MilitiaMan and KTFA Members "Digital System Coming "Into Play" 2-21-2021

KTFA:

Samson:  Parliamentary Finance Explains The Reasons For The Delay In Paying Employees' Salaries

21st February, 2021

The Finance Committee clarified, today, Sunday, the reasons for the delay in paying employees' salaries, specifying the party responsible for the delay.

  A member of the Finance Committee, Naji Redis, said, "The notice of employee salaries being paid was delayed due to the general conditions that the country is going through from Corona and the comprehensive curfew."

Noting that "salaries will not be delayed this month or the coming months and they are fully insured."

He noted, "Finance depends on the 12/1 system for the payment of salaries, and the delay that accompanies the payment of salaries every month is borne by the Accounting Department at the Ministry of Finance for its reliance on old mechanisms in banking transactions, despite the incident of the financial systems followed in the world and the Central Bank of Iraq in particular." 

He added, "It is likely that major changes will be made in the accounting department at the ministry, since it is still insisting so far on using old methods instead of modern ones in sending salary payment notices to employees."     LINK

MilitiaMan:  This sure looks like there is a consensus in that they know a new mechanism is coming into play. Modern is not in the old but new mechanism.

Well that to me suggest they are to pay in a timely manner with a new rate (mechanism) in the future. A mechanism applied in such a manner that fully insures payments will be on time and not delayed any longer.

Thereby, we can deduce they have a digitial system coming into play. Probably one that will interlink with not only internal transactions but, regionally and globally.. imo. I like it..  ~ MM

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Samson:  The Iraqi Interior Minister arrives in Saudi Arabia at the head of a high-level delegation

21st February, 2021

The Iraqi Minister of Interior, Othman Al-Ghanmi arrived today, Sunday, in Riyadh, the capital of the Kingdom of Saudi Arabia, on an official visit.

The statement of the media office of the Minister of Interior stated, received by Shafaq News; The Minister of Interior, Othman Al-Ghanimi, arrived in Saudi Arabia at the head of a high-ranking delegation that included a number of ministry leaders.

Without disclosing the purpose of the visit, which had not been announced previously.   LINK

Cleitus:  Perhaps they are there as part of the launch of the new electronic payment system (QFS).  BTW, set for launch today.  All, IMO, of course...

MilitiaMan:  Perhaps.. Lol.. I would say your spot on. Things of this nature are not by coincidence, they are by design and a purpose.. imo.. ~ MM

Samson:  Document .. Opening an investigation into financial corruption, bribery and extortion inside the Iraqi Ministry of Defense

21st February, 2021
The Iraqi Minister of Defense, Jumah Anad, has directed an investigation into the existence of financial and administrative corruption in the General Directorate of Veterans Affairs and the Ministry of Military Retirement Department.

According to a document appended to the minister's signature, he directed the formation of an investigation committee with cases of financial and administrative corruption, extortion and bribery in both directorates.

He directed that the committee accomplish its work within 14 days, starting from the date the committee was assigned on 2-14-2021.   LINK

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Samson:  Parliamentary integrity: $ 600 billion smuggled by Iraqi officials, under false names, to international banks

16:25 - 02/21/2021

On Sunday, the Parliamentary Integrity Committee revealed that there are between 450 to 600 billion dollars in foreign banks, which are Iraqi funds that were smuggled abroad, indicating that the committee intends to recover it.

A member of the Integrity Committee, Abdul Amir Al-Mayahi, told Al-Maalouma that "influential personalities and officials in the political process have smuggled money out of Iraq from 2003 until now with fake names placed in those banks and the names of their relatives."

He added that "the size of this money is estimated at 450 to 600 billion dollars," noting that "the funds are huge and it could contribute significantly to solving the Iraq crisis."

Al-Mayahi explained that "the committee is hosting the head of the money recovery department in the government for the purpose of travel and forming a committee to follow up on those funds and recover them to Iraq."  LINK

MilitiaMan and KTFA Members: "More Going On Than Meets The Eye" 2-20-2021

KTFA:

Samson:   The head of a parliamentary committee reveals an upcoming meeting to agree to pass the budget

09:13 - 20/02/2021

The head of the follow-up committee for the government program, Hazem al-Khalidi, revealed, on Saturday, an upcoming meeting between the three presidencies and political leaders to agree on passing the budget.

