observation about the change in the exchange rate was surprising and it is assumed that it is gradual and consistent with the current financial situation of the citizens, and the second is that Iraq is not ready for such a procedure because reducing the price of the dinar against the dollar raised the price of imported goods and Iraq has no competing local product and thus it was damaged Citizens due to inflation
He explained, that the third observation is that "Iraq is not ready to change the exchange rate in order to encourage development through investment because it does not have an investment environment free from risks and corruption
He continued, "The problem with the minister is that he does not know the details of the Iraqi individual's life. If he went to the eastern gate and to the Shorja as commercial areas and visited poor areas in Baghdad, for example, he would have been informed of the reality of the people's standard of living
Regarding the budget items and comparing them to the living conditions of the citizens, the decision of the Finance Committee said, “Yesterday we received the latest report from the Minister of Planning, Khaled Battal, on poverty in Iraq, and it contains catastrophic figures. Financial and human, there are provinces in which the proportion of people living below the poverty line is above fifty percent LINK
KTFA Members "Tuesday News" 2-2-2021
.KTFA:
Samson: Deputy reveals huge numbers of money smuggled by Saddam's regime
2nd February, 2021
A member of the Economic Committee in the Iraqi Parliament, Mazen Al-Faily revealed, today, Tuesday, the amount of money smuggled out of Iraq during the era of Saddam Hussein's regime.
Al-Faili told Shafaq News, "The money smuggled by Iraq during the era of the former regime amounts to $ 500 billion, which is equivalent to the 5-year budget in the current Iraq situation."
He added, "This money is found in most of the large European banks."
KTFA:
Samson: Deputy reveals huge numbers of money smuggled by Saddam's regime
2nd February, 2021
A member of the Economic Committee in the Iraqi Parliament, Mazen Al-Faily revealed, today, Tuesday, the amount of money smuggled out of Iraq during the era of Saddam Hussein's regime.
Al-Faili told Shafaq News, "The money smuggled by Iraq during the era of the former regime amounts to $ 500 billion, which is equivalent to the 5-year budget in the current Iraq situation."
He added, "This money is found in most of the large European banks."
"Iraq needs modern legal legislation, and international experts are brought in to study how to recover this money, as the country is in dire need of it at the present time," he said. LINK
Samson: Ex-official: One billion and 200 million enter Karbala every month, and no one knows where it was spent
18:50 - 01/31/2021
A member of the dissolved Karbala Provincial Council, Nasser Al-Khazali, revealed, on Sunday, that one billion and 200 million dinars entered the governorate per month as local revenue without knowing the doors of its disbursement.
Khazali told Al-Maalouma agency that "the local administration receives one billion and 200 million dinars every month as local income from the owners of trucks carrying construction materials from quarries without knowing any supervisory authority about the doors of their disbursement."
Khazali added that "this money was spent in the past in the doors of projects and humanitarian and health cases, but today no one has revealed the doors of its disbursement."
He pointed out that, "despite the fact that the truck owners pay these large sums of money every month, the road leading to the quarries is ridiculous and unfit for wheels and has got hundreds of accidents due to its poor condition." LINK
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Samson: The International Islamic Bank announces its joining of the Bani Arab Payments platform
2nd February, 2021
The International Islamic Bank announced that it has joined the Bani Arab Payments platform, which is supervised by the Arab Monetary Fund
The bank said, on its Facebook page, seen by "Al-Eqtisad News", "The Islamic International Bank announces the completion of all operational requirements for the connection with the Bunaa Arab Payments platform, affiliated to the Regional Corporation for Arab Payments Clearing and Settlement owned by the Arab Monetary Fund
The bank added, "Bona is a platform that provides real-time clearing and settlement services for cross-border financial transfers between Arab countries and in Arab and international currencies
He noted that the most important characteristic of this platform is the competitive costs in exchange for the financial transfer, which will contribute to shortening the time and effort of the customer, noting that some of the features of the platform include financial transfer at reduced costs, and the transfer in Arab currencies such as the UAE dirham, Egyptian pound, Kuwaiti dinar, Jordanian dinar and Saudi riyal and international ones, including the US dollar and the euro. The bank confirmed that the service will be launched on the tenth of this month
On January 4, 2021, the Central Bank announced the actual launch of the adoption of the Iraqi dinar in the Buna platform for inter-Arab payments
The central bank said, "The platform works to provide real-time clearing and settlement services for cross-border financial transfers between Arab countries and in Arab and international currencies," noting that "the first movement has been implemented through banks between the UAE and the Arab Republic of Egypt, in the currency of the UAE dirham
He added, "The Central Bank of Iraq had previously signed an agreement with a number of local banks and completed the technical requirements to participate in the project in coordination with the Arab Monetary Fund," stressing that "work is underway to adopt the Iraqi dinar in the system for the next stage
He pointed out that "banks will be able to participate in Arab countries in sending and receiving payments between them in a safe and reliable manner, while this platform will help reduce recourse to international centers from correspondent banks in clearing and settling Arab payments, which will contribute to reducing the time and costs associated with banks and their customers LINK
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Don961: The World Bank: A global initiative to recover smuggled Iraqi funds explained the strategic objective of changing the exchange rate
February 1, 2021 8:00 pm Author: alzawraapaper Baghdad / Al-Zawra'a Follow-up:
The World Bank confirmed that changing the exchange rate of the Iraqi dinar against the US dollar gives the state the ability to increase its revenues and face imports from abroad. While he indicated that his financial portfolio in Iraq currently amounts to two billion dollars, he revealed a global initiative that the World Bank is working on to recover money smuggled from countries.
The Special Representative of the World Bank Mission in Iraq, Rabagdad / Al-Zawra'a Follow-up, said:
The World Bank confirmed that changing the exchange rate of the Iraqi dinar against the US dollar gives the state the ability to increase its revenues and confront imports from abroad.
While he indicated that his financial portfolio in Iraq currently amounts to two billion dollars, he revealed a global initiative that the World Bank is working on to recover money smuggled from countries.
The Special Representative of the World Bank Mission in Iraq, Ramzi Numan, said in an interview published by the Iraqi government news agency, which was seen by Al-Zawraa: “The partnership relationship between the World Bank and Iraq is very close and is based on years of joint work,” pointing out that “Iraq enjoys A very important position at the Arab and global level, and that the World Bank was next to Iraq in the various stages of stability and peace, or in the stages that it was subjected to attacks or changing economic conditions, which led to difficult repercussions on the government and people of Iraq, and the actual work began with Iraq, I believe in 2006 and 2007 through a group of projects.
He added that "the World Bank's portfolio in Iraq currently amounts to two billion dollars, and that these loans were signed about two or three years ago," noting that "the main pillar in it is a loan for the reconstruction of liberated areas, and the result of the request came after the beginning of the first phase of liberation, that is." Liberation of Salah al-Din Governorate, and then this was completed with an additional amount after liberating the rest of the governorates.
And that "this current portfolio in Iraq includes projects under implementation and projects or loans due, and that the World Bank is working to implement projects associated with them."
And on changing the exchange rate of the dollar in the Iraqi currency auction, he pointed out that "changing the exchange rate aims to give the state the ability to increase its revenues, especially since the sale of petroleum in hard currency and converting it into the reality of the Iraqi dinar gives it a financial mass that allows it to actually increase revenues and reduce the deficit." He pointed out that "changing the exchange rate may allow confronting imports from abroad because the domestic product becomes cheaper than what is imported from neighboring countries."
He explained that "the strategic objective of changing the exchange rate is to work to strengthen the local product and local industries to be able to face the external product, reinforced by measures to protect the product."
He stressed "the need to address the increase in prices and the seriousness of inflation, and focus on projects that actually allow facing the social distress of the poor."
He continued that "the idea of raising the price of the dollar is an international policy that the Ministry of Finance and the Ministry of Planning and the Iraqi government have participated in, especially the International Monetary Fund," explaining that "Iraq is now in the plight of financial deficit, it has nothing but borrowing, either internal or external," indicating that “Internal borrowing threatens the reserves of the central bank, just as using it to bridge the deficit removes the possibility of investment in productive opportunities that allow the development of the private sector, while external borrowing has its components and conditions that are based on the sustainability of the debt and the capabilities in subsequent repayment, and financial and monetary stability, and this is the financial engineering that must be looked at. In an integrated way, one can consider reducing the currency rate.
He revealed "there is a global initiative that a team from the World Bank is working on in coordination with international organizations to recover money smuggled from countries," announcing that special departments of the Ministry of Finance have been linked to the World Bank's initiative, indicating that "the World Bank is ready to provide technical support."
Mazy Numan, in an interview published by the Iraqi government news agency, and seen by Al-Zawraa: “The partnership relationship between the World Bank and Iraq is very close and is based on years of joint work,” pointing out that “Iraq enjoys a very important position at the Arab and global level, and that The World Bank was next to Iraq in various stages of stability and peace, or in the stages that it was subjected to attacks or changing economic conditions, which led to difficult repercussions on the government and people of Iraq, and actual work began with Iraq, I think, in the years 2006 and 2007 through a group of projects.
He added that "the World Bank's portfolio in Iraq currently amounts to two billion dollars, and that these loans were signed about two or three years ago," noting that "the main pillar in it is a loan for the reconstruction of liberated areas, and the result of the request came after the beginning of the first phase of liberation, that is." Liberation of Salah al-Din Governorate, and then this was completed with an additional amount after liberating the rest of the governorates.
And that "this current portfolio in Iraq includes projects under implementation and projects or loans due, and that the World Bank is working to implement projects associated with them."