Al-Khalidi said in a statement to "the information", that "the three presidencies will hold several meetings during the next few hours to agree on the disputed items in the budget," indicating that "the meeting will discuss the crisis between Baghdad and Erbil, pass the budget, the date for its presentation, and what measures have been taken before Parliament after the arrival of the budget”.

Al-Khalidi indicated that "it is not possible to allow the Kurdistan region to agree outside parliament on the budget and to fully deliver its oil to ensure the rights of its people, as is the case in other provinces."

The Finance Committee in the House of Representatives announced, on Friday, that it will set next Thursday as the date for voting on the General Budget Law for 2021, despite the continuing differences between the center and the region.  LINK

Samson:   A deputy reveals that Baghdad and Erbil reached a "semi-final agreement"

11:52 - 02/20/2021

A member of the Parliamentary Economic and Investment Committee, Nada Shaker Jawdat, suggested starting the first session of voting on the budget next Monday, because she obtained information indicating that a semi-final agreement had been reached between the region and the center.

Jawdat said in a statement to "the information", that "information that we received from a confirmed source indicates that the Parliamentary Finance Committee and the regional delegation reached a semi-final agreement on the budget."

She added that "the two negotiating teams have reached compromise solutions that satisfy all parties", likely "holding a voting session on the draft budget bill next Monday."

It is noteworthy that the region’s delegation is still in Baghdad and is conducting numerous meetings in order to overcome obstacles regarding the region’s share and the dispute over the mechanism of work on the region’s oil, border crossings and taxes.   LINK

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MilitiaMan:  The talk and banter about the when in regard to the 2021 Budget is obviously for a reason to suggest something along the lines of look at my left hand while the right hand is doing something different for a purpose. The right hand is doing something that is within a time frame and it is all about a when, in respect to the execution of a mechanism.  In my view there is a when for an execution of one and it is inevitable and imminent. imo..

"As adjectives the difference between imminent and inevitable
is that imminent is about to happen, occur, or take place very soon, especially of something which won't last long while inevitable is impossible to avoid or prevent."

MilitiMan:  There is more that is going on around the world than meets the eye at first glance. If we think in terms of a digitized world communication comes to mind. Trade partners need to be able to communicate.

Therefore, they will need to be able to talk on a similar platform. The platforms are to have to be able to clear and settle transactions. 

They will also need language and expressions for the executions of mechanisms globally. Just like the AMF expresses their exchange rate at 3x the SDR basket of the IMF in SDR unit / US dollar terms. Not unlike other countries the all need to be able to communicate and all will have their way of expressing the way they will trade in terms of exchange rates (ER).

So what does this have to do with the 2021 budget...? The budget needs a mechanism (ER) prior to execution of it. The three presidencies all know there is to be a new e-government, e-finance, e-taxation, e-payments, etc.]

Just read the news today on the matter. It is real and is now coming into  play. Also, many other countries will be simultaneously interconnecting with each other, imo.

The Digitization for payments in Saudi Arabia starts internally tomorrow. The BUNA platform for the AMF is fully underway and it is inclusive of the USD among the middle eastern countries that are many. The IQD is to be one of them!! 

The mechanism that is being hid under the guise of the budget banter back in forth is about to be executed out to the world. It has to. There is no longer a choice in the matter. Why?

They us tell why. The devaluation of the IQD is one reason. It is inflationary and fixes nothing.  They are to return to the previous era to accomplish what the white papers have outlined for the future.

There is a time frame within them, I'll bet timed accordingly to interlink global trade and on a level playing field. imo ~ MM

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17th February, 2021

The government warned of the "dangers" of not adhering to the reform plans contained in the "white paper",  noting that the paper works to  create the appropriate conditions for the country's economy to recover and grow

The IMF expects the Iraqi economy to recover in 2024 Monday

 15th February 2021 10

They welcomed the fiscal reforms that the authorities are planning to undertake, as mentioned in the “white paper”, and urged that care be taken in setting their priorities and speeding up their implementation with the limit. Of its impact on the categories Fragile. (vulnerable citizens)

The budget. They agreed that adjusting the exchange rate would help reduce external imbalances and preserve foreign exchange reserves. They stressed that a strong fiscal framework is still necessary to ensure the credibility of the new exchange rate against the dollar and reduce the need for monetary financing for the budget in the future.

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Yes Iraq: Baghdad

The talk returned again about the exchange rate of the dollar against the dinar, and the need to reconsider it, despite the final discount revealed by the Finance Committee throughout the previous period, not to tamper with the exchange rate or return it to its old price and fix it in the budget.

Talking about political consensuses or parliamentary attempts, which ended and the door was closed to them after the statements of the Finance Committee, but a conversation has been going on for days about a "legal loophole" that may return the exchange rate to its previous era.

Al-Aqabi explained that "the current trend is towards forming a political bloc that mobilizes in order to restore the unfair decision against the Iraqi economy to raise the price of the dollar and return it to its previous era." Link

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DeepWoodz:  Article 88

Communications is looking to implement the electronic transformation project in the Ministry of Labor

“based on the directives of the Minister of Communications, Arkan Al-Shaibani, regarding the need to accelerate the implementation of electronic transformation projects in ministries and government departments within the e-government projects”

.......instead of looking for the budget to reveal the rate.....FOR FUN!......I’m thinking more along the lines of bringing the rest of the government up to speed....as mentioned in this article.

I mean, if your asking what in the world are they waiting on.....

Technology to facilitate transparency?

With all they’ve done in the banking system, is it a stretch to think they also need 4G and e-government to be up and running? 4G was recently brought up on an experimental level from previous articles. 88 mentions their e-government is a work in progress. 

I’m just trying to reason out why they allow the citizens to suffer on and on. There has to be something besides a lack of concern.

We’ve learned Buna is ready and even Kadhimis financial advisor is telling everyone...and I quote...

“Iraq is on the brink of economic recovery, indicating that the Supreme Committee for Reform has important decisions to advance the public and private sectors.” Post 23

I REALLY LIKE the word BRINK!!!

PS.....I say these things totally in agreement with MM comments above!

Don961:  A new system for instant transfers between clients of Saudi banks

Posted 2 hours ago

News source / Independent Press Agency

The Independent / - The Saudi Central Bank launches, starting from Sunday morning, a new system for instant transfers between bank customers, operating around the clock, at a lower cost, with the aim of enabling financial institutions, companies and individuals to complete transfers between different banks in a more flexible manner.

According to a statement by the Central Bank, the new system contributes to reducing dependence on cash, as well as reducing operational costs.

In its statement issued today, Saturday, the Central Bank said that the system developed by “Saudi Payments” will enhance economic development by increasing the effectiveness of financial transactions between all parties in the corporate and retail sectors, and enabling banking institutions and financial technology companies to improve existing financial products, and manage cash flows for the sector.

It will also contribute to increasing transparency in payments between companies and individuals, activating innovation in financial services, as well as raising the quality of services provided to the final beneficiaries.

The percentage of transfers executed between banks in Saudi Arabia through the Saudi Rapid Transfers System jumped 30% in 2020 to reach 52.3 trillion riyals, compared to 40.3 trillion riyals in 2019, according to data from the Saudi Central Bank.

The post A new system for instant transfers between clients of Saudi banks appeared first on the Independent Press Agency.   LINK

KTFA Members "News and Views" Friday Afternoon 2-19-2021

KTFA:

Samson:  To the executive branch to the Central Bank of Iraq

17th February, 2021

Proposing the need to amend the exchange rate of the Iraqi dinar towards the US dollar.

1. The devaluation of the national currency of the Iraqi dinar in favor of the US dollar and making the exchange rate of the dinar against the US dollar at 1450 is an unfair, ill-considered and urgent exchange rate, which is against the interest of the Iraqi people and economy, and that the first beneficiaries of that are regional and international countries and Arab and foreign companies and the ruling political elite ... as the wealth of the Iraqi people is bought cheaply according to the new exchange rate, and this means systematic plundering ((the law)) of the wealth of our Iraqi people, at a very low price, and he played in achieving this the failure of the Minister of Finance and the President of the Central Bank of Iraq according to Guidance from the International Monetary

2. That the ruling authority today represents and applies an extremist and brutal neoliberal approach according to the directives of the International Monetary Fund and the World Bank, and that today's exchange rate of 1450 is in the interest of the ruling political elite, in the interest of the leaders of the political parties, blocs and political currents influential today in government and in cooperation and coordination with the administrative and bureaucratic bourgeoisie, the shadow economy forces, and the mafia-brokers ... so they have seized the wealth of the Iraqi people and became millionaires and billionaires, in the American dollar and the Iraqi dinar, and with this stolen money, state institutions will be bought from factories and large factories, oil and gas, agricultural land, fuel and electricity stations, and other state assets at a very low price and without oversight, and the well-known popular proverb applies (((( He eats without supervision and calculation.