And on changing the exchange rate of the dollar in the Iraqi currency auction, he pointed out that "changing the exchange rate aims to give the state the ability to increase its revenues, especially since the sale of petroleum in hard currency and converting it into the reality of the Iraqi dinar gives it a financial mass that allows it to actually increase revenues and reduce the deficit."
He pointed out that "changing the exchange rate may allow confronting imports from abroad because the domestic product becomes cheaper than what is imported from neighboring countries."
He explained that "the strategic objective of changing the exchange rate is to work to strengthen the local product and local industries to be able to face the external product, reinforced by measures to protect the product."
He stressed "the need to address the increase in prices and the seriousness of inflation, and focus on projects that actually allow facing the social distress of the poor."
He continued that "the idea of raising the price of the dollar is an international policy that the Ministry of Finance and the Ministry of Planning and the Iraqi government have participated in, especially the International Monetary Fund," explaining that "Iraq is now in the plight of financial deficit, it has nothing but borrowing, either internal or external," indicating that “Internal borrowing threatens the reserves of the central bank, just as using it to bridge the deficit removes the possibility of investment in productive opportunities that allow the development of the private sector, while external borrowing has its components and conditions that are based on the sustainability of the debt and the capabilities in subsequent repayment, and financial and monetary stability, and this is the financial engineering that must be looked at. In an integrated way, one can consider reducing the currency rate.
He revealed "there is a global initiative that a team from the World Bank is working on in coordination with international organizations to recover money smuggled from countries," announcing that special departments of the Ministry of Finance have been linked to the World Bank's initiative, indicating that "the World Bank is ready to provide technical support." link
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Samson: Oil prices are rising and expectations are to reach $ 65
2nd February, 2021
Oil prices rose nearly 1 percent on Tuesday, after major producers showed they were cutting crude production in line with their previous commitments, supporting a market that was decommissioned due to weak demand during the coronavirus pandemic
Brent crude rose 61 cents, or 1.10 percent, to $ 56.95 a barrel by 05:14 GMT, while US oil rose 62 cents, or 1.12, to $ 54.15 a barrel. Both contracts rose by more than 2% in the previous session
On the other hand, a survey showed that OPEC oil production rose for the seventh month in a row in January after the organization and its allies agreed to further ease supply restrictions, although production growth was smaller than expected
US government data last week showed a drop of 2.3 million barrels in crude stocks at the US crude futures delivery center in Cushing, Oklahoma. Analysts and dealers said that stocks are expected to record another weekly decline of the same amount
Goldman Sachs said oil prices could rise to $ 65 a barrel by July, expecting a shortfall of 900,000 barrels per day in supply in the oil market in the first half of 2021, a figure higher than its previous forecast of 500,000 barrels per day
Oil continues to face a challenging short-term demand environment amid concern that the new variants of Covid-19 will lead to more lockdowns, as vaccine launches are not going as smoothly as expected in some countries. The recent resurgence of the virus in Asia has led to a fragile recovery in transportation fuels LINK
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Samson: Representative economy: High oil prices will contribute to overcoming the deficit
2nd February, 2021
A member of the Parliamentary Economic and Investment Committee, Hamid Al-Mousawi, confirmed, on Tuesday, reducing the budget amounts to the level at which it would be possible to bridge the budget deficit, pointing out that high oil prices will contribute to overcoming the deficit.
Mousawi said in a press interview, "The House of Representatives has monitored many paragraphs in the budget that include large expenditures, and today it is working to reduce its total amount to approximately 110 trillion dinars and reduce more than 50 trillion."
He added that "the deficit is likely to range between 20-25 trillion, and this matter is compensated for through high oil prices, especially as there is a recovery in prices."
And that "some paragraphs of the budget and despite the allocation of their sums, but they will not be implemented on the ground, and therefore what is allocated to it contributes to bridging the imaginary budget deficit." LINK
More Late Night "Monday Iraq News" from KTFA Members 2-1-2021
.KTFA:
Samson: Saleh Al-Hajraf: A secure, sovereign Iraq represents a foundation for enhancing the security and stability of the region
02/01/2021 13:15:37
The President of the Republic, Barham Salih, said today, Monday, during his meeting with the Secretary-General of the Gulf Cooperation Council, Nayef Falah Al-Hajraf, that a secure and sovereign Iraq with solid relations with its Arab depth and its Islamic neighborhood is a basis for enhancing security, stability and development in the region.
The media office of the Prime Minister said in a statement that Al Furat News received a copy of it, that "the latter received the Secretary-General of the Gulf Cooperation Council, Nayef Falah Al-Hajraf, at the Peace Palace in Baghdad, and during the meeting, relations between Iraq and the Gulf Cooperation Council were discussed, and it was emphasized.
KTFA:
Samson: Saleh Al-Hajraf: A secure, sovereign Iraq represents a foundation for enhancing the security and stability of the region
02/01/2021 13:15:37
The President of the Republic, Barham Salih, said today, Monday, during his meeting with the Secretary-General of the Gulf Cooperation Council, Nayef Falah Al-Hajraf, that a secure and sovereign Iraq with solid relations with its Arab depth and its Islamic neighborhood is a basis for enhancing security, stability and development in the region.
The media office of the Prime Minister said in a statement that Al Furat News received a copy of it, that "the latter received the Secretary-General of the Gulf Cooperation Council, Nayef Falah Al-Hajraf, at the Peace Palace in Baghdad, and during the meeting, relations between Iraq and the Gulf Cooperation Council were discussed, and it was emphasized.
The importance of developing it in all fields in a way that serves the common interests of peoples and enhances opportunities for progress, construction and peace. The steps taken between Iraq and the GCC countries were also commended in signing memoranda of understanding and agreements in the field of economy and investment in order to strengthen the fraternal common relations.
The president welcomed "the success of the recent Gulf summit meeting, the signing of the Al-Ula statement and the achievement of Gulf reconciliation," noting that "this would enhance the march of the Gulf Cooperation Council and its vital role, and its positive impact on security and stability throughout the region."
Saleh added that "the challenges the region is going through, especially terrorism and the economic situation, constitute common challenges that call for coordinating efforts to address the threat of terrorism and confront economic crises by enhancing opportunities for development and economic prosperity," pointing out that "a secure, sovereign Iraq has strong relations with its Arab depth. And its Islamic neighborhood is a foundation for strengthening security, stability and development in the region.
For his part, Nayef Al-Hajraf extended his thanks and appreciation to the President of the Republic, stressing "the commitment of the Gulf Cooperation Council to support the security and safety of Iraq and its full sovereignty and its support to confront terrorism." LINK
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Samson: 13 months without salaries" .. Medical personnel demonstrate in Diyala to demand their rights
1st February, 2021
Dozens of nursing staff, dentists and pharmacists demonstrated in Diyala to demand payment of their wages that were overdue for 13 months.
Shafaq News Agency correspondent said that the health and medical personnel organized a demonstration today in front of the Diyala governorate building to demand payment of their wages in arrears for 13 months, similar to their peers in other governorates.
The protesters were quoted as saying that they have started their jobs since January 2020 and have not received any salaries yet despite the existence of an official administrative order to disbursement, and they called for resolving routine and administrative problems and releasing their salaries as soon as possible.
The demonstrators also threatened to strike permanently in the event that their demands were not met and all the problems and obstacles that caused the release of their salaries between the Ministry of Health, the governorate administration and the Diyala Health Department were not met. LINK
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Don961: Ports announces contracting with a global company to control corruption
07:09 2021/02/01 Baghdad today - Baghdad
The General Company for Ports of Iraq announced its contract with one of the international security companies to improve the aspects of combating corruption operations and to preserve the customs campus from abuse operations in an effort to raise revenues to the desired level.
It is noteworthy that Prime Minister Mustafa Al-Kazemi launched a campaign to protect the ports in Basra Governorate last year by military forces within the framework of the strategy (combating corruption at border crossings). Transcendental, and instructed to reduce complicated red tape, and to rotate staff to reduce corruption.
The director of the General Company for Iraqi Ports, Farhan Muhaisen Al-Fartousi, revealed to Al-Sabah that "a contract with a specialized international security company works to manage ports, improve the security aspect, and control any operations around which suspicions of corruption are hovering."
He stressed that "the next two months will witness the completion of security preparedness to protect the ports, and the authorities charged with this will fully practice their work." LINK
Don961: The World Bank determines the size of its financial portfolio in Iraq and unveils a global initiative to recover smuggled funds
Posted 9 hours ago Baghdad Today - Baghdad
Today, Sunday, the World Bank confirmed that changing the exchange rate gives the state the ability to increase its revenues and confront import from abroad, and while noting that its financial portfolio in Iraq currently amounts to two billion dollars, it revealed a global initiative that the World Bank is working on to recover money smuggled from countries
The Special Representative of the World Bank Mission in Iraq, Ramzi Numan, said in an interview with the Iraqi News Agency (INA), which followed it (Baghdad Today), that “the partnership relationship between the World Bank and Iraq is very close and is based on years of joint work, pointing out that“ Iraq has a position It is very important at the Arab and global level, and that the World Bank was next to Iraq in the various stages of stability and peace, or in the stages that it was subjected to attacks or changing economic conditions, which led to difficult repercussions on the Iraqi government and people, and actual work began with Iraq, I think in the two years 2006 And 2007 through a group of projects
He added that "the World Bank's portfolio in Iraq currently amounts to two billion dollars and that these loans were signed about two or three years ago," noting that "the main pillar in it is a loan to reconstruct the liberated areas and the result of the request came after the beginning of the first phase of liberation, i.e. the liberation of Salah Governorate." The debt was then supplemented with an additional amount after the liberation of the rest of the provinces
And that "this current portfolio in Iraq includes projects under implementation and projects or loans due and that the World Bank is working to implement projects associated with them."
And he indicated that "the World Bank has teams working on the issue of cultural heritage and has a simple project in Mosul that may start soon," noting that "the World Bank was at one stage looking to reconstruct Mosul, and I personally when the issue was raised I was continuing to develop a comprehensive plan for the reconstruction of the city." My view was crystallized in that a city like Mosul is a global heritage, so why does Iraq not present an ideal reconstruction project as an international competition to which the most important companies and universities will be nominated in setting a general plan for its reconstruction, even if it is in the long term
Loan size
Numan explained that “the World Bank’s loans are aimed at a large reconstruction project, accompanied by a project in the liberated areas that targets the social sector,” indicating that “the World Bank has allocated 400 million dollars for reconstruction projects, divided between two projects, the first with 150 million countries and the other with 250 million dollars. , The World Bank also has a project with the Baghdad Municipality for water and sanitation, amounting to nearly 200 million dollars, and a project in the electricity sector in Basra Governorate, with 200 million dollars
He continued, “The World Bank has a social and economic project that works on all of Iraq, and it is heading to local communities called“ The Social Fund for Development ”with a value of $ 300 million. Al-Bashir also goes to economic reform projects
He explained that "the World Bank seeks to put the project that is being proposed in a long strategic framework with a specific vision that opens up opportunities for future employment and investment spaces, pointing out that" the World Bank aspires to convert any project into a larger block and that taking advantage of this opportunity is the responsibility of the government"
exchange rate
He pointed out that "changing the exchange rate aims to give the state the ability to increase its revenues, especially since the sale of petroleum in hard currency and converting it into the reality of the Iraqi dinar gives it a financial mass that allows it to actually increase revenues and reduce the deficit," noting that "changing the exchange rate may allow import from "Because the domestic product becomes cheaper than what is imported from neighboring countries"
He explained that "the strategic goal of changing the exchange rate is to work to strengthen the local product and local industries to be able to face the external product, reinforced by measures to protect the product"
He stressed "the need to address the increase in prices and the seriousness of inflation and focus on projects that actually allow facing the social distress of the poor"
He continued that "the idea of raising the price of the dollar is an international policy that the Ministry of Finance, the Ministry of Planning, and the Iraqi government have participated in, especially the International Monetary Fund," explaining that "Iraq is now in the plight of financial deficit, it has nothing but borrowing either internally or externally," indicating that “Internal borrowing threatens the reserves of the central bank, just as using it to fill the deficit removes the possibility of investing in productive opportunities that allow the development of the private sector, while external borrowing has its components and conditions that are based on debt sustainability, subsequent repayment capabilities and financial and monetary stability.
This is a financial engineering that must be looked at in an integrated manner. Among them can be considered to reduce the currency rate LINK
KTFA Monday Night Call with Frank26 "Last of the Fab 4" 2-1-2021
.KTFA Monday Night CC 2-1-2021 with Frank26 and Team
Frank26: LAST OF THE FAB 4"
This video is in Franks and Team’s opinion
PLAYBACK IS: 605.313.5163 PIN: 156996#
What Frank’s 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
KTFA Monday Night CC 2-1-2021 with Frank26 and Team
Frank26: LAST OF THE FAB 4"
This video is in Franks and Team’s opinion
PLAYBACK IS: 605.313.5163 PIN: 156996#
What Frank’s 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=IoPugp6qCac&feature=youtu.be
MilitiaMan "News is Off The Charts Good!" Sunday 1-31-2021
.KTFA:
Parliamentary Finance expects: Approval of the 2021 budget within the next two days
Member of the Parliamentary Finance Committee, Thamer Theban, expected, on Sunday, the passage of the draft federal budget law for 2021 within the next two days, while noting that the allocations of the center and the south will be among the allocations for the development of the regions. LINK
MilitiaMan: I cannot imagine, them not passing this week for a vote. They know there is to much at stake now. There is apparently no going back now.. Way to much has been accomplished.. imo ~ MM
KTFA:
Parliamentary Finance expects: Approval of the 2021 budget within the next two days
Member of the Parliamentary Finance Committee, Thamer Theban, expected, on Sunday, the passage of the draft federal budget law for 2021 within the next two days, while noting that the allocations of the center and the south will be among the allocations for the development of the regions. LINK
MilitiaMan: I cannot imagine, them not passing this week for a vote. They know there is to much at stake now. There is apparently no going back now.. Way to much has been accomplished.. imo ~ MM
Samson: Al-Yasiri : The Central Bank's initiatives have contributed to employing the unemployed and moving stalled projects
31st January, 2021
The Director General of the Accounting Department at the Central Bank of Iraq, Ihsan Al-Yasiri, said on Sunday that the initiatives of the Central Bank of Iraq in recent years have contributed to employing the unemployed and restoring life to the stalled projects
Al-Yasiri added in an interview with "Al-Eqtisad News", that "after the economic and security crises that Iraq witnessed during the previous years, the Central Bank was involved in the comprehensive development process
He added, "The state was unable to provide financial resources during those years, but the Central Bank launched the 5 trillion dinars initiative for specialized government banks and the 1 trillion initiative for private banks. He stressed that "this initiative contributed to employing the unemployed and moving projects that have been stalled for years
He continued, "The Central Bank, with all its strategies, does not focus only on developing its human resources, but rather on developing human resources in all institutions. He pointed out that "the aim of changing the exchange rates is to support the Iraqi product in competition with imported products
He explained that "some sectors will respond immediately to this change, such as the agricultural sector, the construction sector, and the light industries sector," noting that "as a result, the central bank’s strategy to enter with wishful thinking has begun and will not end as it will remain supportive and supportive of the banking sector and other economic sectors LINK
MilititMan: I would have to agree that the response will be immediately. They change the exchange rate and the markets respond in like kind. And in a big way. Contracts will require it!!! imo.. The news is off the charts good the way they are talking today and yesterday. Comprehensive development process have been on going and we are now finally see the fruit of it all! imo ~ MM
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Samson: Advisor to the Prime Minister: Creating new electronic payment cards that will enhance the advancement of services provided to citizens
31st January 2021
The financial advisor to the Prime Minister, Dr. The appearance of Muhammad Saleh, on Sunday, that the multiplicity of electronic payment companies and the introduction of new cards in the Iraqi market is achieving competition leading to the advancement of the services provided to the citizen
In an interview followed by Al-Eqtisad News, Saleh said that the creation of new electronic payment cards will contribute to creating competition that leads to the advancement of electronic services, especially when the electronic or digital payment card carries competitive advantages, such as the discount on goods and services from the national product when used in the settlement. Payments
Saleh indicated that by doing so, it will be a tool to spread competition within the national economy, and thus the electronic payment card and its use will be very practical in paying public service bills and raising the efficiency of revenue collection, as long as there are encouraging incentives when paying with the digital card, until the digital environment is fully integrated
In addition, the International Network for Cards for Electronic Payment Services Ltd. announced the (neo) application available in the (Apple Store) or (Google Play) store, through which it is possible to create an account with an electronic wallet, without the need to visit the company's headquarters or wait for long hours, and issue a card A digital visa that you can use for all your online purchases, or visit an authorized dealer to buy a gift card or request a travel card
The managing director of the company, Zaid Fawzi, affirmed that "our vision is that money must become digital and all citizens are dealt with electronic payment, especially under the circumstances of the Corona pandemic and after it, as we continue to provide the most secure, quality and easy visa cards for the Iraqi citizen, which meet all his needs with various different needs The methods of use in terms of the various features of our products
Fawzi indicated that the registration process in the application is according to the instructions of the Central Bank, and through the smart application, you can follow all your financial movements easily and safely. He pointed out that "the application provides an electronic wallet with a financial ceiling of up to 50 thousand dollars annually, and the citizen can easily charge it by visiting agents spread throughout Iraq, and create your digital card directly from the application and use it by purchasing from websites that support visa payment, promotion on social media sites and with the recharge feature." When needed, as soon as there is an amount of money in your electronic wallet
The plastic gift card product is distinguished by its availability at agents and in various categories, once you buy it closed from the agent, you can activate it in seconds in the application and directly use it online, ATMs and POS points of sale in three ways ((Chip- Swipe-Contactless) locally and internationally, and it is not refillable
As for the "plastic" travel card, any citizen can request it by visiting any authorized agent and receive it within an ideal period of time not exceeding two days as a maximum, with a financial ceiling of $ 10,000 and can be recharged immediately from the wallet. It is used with POS devices in three ways ((Chip- Swipe-Contactless and Automated Teller Machine (ATM) locally and internationally
It is noteworthy that the company, the International Network of Cards for electronic payment services, started work in 2019 with a license to do electronic payment work No. (7) from the Central Bank of Iraq and based on Law No. (56) of (2004) and it works with a cadre Iraqi youth is proud to provide the best services in the field of electronic payment to citizens. LINK
MilitiaMan: DIGITAL MONEY !!! I seriously like to hear this. They told us about this.. It is and was part of the plan of a level playing field. Get ready to be cashless than before. They told us there would be a smaller amount of currency in circulation. Well when they adjsut the exchange rate accordingly they will need less cash. As it will be worth more.. lol ~ imo ~ MM
Samson: Sairoun: Raising Or Lowering The Exchange Rate Of The Currency Is The Exclusive Authority Of The Government
31st January, 2021
Member of Parliament for the Saeron Alliance, Riad Al-Masoudi, affirmed that "raising or lowering the currency exchange rate is the exclusive authority of the government in accordance with the law and the constitution."
Al-Masoudi said in a press statement by the Independent: “Articles 78 and 80 are clear about the government's authority to manage the country, economic planning and financial policy, which are all exclusive to the executive authority.” He added, "The raising or lowering of the currency rate is an exclusive prerogative and part of the government's measures to reform the economy."