3. A new exchange rate is required for the Iraqi dinar towards the US dollar, which is one dinar equals one US dollar. This requires deleting the three zeros, for example, the 1000 dinars become Iraqi dinars, and the million dinars (1,000,000) a thousand Iraqi dinars (1000), and according to the new exchange rate 1000 dinars equals 1000 US dollars, and this is in the interest of the Iraqi citizen and economy as a first stage and work in the future to return a new exchange rate Each dinar equals $ 3, as it was

4. That this can be achieved because Iraq is rich in its natural wealth of oil, gas, gold and phosphates ... .. In addition to that, there is a realistic possibility to develop agricultural and industrial production ..., that is, to create material production in order not to import and this will be in the interest of the national economy by not buying goods Food, medicine, and durable goods in hard currency, and then Iraq can export goods and services abroad and obtain hard currency, as well as work to retrieve the stolen money and return it to the Iraqi people, which ranges between 850-trillion dollars. One dollar for one US dollar

5. The Iraqi people, public and professional organizations, national, progressive and left-wing personalities, and professors of Iraqi universities and institutes, must demand a new exchange rate adjustment in the interest of the national economy   LINK

Clare:  THANK YOU SAMSON!...THIS IS EXACTLY WHAT WALKINGSTICK & FRANK TOLD US TO EXPECT!! 
THIS IS AN AWESOME ARTICLE..SO IS WHAT FRANK SHARED LAST NIGHT...

Wil:  mic drop!

Sarge:  Ohhh Yeaaaaaaaa Babyyyyyyyyy!!!!!!

Jerry1971:  THANK YOU SIR FRANK AND SIR WALKING STICK  FOR THE GREAT CONFERENCE CALLS AND AS YOULL HAD INFORMED THE FAMILY ZERO DELETION ARTICLES ARE COMING OUT ONE AFTER THE OTHER IMO….. HOPEFULLY BY NEXT WEEK WE MAY SEE THE NEW EXCHANGE RATE AFTER THEY COMPLETE THE BUDGET …..EXCITING TIMES HERE IN DINARLAND

Clare:  THE 3 ZEROS WILL BE REMOVED FROM BOTH (NOTES & EXCHANGE RATE)- HENCE IN THE ARTICLE IT SAYS "and according to the new exchange rate 1000 dinars equals 1000 US dollars,"  THAT IS A 1 to 1 EXCHANGE RATE RIGHT THERE IN IRAQ... imo

Samson:  Video - Decades of plundering: Where has Iraq's oil wealth gone?

13th February, 2021

Ranked as the fourth-biggest oil producer in the world, many would assume that Iraq has the financial resources to weather the pandemic.

But that is not the case - its fragile economy is struggling to cope and it may turn to the International Monetary Fund for assistance.

It has already devalued its currency by almost a fifth, enabling it to eke out more dinars for dollars.  Ahmed Tabaqchali, the chief investment officer of AFC Iraq Fund, helps explain where all of Iraq's money goes:

VIDEO IS IN ENGLISH - 26 MINS LONG   LINK

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Samson:  Parliamentary Finance: To vote on the 2021 budget next Thursday

19th February, 2021

The Parliamentary Finance Committee has suggested, next Thursday, a date for voting on the 2021 budget after reaching a final government agreement on the region's oil exports.

A member of the Parliamentary Finance Committee, Sadiq Mudlul Al-Sultani, revealed, according to the official agency, that "the federal government and the regional delegation reached a semi-final agreement on the region's oil exports and its share in the budget."

Al-Sultani added, "The agreement is to deliver 250,000 in-kind barrels per day for the benefit of the National Oil Marketing Company (SOMO), and the remaining production will be paid in the form of production, marketing and domestic consumption costs in the region."