Al-Masoudi explained: “The role of the House of Representatives is legislative, supervisory, and representative exclusively in accordance with Article 68 and its constitutional paragraphs.” He pointed out: “The parliament’s role is in relation to collecting signatures, either issuing representative orders to form committees or issuing decisions on a specific issue, which are not binding and give the representative opinion of Parliament.”
It is noteworthy that the parliamentary signatures exceeded 100 signatures requesting the government to reconsider reducing the price of the local currency against foreign currencies. LINK
MilitiaMan: The reducing the price of the local currency is not going to happen again. 1182 Didn't work 1190 didn't work nor will 1460 if left with out deleting the zeros from the exchange rate. imo ~ MM
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Samson: Ammar Al-Hakim Discusses With The Ambassadors Of South Korea And Japan Political Developments Regionally And Internationally LINK
MilitiaMan: Like I said, look at all who are lining up for the private sector. Internationalism all day long now coming in.. Perfect and timed for the end game.. imo. ~ MM
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Samson: A senior Gulf official visits Iraq LINK
MilitiaMan: Man the line up is amazing to watch of late. They are all ready and willing to support the reforms out of Iraq. What I see from the amount of entities, showing up is showing us regional and international acceptance and effectively reconciliation!~ imo ~ MM
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Samson: Kuwait postpones debts on Iraq to next year LINK
MilitiaMan: More support that there is a regional reconciliation going on. Perfect timing. Suppor them while knowing that the 30 billion in wings to reconstruct the country is to pay off by far more than the 2.5 billion still owed.. Wow! imo ~ MM
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Samson: Deputy: the governor of the central bank outside the questioning and the budget within the bargaining
15:38 - 01/31/2021
The coalition of Iraqis confirmed, on Sunday, that the coming sessions will not witness the questioning of the Governor of the Central Bank of Iraq, attributing the matter to Parliament's preoccupation with the budget and through it to enter the line of negotiations and bargaining between the blocs.
The deputy of the coalition, Jasim Mohan, said to / the information / that "breaking the quorum and postponing the session during the interrogation of the governor of the Central Bank was not a coincidence and here is the coldness of dealing with the questioning by the Presidency."
He added that "the coming sessions will not witness the questioning of the governor," noting that "the budget will enter the line and the parliament will be busy with it and its long struggles."
Mohan said, "Through the differences on the points of balance between the blocs, the subject of the governor will enter and the agreements and deals on them will begin with a file in exchange for a file."
MilitiaMan: I'll bet that the budget will enter the line in parliament.. It will be busy with the exchange rate and how to allocate the money.. lol imo Why question CBI Governor about the 1460 devaluation when it can easily become in line with the dollar peg ($1.46) once they drop 3 zeros and the expression may be used as in the SDR basket like that similar to the AMF, etc.... imo ~ MM
Samson: Tomorrow ... a new Kurdish delegation will visit Baghdad in a last attempt before the budget is passed
14:15 - 01/30/2021
MP for the Patriotic Union of Kurdistan, Taha Amin, confirmed on Saturday that the Kurdistan Regional Government delegation will return to the capital, Baghdad, tomorrow, Sunday.
Amin said in a statement to Al-Maalouma, that “a Kurdish delegation headed by the Deputy Prime Minister of the Kurdistan Regional Government, Qubad Talabani, and the membership of both the Finance Ministers, Awat Sheikh Janab, and Planning Dara Rashid and the region, Khaled Shawani, and other officials will visit Baghdad tomorrow, Sunday, in a final round before presenting the budget to Voting in Parliament”.
He added that "the visit aims to stabilize the region's share in the budget and to agree on mechanisms to deliver the agreed quantity of oil, which is 250 thousand barrels of oil, and will it be delivered in cash or a quantity to SOMO."
Amin pointed out that "we hope that there will be a response to the last visit, because the one who is most affected by the failure to reach an agreement will be the Kurdish people." LINK
MilitiaMan: This is a very timely meeting we are witnessing beginning again a new. Mechanisms to deliver Cash or Quantity are on the table.. The Kurds have their people in mind, coming home with out the spoils will not look good. This is not the only timely visit we are going to see and or have been seeing by very large entities.. imo ~ MM
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Samson: Erbil enters "last-minute" negotiations with Baghdad on the budget
12:46 - 01/31/2021
Member of the Parliamentary Finance Committee, Jamal Cougar, confirmed, on Sunday, that the Vice President of the Kurdistan Regional Government, Qubad Talabani, will arrive in the capital, Baghdad, today at noon, to conduct a final round of negotiations with Baghdad on the budget, indicating that in the event that no agreement is reached, the deputies of the region will boycott the session Vote.
Cougar said in a statement to "the information", that "the vice president of the Kurdistan region, Qubad Talabani, will arrive this afternoon in Baghdad to enter into further negotiations with Baghdad in order to reach a solution that satisfies both parties." He added that "the negotiations that Talabani will conduct are the last round, and in the event that no agreement is reached, the deputies of the region will boycott the voting session and the crisis between Baghdad and the region will remain."
It is noteworthy that the region agreed to deliver 250 thousand barrels of Kurdistan’s oil to the government set forth in Articles 11 and 10 of the budget and related to the region’s share, but Baghdad will not respond and insist that the region hand over all of its oil and half of its other revenues. LINK
MilitiaMan: I suspect this final round is about to be game over.. Don't forget they front ran Baghdad in respect to Taxation. They were not against it. Why? We know why.. They know what we all know.. Exchange rate is going to change in early 2021 again. Private Sector will require it. Article 8 compliance will require it. The WTO will require it, the list goes on.. imo. ~ MM
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Samson: The Sairon Alliance stresses the need for a "Kurdish conviction" to pass the 2021 budget
30th January, 2021
The Saeron Alliance, supported by the leader of the Sadrist movement, Muqtada al-Sadr, suspended today, Saturday, the fact that there is a parliamentary and political approach to pass the 2021 budget bill without the approval of the Kurdish political forces.
The leader in the coalition, MP Riad Al-Masoudi, told Shafaq News, "The current indications are that the 2021 budget bill will be passed with the approval and support of the Kurdish political forces," stressing the need for a Kurdish conviction about what was mentioned in the budget, and they are aware of the need to vote on the budget in a manner Fast, and they don't want to delay it.
Al-Masoudi indicated that "all political forces, including the Kurdish, will engage in decisive meetings during the next two days in order to finally agree on passing the budget during the current week, after the financial committee has fully completed the project, and it has not remained until consensus and political agreement on it." LINK
MilitiaMan: Even Sadr is in support of the Kurds getting this done fast. Me too. lol imo Again the Kurds have the people in mind. ~ MM
Samson: The Finance Committee reveals the date for the completion of the 2021 budget
30th January, 2021
A member of the Parliamentary Finance Committee, Jamal Cougar, expected, on Saturday, to complete the 2021 budget project in the middle of this week, and then put it to a vote in the House of Representatives
Cougar said in a special statement to NRT Arabia, today (January 30, 2021), that "the Finance Committee has so far reached Article 37 of the 2021 Budget Bill, and it will be fully completed on Tuesday and presented to the political forces to take final opinions
Cougar expected the project to be put to a vote before the House of Representatives at the end of this week or during the next week
Regarding the paragraph on employee salary deductions, a member of the Finance Committee pointed out that "the government deductions are completely rejected and two proposals were put forward in place of it. The first is the application of Income Tax Law No. 113 on all employees and salaried persons and includes the total salary, and another proposal to apply this law with the exception of minimum or fragile salaries," Deductions used to start from the salary of an employee who receives more than a million dinars a month LINK
MilitiaMan: End of this week was yesterday 01/30/2021, early next week starts today 01/31/2021.. imo.. ~ MM
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Samson: A member of Parliamentary Finance confirms that discussion of about 40 articles of the draft budget law has ended
31st January, 2021
A member of the Parliamentary Finance Committee, Representative Shirwan Mirza, confirmed, on Sunday, that the committee has finished discussing about 40 articles of the draft budget law
Mirza said in a press interview, that the committee will discuss during today's meeting, amending the articles and paragraphs of the budget bill and preparing them for voting by the House of Representatives, indicating that the Finance Committee has finished discussing about 40 articles of the draft law
He noted that the draft budget law will be ready for a vote in the House of Representatives during the current week LINK
MilitiaMan: They sure like to keep us on our toes.. lol During the current week started today.. lol imo ~ MM
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Don961: New text in the draft federal budget in Iraq to establish a special petrodollar fund
January 31, 2021 12:45 AM
Mubasher: The Financial Committee in the Iraqi Parliament announced today, Saturday, the addition of a new text in the draft federal budget law for 2021.
The Media Department of the House of Representatives stated in a statement carried by the Iraqi News Agency (INA), that "the Finance Committee added a text in the draft Federal Budget Law for 2021, which includes the establishment of a special petrodollar fund for oil and gas producing provinces to implement projects and provide services."
Today, Saturday, Parliament Speaker Muhammad al-Halbousi chaired a meeting of the Parliamentary Finance Committee, to discuss the draft federal budget bill for the fiscal year 2021. LINK
MilitiaMan: Interesting they have a Petro Dollar text in the BL for 2021. I'll bet it has to do with the likes of Hughes Baker, etc.. They know the money is about to flow from investment and will need to have the mechanism in place to extract their share of profits.. Right fully so. Once again in favor of the people too. imo !~ MM
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Don961: Al-Jubouri to the World Bank Mission: Many reform measures were included in the budget
Posted 8 hours agoNews source / Mawazine News
12:03 - 01/31/2021
Baghdad - Mawazine News,
Chairman of the Parliamentary Finance Committee, Haitham Al-Jubouri, discussed with the representative of the World Bank delegation in Iraq, Ramzi Numan, the draft budget bill for 2021.
A statement stated, “Chairman of the Finance Committee, MP Haitham Al-Jubouri, received the representative of the World Bank mission in Iraq, Ramzi Numan Draft Federal Budget Law for 2021 ”.
He added, “The meeting discussed the great challenges facing the Finance Committee, during its discussions of the draft budget in light of an unstable economic and financial situation, whether in Iraq or the world, imposed by the Corona pandemic.
Al-Jubouri stressed, according to the statement, that “the Finance Committee had a major challenge in the budget represented in the huge deficit and tremendous growth in expenditures without actual reform measures,” indicating that “the committee included a lot of reform measures and rearranging the budget formulation with an economic outlook that reduces pressure on Oil revenues by supporting non-oil resources such as border crossings, collection and private sector support to stimulate the Iraqi economy.
For his part, Numan said: “The World Bank supports the reform process to revive the Iraqi economy and solve its structural problems,” stressing at the same time that the bank had restored to support investment and development projects in Iraq.
In another context, Speaker of Parliament Muhammad al-Halbousi chaired the thirty-fifth meeting of the Parliamentary Finance Committee, in which it continued its discussions on the draft federal budget bill for 2021.
A statement by the Media Department in the House of Representatives stated that the Speaker appreciated the efforts of the Finance Committee in its discussions to balance the current year and bear the burdens of the confusing financial and economic situation in the country.
He added, "Al-Halbousi presented a set of proposals and ideas that could be included in the draft law that would contribute to the development of the agricultural sector, such as obligating the government to pay farmers' dues and supporting this important segment in the country, and supporting the industrial sector and the private sector to create opportunities for unemployed youth."
The statement indicated that "the Finance Committee included a text in the budget that includes the establishment of a special fund for petrodollars for the provinces producing oil and gas to implement important projects and provide services at the level of all sectors."
He continued, "The meeting discussed supporting the liberated governorates and providing adequate allocations to the fund for their reconstruction, as well as the need to support the stabilization program to enable the displaced to return to their homes voluntarily." Ended 29 / A 87 LINK
MilitiaMan: So the World Bank has restored their support for investment development projects. Well aint that special.. They are not the only ones either, as we will see I am sure throughout this thread. lol imo ~ MM
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Samson: Monetary Policy and Fiscal Policy: An Overview LINK
MilitiaMan: Talking Monetary Policy and Fiscal Policy in respect to the CBI and the UST.. Like I said earlier, there are more than just the Kurds in the news and the 2021 Budget.. They are clearly telling us they are pegging to the Dollar, like was said when they devalued to 1460. The IMF above is mentioned that the USD is a Fundamental Pillar. They also mention that the CBI is the one that manages and issues the currency. Talks about the management ove money in circulation.. Nice!! They even mention that they have respectable reserves. Which supports them heading into the new market economy and or private sector. This is again timely and shows there are more involved and intertwined. All very good!... ~ Imo. ~ MM
Post #40 has this too. ~ MM
" human resources, but rather on developing human resources in all institutions. He pointed out that "the aim of changing the exchange rates is to support the Iraqi product in competition with imported products" "
He explained that "some sectors will respond immediately to this change, such as the agricultural sector, the construction sector, and the light industries sector," noting that "as a result, the central bank’s strategy to enter with wishful thinking has begun and will not end as it will remain supportive and supportive of the banking sector and other economic sectors
KTFA Members "News and Views" Sunday 1-31-2021
.KTFA:
Samson: Sairoun: Raising Or Lowering The Exchange Rate Of The Currency Is The Exclusive Authority Of The Government
31st January, 2021
Al-Masoudi said in a press statement by the Independent: “Articles 78 and 80 are clear about the government's authority to manage the country, economic planning and financial policy, which are all exclusive to the executive authority.” He added, "The raising or lowering of the currency rate is an exclusive prerogative and part of the government's measures to reform the economy." LINK
DeepWoodz: Imo...This should make you smile and it’s at least the third article I’ve seen saying this. It’s up to Kadhimi.
KTFA:
Samson: Sairoun: Raising Or Lowering The Exchange Rate Of The Currency Is The Exclusive Authority Of The Government
31st January, 2021
Al-Masoudi said in a press statement by the Independent: “Articles 78 and 80 are clear about the government's authority to manage the country, economic planning and financial policy, which are all exclusive to the executive authority.” He added, "The raising or lowering of the currency rate is an exclusive prerogative and part of the government's measures to reform the economy." LINK
DeepWoodz: Imo...This should make you smile and it’s at least the third article I’ve seen saying this. It’s up to Kadhimi.
Samson: Kuwait postpones debts on Iraq to next year
31st January, 2021
The State of Kuwait promised to postpone the debts owed by Iraq to next year.
The head of the Finance Committee, Haitham Al-Jubouri, said, "The Kuwaiti side promised to postpone the debts on Iraq until next year.
A parliamentary delegation had paid an official visit earlier to the State of Kuwait. LINK
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Don961: New text in the draft federal budget in Iraq to establish a special petrodollar fund
January 31, 2021 12:45 AM
Mubasher: The Financial Committee in the Iraqi Parliament announced today, Saturday, the addition of a new text in the draft federal budget law for 2021.
The Media Department of the House of Representatives stated in a statement carried by the Iraqi News Agency (INA), that "the Finance Committee added a text in the draft Federal Budget Law for 2021, which includes the establishment of a special petrodollar fund for oil and gas producing provinces to implement projects and provide services."
Today, Saturday, Parliament Speaker Muhammad al-Halbousi chaired a meeting of the Parliamentary Finance Committee, to discuss the draft federal budget bill for the fiscal year 2021. LINK
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Samson: Monetary Policy and Fiscal Policy: An Overview
31st January, 2021 by Dr. Muhannad Talib Al-Hamdi
Monetary policy and fiscal policy are the two tools that are most widely used to influence a nation's economic activity. Monetary policy is primarily concerned with managing interest rates and the total supply of money in circulation and is generally implemented by central banks, such as the Central Bank of Iraq and the US Federal Reserve Bank. Fiscal policy is a general term for tax measures (and management of government resources) and government spending. In Iraq, the country's fiscal policy is determined by the government (the executive branch) and the House of Representatives (the legislative branch). In this article, we will talk about monetary policy and leave the next article about monetary policy
Monetary policy
Monetary policy is the process of formulating, announcing and implementing a plan of actions taken by the central bank, currency board, or any specialized monetary authority that controls the amount of money in the economy and the channels through which new money is obtained in a country. Central banks usually use monetary policy to either stimulate the economy or dampen its growth. By incentivizing individuals and firms to borrow and spend, monetary policy aims to stimulate economic activity. On the contrary, by restricting spending and stimulating savings, monetary policy can act as a brake on inflation and other issues associated with an overheating economy
Monetary policy is the most blunt instrument in terms of expanding and contracting the money supply to affect inflation and growth and has less of an impact on the real economy. For example, the Fed was negative during the Great Depression. His actions prevented a complete economic collapse but did not generate significant economic growth to reflect lost output and lost jobs . An expansionary monetary policy can have limited effects on growth by increasing asset prices and lowering borrowing costs, making companies more profitable
Monetary policy relates to the demand side of economic policy, and it refers to the measures taken by a country's central bank to control the money supply and achieve macroeconomic goals that promote sustainable economic growth. This is achieved through measures such as adjusting the interest rate, buying or selling government bonds, regulating foreign exchange rates, and changing the amount of money that banks have to keep as reserves
Economists, analysts, investors, financial experts and politicians around the world are eagerly awaiting monetary policy reports and results of meetings in which monetary policy decision makers participate. Such developments have a long-term impact on the overall economy, as well as on specific industrial sectors or markets
Monetary policy is formulated on the basis of inputs gathered from a variety of sources. For example, the monetary authority may consider macroeconomic figures such as GDP and inflation, growth rates for different industry sectors and the numbers associated with them, as well as geopolitical developments in international markets, including oil embargoes, tariffs, or trade wars. Monetary policy-making entities may also consider concerns raised by certain groups such as those representing different industries and companies, survey results by well-known institutions, information from government and other reliable sources
Monetary policy requirements
Typically, monetary authorities are given political mandates to achieve a steady rise in GDP, keep unemployment rates low, and keep foreign exchange rates and inflation rates within a predictable range . Simply put, the central bank has a responsibility to balance economic growth and inflation. In addition, the population aims the cash to keep the prices of Aceh long - term interest rates are relatively low. The role of the central bank is to be the lender of last resort to commercial banks when they are undergoing a liquidity crisis to prevent financial institutions from failing and spreading financial panic, to provide commercial banks with liquidity, and to be responsible for regulatory auditing of institutions in the financial services sector
In general, monetary policies can be classified as either
Expansive monetary policy:
If a country is facing a high unemployment rate during a period of economic slowdown or recession, the monetary authority can choose an expansionary monetary policy aimed at increasing economic growth and expanding economic activity. As part of the expansionary monetary policy, the monetary authority often cuts interest rates to boost spending and make money relatively favorable
Central banks are using expansionary monetary policy to reduce unemployment and avoid recession. This expansionary policy increases cash by giving banks more money through borrowing. As a result, banks lower interest rates, making loans cheaper. Firms are borrowing more to purchase equipment, hire employees, and expand their operations. People borrow more to buy more homes, cars, appliances, and more. All of this increases demand and stimulates economic growth. An example of this expansionary approach is the low to zero interest rates that many leading economies around the world have maintained since the 2008 financial crisis
Contractionary monetary policy