He continued, "It is likely that the budget will be presented to a vote next Thursday after the final agreement is drawn up between the parties in the draft budget."     LINK

Jerry1971:  AT LAST FINALLY I HOPE THEY GET THIS BUDGET DONE AND APPROVED SO AS FOR THE OTHER GREAT THINGS TO HAPPEN FOR THE IRAQI CITIZENS ….NAMELY THE WHITE PAPER REFORMS N NEW EXCHANGE RATE RELEASED ….IMO

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Don961:  A rare event for the US Central Bank .. What is it?

Economy  ,   2021/02/18 10:47   Baghdad - Iraq today:

Last month, US Federal Reserve officials discussed ways to prepare the ground for public opinion to accept expected inflation.

They also discussed the necessity to "watch out" for any indications of pressures in the rising asset market, in the face of an economy whose wounds have not yet healed, which may need a longer period to recover fully.

The job market is distressed

According to the minutes of the central bank meeting on 26 and 27 January, the discussions covered various issues, from popular views of inflation to the phenomenon of stock trading platforms for individual investors.

According to Reuters, Reserve Board officials expressed their willingness to maintain a policy of monetary easing in order to reform the distressed labor market.

In light of expected jumps in some prices during the spring, "many participants stressed the importance of differentiating between such infrequent changes in relative prices and changes in the basic general trend of inflation," according to the minutes of the meeting released today.

Financial system bubble

In an effort to explain the difference to the public opinion, "the participants stressed the importance of isolating the temporary factors affecting inflation," and others expressed concerns about the formation of a bubble in the financial system.

Some participants called for vigilance in order to maintain the strength and durability of the banking system, while others addressed the rise in asset values, "which may be a product of individual investors' trading via electronic platforms."

They agreed that "the economy is far from achieving the target of maximum employment, and that even with a rapid pace of improvement in the labor market, achieving this goal will take some time."

The Fed made only minor changes to the monetary policy statement issued at the January meeting, and did not release new economic forecasts.

Interest is close to zero

The US central bank has pledged to keep the key interest rate close to zero until inflation is “moderately high” from its 2% target and for the labor market to approach “maximum employment,” which means that interest rates are likely to remain low for years.

The Fed also pledged to continue buying $ 120 billion of government bonds per month until there is "more tangible progress" towards inflation and employment targets.

The trade deficit is wild

The US trade deficit increased to its highest level in 12 years in 2020, as the Covid-19 pandemic disrupted flows of goods and services.

The US Commerce Department said, at the beginning of this month, that the trade deficit jumped 17.7% to 678.7 billion dollars last year, the highest since 2008.

The decline in exports contributed to the economy contracting 3.5% last year, the largest decline in GDP since 1946. The

worst performance since 1946

The US economy contracted in 2020 at the most severe pace since World War II, as Covid-19 stormed services activities such as restaurants and airlines, causing millions of Americans to lose their jobs and fall into poverty.

The economy shrank 3.5% in 2020, its worst performance since 1946

This followed a 2.2% growth in 2019, the first annual decline in GDP since the Great Recession between 2007 and 2009.

The economy slipped into recession last February.

With the virus not yet contained, economists expect a further slowdown in the first quarter of 2021 before accelerating again by the summer with the adoption of additional stimulus and the vaccination of more Americans.   LINKLINK

MilitiaMan Thursday Night "A Digital Requirement and Level Playing Field" 2-18-2021

KTFA

Samson:  Completion of the second phase of a new border crossing between Iraq and Saudi Arabia via Najaf

18th February, 2021

Work continues on the completion of the work of the first and second stages of the land road that connects Najaf Governorate with the Kingdom of Saudi Arabia, which started its work since last December, after a hiatus that lasted for years, as this road is expected to contribute to reviving the tourist and archaeological areas, and increasing trade exchange between Iraq and Saudi Arabia.

The noble Najaf Governorate hopes to transform the "border control" with Saudi Arabia into a border crossing that includes areas for trade exchange, such as the Arar port in Al-Anbar Governorate, and the expected Jumima in Al-Muthanna governorate.

It is noteworthy that the relations between Baghdad and Riyadh have witnessed great development at various levels, as they culminated in the establishment of the Joint Coordinating Council between the two countries, with the intention to enhance trade and investment exchange between the two countries. 