An increase in the money supply can lead to higher inflation, raising the cost of living and the cost of doing business. Contractionary monetary policy, by increasing interest rates and slowing the growth of the money supply, aims to reduce inflation. This can slow economic growth and increase unemployment, but it is often necessary to cool down the economy and keep it under control. Central banks use deflationary monetary policy to reduce inflation as it reduces the money supply by restricting the amount of money that banks can lend. Banks charge a higher interest rate, which makes loans more expensive. Businesses and individuals borrow less, which slows down growth
In the early 1980s, when inflation reached record levels in the United States, reaching nearly 15%, prompting US President Gerald Ford to call inflation "the people's first enemy", the Fed raised the benchmark interest rate to 20%. Although high interest rates led to an economic recession, the bank was able to return inflation to the desired range of 3% to 4% within the few years after that
Monetary policy objectives
Central banks have three goals by exercising monetary policy. The most important one is managing inflation. The secondary goal is to reduce unemployment, but only after controlling inflation. The third goal is to promote moderate long-term interest rates
Monetary policy implementation tools
Central banks use a number of tools to shape and implement monetary policy
The first is to buy and sell short and long-term government bonds in the open market using the financial reserves they have. These operations are called open market operations. Open market operations have traditionally aimed to achieve moderate short-term interest rates by adding or withdrawing funds in the market. The central bank adds funds to the banking system by purchasing financial assets (government bonds) or withdrawing them by selling assets, and commercial banks respond to this by lending money more easily at lower interest rates, or more difficultly with higher interest rates, until the achievement of The target of the interest rate that the central bank is aiming for. Open market operations can also target specific increases in the money supply to get banks to lend money more easily by purchasing a specified amount of assets, in a process known as quantitative easing
The second option used by the monetary authorities is to change the interest rates that the central bank imposes on commercial banks in order to obtain loans from the monetary authority or the so-called discount rate. With this role, the monetary authority plays its important role as a lender of last resort when commercial banks seek emergency direct loans to cover their operations. The imposition of higher interest rates, an example of deflationary monetary policy, means that commercial banks must be more cautious about their lending operations or the risk of failure. On the contrary, lending to commercial banks at lower rates will enable them to offer loans at lower rates of interest and work with lower reserves. By raising the price Debit, the monetary authority tries to dissuade commercial banks from borrowing. This measure reduces liquidity and slows the growth of the economy. Conversely, by reducing the discount rate, the monetary authority encourages commercial banks to borrow, and this increases cash liquidity and promotes growth
The third tool is the mandatory legal reserve requirement. The monetary authority, through a law enacted by the legislative authority in the country, orders the commercial banks to the proportion of the money they must keep from the deposits made by the clients of the banks in order to ensure their ability to fulfill their obligations. The monetary authority checks that matter every day at the end of the working day. Banks that do not achieve this percentage are subject to heavy penalties, amounting to closure and liquidation. It is known that the depositors do not need all of their deposited money every day, so it is better for commercial banks to lend to individuals and companies everything that is above this obligatory percentage. In this way, commercial banks will have enough cash on hand to fulfill most of customers' daily demands. When the monetary authority wants to restrict liquidity, it raises the mandatory statutory reserve ratio, thus giving banks less money to lend. And when it wants to expand liquidity, it reduces the reserve requirement, giving commercial banks more money to lend. Central banks rarely change the statutory reserve ratio because that requires a lot of political action and legislation and makes the cost of doing business higher
Finally, in addition to directly influencing the money supply and the bank lending environment, central banks have a powerful tool in their ability to shape market expectations through their public announcements about future central bank policies. The monetary authority’s data and policy announcements move the markets, and investors who guess correctly what central banks will do can make big profits. However, the monetary authority’s policy announcements are effective only within the limits of the credibility of the authority responsible for formulating, announcing and implementing the necessary measures. In an ideal world, monetary authorities should operate completely independently of government influence, political pressure, or any other powers to make their policies. If the central bank announces a certain policy to place restrictions on increasing inflation, then inflation may continue to rise if the general public has little or no confidence in the monetary authority. When making investment decisions based on the monetary authority's stated policies, one must also consider its credibility
In reality, however, governments around the world may have different levels of interference in the work of the monetary authority. This could be done by the government, judiciary, or political parties, whose role should be limited to appointing key members of the monetary authority’s board of directors only. Alternatively, the influence of these actors could extend to forcing members of the Monetary Authority to announce populist measures, for example, to affect the economy when elections approach
Iraqi Monetary Authority
The Iraqi National Bank was established in 1947 with a capital of five million Iraqi dinars and was the nucleus of the Central Bank of Iraq established under Law No. 72 of 1956. The Central Bank of Iraq was reconfigured on March 6, 2004, as an independent monetary authority for the country. Its formation was necessary due to the events that led to the US invasion of Iraq and its consequences, as well as the downfall of the former regime. The bank was established with a capital of 100 billion dinars provided by the state in exchange for 100% of the bank’s capital, meaning that the federal government is the sole owner of these non-transferable shares. The first governor of the Central Bank of Iraq after the regime change was the well-known economist Dr. Sinan Al-Shabibi, and Mr. Mustafa Ghaleb was finally appointed as governor of the Central Bank by Prime Minister Mustafa Al-Kazemi in September 2020
The bank manages domestic monetary policy and oversees the country's financial system. It is headquartered in Baghdad and has four branches in Basra, Mosul, Sulaymaniyah, and Erbil . The new Law No. 56 of 2004 granted the Central Bank independence as it should not receive instructions from the government
In the past five decades, monetary policy has been constrained by two factors, the rentier nature of the Iraqi economy
The effect of fiscal policy, and thus the money supply was linked to government expenditures, but coordination between monetary and fiscal policy remained weak. In 1964, the Iraqi authorities reduced the role of the private sector, commercial, industrial, and banking services, through nationalizations that included commercial banks. Until the 1980s, commercial banking transactions were concentrated in a single state bank, the Rafidain Bank. Later on, another state bank, Rasheed Bank, was established. And in 1991 it was granted licenses for the establishment of private banks
The main objectives of the Central Bank of Iraq are to ensure domestic price stability and to develop a stable and competitive financial system based on a market economy, which is a system consisting of commercial banks, financial companies, stock exchanges and insurance companies. To achieve these goals, the CBI aims to support sustainable growth and employment in the country
In order for the Iraqi banking sector to perform its functions, the Central Bank of Iraq undertakes the following tasks
Implementation of the exchange rate policy. The Central Bank of Iraq manages the exchange rate policy of the Iraqi dinar, which is pegged to the US dollar. The International Monetary Fund describes the peg to the dollar as a fundamental pillar of the economy, which has led to the persistence of low and stable inflation in Iraq, with an average of about 2% for several years
Managing Iraq's gold and foreign exchange reserves. The Central Bank of Iraq has built a respectable level of reserves of $ 54 billion by September 2020
Issuing and managing the Iraqi national currency, the Iraqi dinar, as a new currency was put into circulation at the end of 2003
Supervising the payment system, organizing and supervising the banking sector
Liberalizing the financial sector, especially the interest rate
6. Allowing foreign banks to operate in Iraq
7. Reschedule the local debts owed by the Ministry of Finance
The Central Bank of Iraq used the following rules to manage monetary policy to generate stability in the financial market
1 . Control of liquidity in two ways: primary and secondary lending and acting as lending of last resort
2. The compulsory legal reserve ratio: 25% for private sector deposits and 75% for the government sector since July 2007, but it was modified after that
3 . Auditing of excess bank reserves to monitor and control liquidity
4 . Buying and selling treasury bills for a period of 91 days, 63 days and 28 days
5. Management of lending between commercial banks
The Central Bank of Iraq faces a number of challenges, including managing monetary policy. One of the main issues of concern stems from the insurgency by ISIS gangs in parts of the country that are believed to be responsible for a number of severe financial turmoil. The Central Bank of Iraq says ISIS looted nearly $ 800 million worth of the country's banks between 2014 and 2017, most of which was denominated in Iraqi dinars
Another major issue for the central bank stems from fluctuations in oil prices. Oil exports are the main source of foreign currency for Iraq, and thus the most important for the country's economy. According to the Organization of the Petroleum Exporting Countries (OPEC), Iraq's crude oil exports reached nearly 4 million barrels per day in 2019. The decline in oil prices was the driving force behind the decline in Iraq's foreign reserves, from $ 54 billion at the end of 2015 to 45 A billion dollars at the end of 2016. Global oil prices collapsed in early 2020, amid a global economic slowdown due to the Coronavirus pandemic , putting economic and social conditions in the war-torn country under severe pressure. Total Iraqi oil revenues nearly halved, from $ 5.05 billion in February 2020 to $ 2.99 billion in March of the same year LINK
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Samson: Amid tight security ... Massive demonstrations sweeping central Baghdad
31st January, 2021
Hundreds of postgraduate degree holders and graduates from other majors demonstrated on Sunday in front of an Iraqi government office in Al-Alawi district in central Baghdad.
The Shafaq News Agency correspondent said that the demonstration witnessed a partial blocking of the streets, indicating a "very tight" security presence. LINK
KTFA Members "News and Views" Saturday 1-20-2021
.KTFA:
Don961: Deputy determines the final position on the possibility of changing the exchange rate and comments on the increase in sales of the Central
Posted 2 minutes ago Baghdad today - special
A member of the Parliamentary Finance Committee, Jamal Cougar, commented today, Saturday, January 30, 2021, on the high sales of the Central Bank of the US dollar, indicating that what is happening is a normal matter with the assurances sent by the Finance Committee and the government regarding the stability of the exchange rate of the dollar against the Iraqi dinar and that it will not be changed. In the 2021 budget.
Cougar said in an interview (Baghdad Today), "The central bank's sales declined after changing the dollar exchange rate against the Iraqi dinar, which generated great concerns among trade and importers and created instability in the market."
KTFA:
Don961: Deputy determines the final position on the possibility of changing the exchange rate and comments on the increase in sales of the Central
Posted 2 minutes ago Baghdad today - special
A member of the Parliamentary Finance Committee, Jamal Cougar, commented today, Saturday, January 30, 2021, on the high sales of the Central Bank of the US dollar, indicating that what is happening is a normal matter with the assurances sent by the Finance Committee and the government regarding the stability of the exchange rate of the dollar against the Iraqi dinar and that it will not be changed. In the 2021 budget.
Cougar said in an interview (Baghdad Today), "The central bank's sales declined after changing the dollar exchange rate against the Iraqi dinar, which generated great concerns among trade and importers and created instability in the market."
He added that "the return of sales to the increase means that merchants have realized that the exchange rate will be fixed in the draft of the country's general federal budget for the year 2021, with government assurances and assurances in this regard."
And that "high sales does not mean that there is the slightest doubt to raise the exchange rate before or after the budget is approved."
Last Wednesday, the central bank’s sales of the US dollar witnessed a significant increase, reaching 111 million dollars. On the following Thursday, the central bank sold 103 million, after nearly two months of fluctuating under the $ 20 million, due to the change in the exchange rate that I made. The government, as a step to address the country's fiscal deficit.
Last Tuesday, a member of Parliament, Ammar Tohme, submitted a request to the Presidency of Parliament, which included 16 amendments to the 2021 budget, including a demand to reduce the exchange rate to 1,300 dinars and to cancel deductions for certain categories of employees.
And (Baghdad Today) obtained a document for the request of Deputy Ammar Tohme, addressed to the Presidency of the Council, which included a request to reduce the exchange rate to 1,300 dinars, and to cancel deductions for employees with salaries below a million and a half.
Tohme’s request was supported by 113 deputies in the House of Representatives. LINK
DeepWoodz: Imo....Wasn’t this a benchmark we were told to keep an eye out for?
Don961: The British ambassador talks about his country's role in "supporting reforms" and arranging an Iraqi meeting with the IMF and the World Bank
12:03 2021/01/30 Baghdad today - Baghdad
The British Ambassador to Iraq, Stephen Hickey, said that the visit of the Prime Minister, Mustafa Al-Kazemi to London witnessed the agreement with the International Monetary Fund and the World Bank to support economic reforms in Iraq, indicating that the Ministry of Finance is now in negotiations with the International Monetary Fund to obtain loans to support the economy and hold elections .
Hickey said in a televised interview on Friday and followed by (Baghdad Today), that "during the visit of the Iraqi government delegation, headed by the Prime Minister, Mustafa Al-Kazemi, to Britain, London took it upon itself to support the Iraqi economy and brought together the International Monetary Fund and the World Bank with the Iraqi government delegation, To support the economic reforms undertaken by Baghdad, and this is what is happening now, "indicating that" Al-Kazemi has an opportunity to achieve economic reforms and he receives security support from Britain and the European Union countries . "
He added, "The Minister of Finance, Ali Allawi, is now in negotiations with the International Monetary Fund, to obtain loans, to support the economy and prepare for elections ." The International Monetary Fund had recently announced that it had received a request for emergency aid from Iraq .
"The Iraqi authorities have requested emergency assistance under the Rapid Financing Instrument, in a long-term arrangement, to support the planned economic reforms," the fund said in a statement, adding that "discussions are ongoing regarding the authorities’ request for emergency assistance . "
On January 24, Finance Minister Ali Allawi told Bloomberg that Iraq was in talks with the IMF to obtain a $ 6 billion loan .
Allawi indicated that Iraq may request an additional $ 4 billion in low-cost loans from the International Monetary Fund's government reform program . LINK
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Edna: People are tIred of being disappointed and they fear to believe that Iraq this time...this time...not like the countless other times..but This time...Iraq might actually due what we are told they must do.
Now anyone who's been in this thing for awhile has learned that Iraq don't "Have to do nothing" with their currency, in fact one could argue they prefer not to increase purchasing power, why? because governments don't give a rip about The people, they only care about themselves IMO.
So all week we have seen articles talking about the Budget this and the Budget that, with numbers all in Trillions not Billions. But "the rider" yeah, another mechanisms IMO to delay giving purchasing power to the citizens, Sure there is a rider, how long now do they get to sit on 1460 or 1190 or whatever before they must go one to one? and IMO that's the Million Dollar (Go to the Bank) question.
We know we got the budget..Big deal! What's it coming out at is what the....fear is..IMO. 1190, 1460 and Delta's position gains a lot more weight IMO...As always I pray I'm wrong....all
Zeeman: edna i do agree with you. it is not the negativity imo but its the constant hearing one thing then reading the opposite makes people undecided what to believe. If the GOI really is as stupid as they act and do not approve the budget they are screwing the people and the country.
The loans and help that was promised will not be there as promised due to lack of trust and corruption . you can just look in the past how much that was promised and how much of it was recieved.
IMO… as far as the budget being approved i do believe it will pass. but as far as the rate who knows . we will find out real soon on both
DeepWoodz: Funny how a storm RAGES the hardest.....RIGHT BEFORE it ends and the Son comes out shining brightly! Everythiiiiiing is gonna be alriiiiiiiiiiight....some daaaay! A little tune I sing sometimes..
Edna: This is a question...NOT an opinion. Silly me, I tend to ask the questions everyone wants to know (IMO) but are afraid to ask. So Monday or Tuesday comes and goes, they pass the budget at a program rate (Most likely IMO) because it's Iraq, How long can they SIT on an open budget at a program rate before they add value? or what is their intention of coming out a program rate? In other words, how much time can pass before they actually implement..activate....start...use...proceed. ..with "the rider"?..These are questions not Opinions. Secondly, why do all the articles refer to the Budget in Trillions?..."Inquiring minds would like to know"
Patriots12: Imo and imo only they can go on with little value to their currency and continue on the path of 1460 or 1190 with the same results they have now ... no middle class , poverty, ruling elite parties , Iranian control and more corruption .... open the auctions back up ... let More corruption gain in the political system and not be "International"... imo could happen but will be a mess !!! Or IMO fulfill what we have studied , complete their destiny and change the rate ... IMO has to happen now , where are the international companies poring in ? ATM's have to be full of lower category notes , border taxes, payroll taxes , Kurds happy , Saudi Border to open ect ect .. nothing to wait fior ... imo Now citizens need to see the show me the money as it can not fail with them IMO ...
Don961: The results of the devaluation of the Iraqi dinar
Friday January 29, 2021 - 18:32 Economic Researche
The Iraqi government decided, through the Ministry of Finance, to reduce the exchange rate of the dinar to finance the fiscal deficit with monetary issues. This decision has serious negative consequences, foremost among which is the deterioration of the citizens' already deteriorating living standards. However, the Ministry sees the reduction in several positive aspects.
On March 12, 2020, the Central Bank of Iraq website published a report by the governor entitled “Reducing the exchange rate of the Iraqi dinar. Limitations and alternatives. He highlights many disadvantages of lowering the exchange rate of the dinar, concludes that it is necessary not to resort to this process and suggests alternative mechanisms. This report, despite the valuable efforts exerted on it, does not address the real crisis of widespread corruption and mismanagement of financial affairs, especially from the spending point.
On December 19, the Ministry of Finance issued a decision to lower the exchange rate. And it listed various financial, commercial, investment, industrial and tourism gains.
Why is this apparent contradiction?
It appears that the central bank report was written before the outbreak of the Corona pandemic, which led to a decline in oil prices and thus to a decline in general budget revenues and a deterioration in the trade balance. These revenues decreased as of last May.
But the difference is wide between two things: The first is the timing of the currency devaluation decision. The second is the pros and cons of this process. The above justification is related to the first and not to the second. It is inconceivable that the devaluation of the dinar would lead to negative results before and after the Corona epidemic. The negatives and positives are related to the Iraqi economy and how it is managed.
The devaluation of the dinar resulting from issuances to finance the fiscal deficit necessarily leads to an inflation of the monetary mass, thus reducing the purchasing power of citizens. This negative impact across the board occurs in the presence or absence of this or that epidemic.
It appears that the Central Bank has retreated from its point of view, as it participated, along with the Ministry of Finance and other institutions concerned, to prepare the white paper calling for the devaluation of the dinar and defending it vigorously.
The Ministry of Finance issued a statement addressed to citizens in the form of questions and answers. The ministry’s opinion includes the implications of lowering the exchange rate of the dinar. We will discuss this opinion here and focus on five points.
Imported goods
According to the ministry's statement, the prices of "some commodities will rise at once to compensate for the exchange rate adjustments. The exchange rate adjustment should encourage the growth of domestic alternatives to imports. In due time, this will lead to price stability ..." The Ministry believes that the growth of these alternatives will lead to many positive results, including an increase in job opportunities.
The ministry's answer is vague, raises many questions, and is inaccurate. When do commodity prices rise once, twice, or multiple times? What is the meaning of good time? In fact, the devaluation of the exchange rate leads in all countries to higher prices for imported goods. Which affects the standard of living of citizens. And the vulnerability increases because of the importance of imports in the Iraqi rentier economy. The matter does not stop at various industrial tools, but rather extends to the main food products and energy.
Naturally the imports are in dollars. And since the rate of reduction of the dinar was 22.6%, the prices of imports rise, as a general rule, at the same rate.