The governor of Najaf, Louay Al-Yasiri, said in an interview with Al-Sabah newspaper, which was followed by Al-Iktissad News, that “the local government is seriously following up the implementation of this vital project,” while attributing the reasons for the delay to “the financial crisis and the war against ISIS terrorist in 2014, the same year in which it was referred Ministry of Construction and Housing Project for implementation". 

He pointed out that "this road will be available for pilgrims to the House of God who take the land roads, and it shortens a large part of the distance that pilgrims travel through the Arar border crossing," expressing his hope that "this project will make a major economic shift for the governorate because it will serve a lot of Agricultural, industrial and residential projects in that region, and there will be great openness by the maintenance of these areas because of the presence of this vital road". 

For his part, Director of the Roads and Bridges Division in the governorate, Haider Hamid Atshan, said, "The total length of the road is 239 km, which the Ministry of Construction and Housing is implementing in stages at a total cost of 168 billion dinars, and two phases of this road have been referred, with a length of 50 km for each stage."     LINK

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MilitiaMan:  Adding in that they are to have internal digital payments on 02/21/2021. Keep in mind the connected to the BUNA system too.

The Buna system is digital as well. Iraq's border's were to be digital or electronic on 01/15/2021. Trade minister offered 10% discounts if importers and exporters used the electronic system too. 

The next day 01/16/2021 the Chinese Joint Ventured with the SWIFT System to clear digital Yuan. Feb 04+- / 2021 JP Morgan was selected as the Bank to clear the USD on the Buna system. See the pattern here? I sure do.

A level playing field has a digital signature all over it.. imo.. I like what I see and soon to be even better!! All of the afore is not a coincidence.. It is imo by design. ~ MM

"Following the successful completion of trials, the digital transactions scheme will be activated with participating banks on Feb. 21, according to Asharq Business."

https://www.arabnews.com/node/1807766/business-economy

Barzani’s advisor: they agree with Baghdad regarding the region’s oil and Sesta's destinations  LINK

The Kurdish delegation reveals the latest results of its negotiations with Baghdad on the budget LINK

The Kurdistan government confirms that a quasi-agreement has been reached between Baghdad and Erbil  LINK

MilitiaMan:  It looks to me like they have a deal since 12/2020 and now seem to be hammering out past arrears. They mention there is debt installment payments that are to extend out 10 years.  They were audited and looks like they have some payments necessary to get settled up..

Looks like they have a new formula to use too. It goes to the thinking that a new formula is based of a future exchange rate differential. They will have to have be part of the electronic system at the borders to exclusively to the non oil revenues to the treasury. 

Sure looks like that last statement is to be a digital requirement.. A level playing field.. They sure seem to suggest that they will have this sorted this next week or between now and then anyway..

We shall see, but, know this, from the articles out about the White Papers and having the extreme pressure to alleviate the pain of 1460. The change to another era is just as important now than ever.

In my view, there is no going back.. imo A good thing.. imo ~ MM

KTFA Members "News and Views" Thursday Afternoon 2-18-2021

KTFA:

DeepWoodz:  Imo...We all know the rate change is coming. We have all been reading the articles, although I’m skimming them less and less, and we’ve all settled our minds on the budget.

I suggest that we focus on all the other things going on because we are looking through a stained glass. We have biased opinions that are only concerned with the rate.

No one can answer this, what are they waiting on? What step is left?

Frank, Walkingstick, and teams have helped us understand the things that have taken place but cannot tell the future. Nor will they even try for good reason, only God knows the future.

Of course the budget is an indicator of things to come, speculation about our speculative investment.

There is a timetable that has been put in place but timetables are created with goals in mind. It’s not just some random times they draw out of a hat.

So what else is going on? Are their laws being passed, are they getting ready for the elections, isn’t parliament going to be dissolved shortly after the budget is done? How does this all fit together because it surely does, and we are another day closer.

The Snod:  Peep’s, I really don’t think we are in any kind of trouble.  These other countries and powerful entities don’t keep coming into Iraq for the night life or the beaches.  If it’s dragging it’s likely from the pulling in of the 000’s, waiting for oil to hit $60 (it has), and bringing Iran closer to the table (happening) and the opening of some arteries in and out of Iraq. $ gotta flow!!!  Perhaps more (probably not much more if any).  The time to be concerned would be if they continue to be more secure THEN everyone gets disinterested.  That isn’t happening right now!  So far; so good, yet I get the frustration.  It is tantalizingly close right now, so a little angst is going to be natural.