The ministry is trying to link the devaluation of the dinar to improving local products. This link was repeated in the statement under study six times. This indicates the ministry's keenness to convince citizens of the positive results of the reduction. In her estimation, it increases domestic production, and thus unemployment and poverty. The balance of payments position improves as imports decrease, thus increasing foreign exchange with the central bank. Then the exchange rate rises.
In fact, these conclusions drawn from theory and applications of industrialized countries are not valid in Iraq. One of the peculiarities of Iraq is that the value of manufacturing industries is continuously declining, until it is currently at 2% of GDP. This is a weak rate compared to even the poorest countries in the world. Agriculture suffers from the same decline. Note that agricultural and industrial commodity production was occupying a prominent position at the end of the eighties of the last century.
This deteriorating situation resulted from the combination of several factors, foremost among which is the almost total dependence on oil revenues in all fields. Neglecting spending on scientific research and technological development. Widespread financial and administrative corruption. Violent internal conflicts that exhausted citizens and led to a decline in the country's international rankings in all fields. Discouraging local laws. The infrastructure is deteriorating. Iranian hegemony against the progress of Iraq.
Only after effectively addressing these factors can monetary policy play a role in the advancement of the industry. On this basis, the devaluation of the parity of the dinar necessarily leads to a rise in the prices of imported goods without improving domestic production. It also reduces the value of people's savings.
Savings
The Ministry of Finance differentiates between two cases:
The first case if the savings are in dollars. Adjusting the exchange rate leads to an improvement in its value.
The second case if the savings are in dinars. A person would earn a return on it if it was in the banks.
According to the ministry, the devaluation of the dinar leads in both cases to gains. This position has nothing to do with scientific analysis and objectivity in the proposition. It neglects the most important and broader case of the savings of individuals without going through the banking institution or in a foreign currency. This money necessarily loses its purchasing power.
Nor should it be said that the reduction leads to an improvement in savings in dollars. The ministry confuses value with quantity. There is an increase in the number of dinars, but there is no improvement in its value.
As for bank deposits that receive interest, they have lost their value due to the depreciation. The exchange rate of the dollar moved from 1182 dinars to 1450 dinars, meaning the value of the dinar decreased by 22.6%. Thus, in order for the value of these funds not to be affected, the interest rates must be at least equal to this ratio. At present, the deposit interest rate is only 7%. Meaning, these deposits lost 15.6% of their value. The lower the incomes, the greater the suffering.
Those with limited incomes
The Ministry of Finance poses the following question: What is the effect of the exchange rate on people with limited incomes? It provides the following answer: The government will take measures to offset the negative consequences of the exchange rate adjustment on the poor: increase social welfare allocations.
Indeed, social welfare allocations increased from 3.1 trillion dinars in 2020 to 5.0 trillion dinars in 2021. However, this increase does not address the problem created by the devaluation of the dinar for three reasons: First, because the amount of the increase is small compared to the size of this problem. And secondly, because the rise includes a fake increase equivalent to the rate of the dinar reduction. And third, because the draft budget for 2021 imposed several additional taxes that would put pressure on the citizens' standard of living.
Upon returning to the Ministry's question and answer, we notice the weakness of the methodology from two aspects: The first aspect is that the question must relate to the effect of reducing the exchange rate and not the effect of the exchange rate. And such imbalance is repeated in several paragraphs. The second aspect is that her answer is not related to the question posed. It was necessary to refer to the negative repercussions and not to government measures. Undoubtedly, those with low incomes suffer from the consequences of the devaluation of the dinar represented by the increase in the prices of goods and services more than those with higher incomes.
Retired
The Ministry divides retirees into three categories according to their place of residence.
First class: Residents of Iraq. The ministry does not see any negative impact on the level of their salaries.
The second category: Residents of the Gulf, Jordan and European countries. The purchasing power of their salaries changes due to the reduction.
Third class: Residents of Turkey, Egypt, Lebanon and Iran. The purchasing power of their salaries will not change because the currencies of these countries have fallen against the dollar.
Once again the answer suffers from a clear methodological flaw. It depends on the salary level when it comes to retirees residing inside. While it is based on the purchasing power of the salary when it comes to retirees residing abroad.
There is no doubt that the reduction does not affect the salary level, whether the person is employed or retired, and whether he is residing inside or outside the country. The cash reduction has nothing to do with the size of the salary but rather to its purchasing power. Of course, the size of the salary may decrease, but not because of a cash cut, but as a result of completely separate procedures.
Because of the high prices of goods and services, the retired person is harmed in this, the case of any other person residing inside. As for those who reside abroad, the purchasing power of their salary falls wherever it is found. What applies to the retired resident abroad is true for the Iraqi tourist.
Travelers abroad
The ministry believes that Iraqis traveling to Turkey, Lebanon, Egypt and Iran will not be affected by the devaluation of the dinar because the currencies of these countries fell against the dollar. Meanwhile, costs for travelers to Europe, America and other industrialized countries are rising.
The ministry compares the sums in the currency of the host country, which the Iraqi used to obtain years ago, and the sums in the same currency that he is currently getting. For example, an Iraqi allocates one million dinars for tourism in Egypt. Before November 2016, the dollar exchange rate was 11.5 pounds in Egypt and 1182 dinars in Iraq. One million dinars was equivalent to 9,729 pounds. Now, the dollar exchange rate is 15.7 pounds in Egypt and 1450 dinars in Iraq. That is, one million dinars became equivalent to 10817 pounds.
Of course, this comparison is incomplete and inaccurate. Deficient because it does not take into account the implications of the devaluation of the pound on consumer prices. The goods and services that an Iraqi tourist in Egypt gets in a million dinars is now much less than the goods and services that he used to get before 2016. It is inaccurate as it is necessary to know the value of one million dinars in the pound before and after the reduction of the dinar exchange rate. This is what is important. Six weeks ago, the value of one million dinars was 13282 pounds, then it has become now, due to the devaluation of the dinar, 10,817 pounds. That is, the dinar lost 22.6% of its value against the pound. It is, of course, the rate of decline of the dinar exchange rate against the dollar. The same analysis applies to an Iraqi residing in Egypt who received remittances from Iraq. There is no difference in that between one country and another.
It should be noted that transportation fares for Iraqi tourists have risen in dinars because they are specified in dollars.
The decision to reduce the par value of the dinar was taken for one reason only, which is to finance the budget deficit, which reached an unprecedented amount. The matter has reached such a degree of danger that the government has become the next option: either to stop fulfilling its financial obligations, foremost among which is not to pay employees' salaries or to reduce the exchange rate.
For this reason, the reduction does not yield positive results regarding local production, tourism, investment or employment opportunities. On the contrary, this monetary measure has several effects, all of which affect the decline in the standard of living of citizens, especially those with low incomes.
The devaluation of the dinar does not represent a solution to the financial crisis that the country has been suffering from for several years due to the failure of economic policy due to government options and rampant corruption. Rather, it is a logical and inevitable consequence of this policy. Hence, this crisis can only be addressed with a fundamental change in this policy.
Morning coffins Economic Researcher link
Petra Thursday PM "Sounds Like A Photo Op To Me!" 1-28-2021
.KTFA:
Petra: "the Parliamentary Finance Committee will, next week, distribute copies of the revised draft of the Maronite law to the heads of political blocs 24 hours before the date of the voting session on the budget law." The source pointed out that "next Monday is the day set for resuming parliamentary sessions and voting on the budget law."
So, IMO, BIS requires at least 24 hours notice prior to any formal rate change within all CB's around the world. They, in turn, relay that information back to all the CB's globally.
Now, if you read what I just posted the final "draft" will be sent.....24 hours prior to the vote. Interesting timing. This may be something, maybe nothing, but it sure falls in line with rate before budget.
KTFA:
Petra: "the Parliamentary Finance Committee will, next week, distribute copies of the revised draft of the Maronite law to the heads of political blocs 24 hours before the date of the voting session on the budget law." The source pointed out that "next Monday is the day set for resuming parliamentary sessions and voting on the budget law."
So, IMO, BIS requires at least 24 hours notice prior to any formal rate change within all CB's around the world. They, in turn, relay that information back to all the CB's globally.
Now, if you read what I just posted the final "draft" will be sent.....24 hours prior to the vote. Interesting timing. This may be something, maybe nothing, but it sure falls in line with rate before budget.
They are to vote on Monday as Tuesday is their "last day of session!" So, timing is sure unique and allows the ledger to reflect the rate change retroactively back to Jan 1. Again, IMO.
So here is another thought. The article indicating that the Kurds are to return next week for "more discussions" Really? The budget is done and agreed upon. The Kurds received their 12.7% of the budget. HCL is done and waiting for the final draft. So.....why are the Kurds coming back????
Sounds like a photo op to me and IMO. Just taking their data, extrapolating it, and validating our thought process. Makes sense to me at least but that's not saying much....LOL....PETRA
Samson: Finally, the 2021 budget is ready for approval in Parliament
28th January, 2021
A representative source said, on Thursday, that the draft General Budget Law for 2021 is ready for voting in Parliament.
The source told Shafaq News Agency, that "the budget law has become ready for voting in the House of Representatives after amendments were made to some articles of the law and the deficit was reduced by 50% after it was 71 trillion dinars."
He added that "the Parliamentary Finance Committee will, next week, distribute copies of the revised draft of the Maronite law to the heads of political blocs 24 hours before the date of the voting session on the budget law."
The source pointed out that "next Monday is the day set for resuming parliamentary sessions and voting on the budget law."
Next Tuesday falls on the second of February, the last day of the legislative term of the House of Representatives after it has been extended for a month, and that Wednesday is the first day of the start of the legislative recess of the House of Representatives, and the House has not announced whether it will extend the separation to vote on the budget or enter the holiday. LINK