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Samson:  To settle the budget, Saleh seeks to count an expanded meeting that includes the three presidencies

18th February, 2021

Today, Thursday, an informed source revealed that the President of the Republic, Barham Salih, is making efforts to hold an expanded meeting to resolve the budget file.

The source said to Alsumaria News, that Saleh "intensifies his contacts in order to hold an expanded meeting that includes the three presidencies and leaders of political blocs to resolve the budget file in a way that guarantees the rights of everyone away from marginalization."

"So that voting on the budget is satisfactory to all provinces," he added.   LINK

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Samson:  Advisor to Al-Kazemi: The Ministry of Finance will make a change to the 2021 budget

18th February, 2021

Advisor to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, revealed, on Thursday, February 18, 2021, that the Ministry of Finance will make changes to the General Budget Law for 2021.

"The Ministry of Finance will make the required adjustments and it is responsible for preparing the budget under the Financial Management Law before submitting the amendments to the Cabinet for approval and submitting it to the House of Representatives," Saleh told Al-Obelah. He added that "Iraq received strong support in the face of its double economic crisis (health and financial) from the Financial Alliance Group following the success of Iraqi diplomacy in continuing its dialogues with international institutions."

He pointed out, "the formation of the Supreme Committee for Reform as (the central executive force) to manage economic reform and rehabilitation of the national economy with a unified vision and road milestones that seek its goals and according to the principles of the White Paper itself." 

 He explained that "the white paper came from the beginning as central principles of reform, and its application must bring about a change in the paths of the national economy and transform it from (recurrent economic crises and recession economy) to (a stable and sustainable development economy).

And he indicated that "the international financial and economic community itself has begun to look at issues of promoting productive and investment activity and stabilizing sustainable development goals that deserve support from its multilateral institutions such as the World Bank and others and many United Nations development agencies."

He pointed out that "the establishment of a central national reference and implementation of economic reform will inevitably allow a positive deal with the international community in the attribution of development, economic progress and stability in Iraq.  LINK

Samson:  Oil could reach $ 100

18th February, 2021

Two of the largest banks on Wall Street in the United States expected a rise in oil prices during the coming period, according to the American "Financial Times" newspaper.

The source stated that both "JP Morgan Chase" and "Goldman Sachs" expect oil prices to rise significantly when the Corona epidemic recedes. He explained that the most optimistic expectations indicate a return of international crude oil prices to $ 100 a barrel, a level that has not been reached since 2014.

The expected rise is based on the belief that the fiscal stimulus will boost consumption, along with the beginning of a return to normal life.

This would change the conditions in the oil sector, which recorded record losses last year due to the repercussions of the Corona virus. "We can see oil cross $ 100 a barrel, or even more," Christian Malek, head of oil and gas at JP Morgan, said in a conference call last week.

For his part, Geoffrey Curry, a veteran analyst at Goldman Sachs, said he believes oil is trading in the $ 80 range or higher this year.  He continued, "The launch of financial incentives targeting the middle and lower classes will boost consumption of basic commodities ... This category does not drive electric cars, they drive regular cars."

Since the end of October, Brent crude, the international benchmark, has risen by more than two-thirds to $ 63 a barrel, driven by optimism left by the global vaccination campaign and production cuts.   LINK

KTFA Members "Wednesday News" 2-17-2021

KTFA:

Samson:  The Minister of Finance inaugurates the electronic comprehensive application project in Al-Rafidain Bank

The Minister of Finance, Ali Allawi, inaugurated, on Wednesday, the comprehensive electronic banking application system project in the Rafidain Bank

The bank said in a statement that Mawazine News received a copy of it, that "the Minister of Finance, Ali Allawi, inaugurated today, the comprehensive electronic bank application system in the Rafidain Bank

The statement added, "The opening ceremony was attended by the Minister of Finance, Director General of Al-Rafidain Bank and other personalities who considered this system a positive sign in the application of electronic work in the bank away from the traditional paper methods   LINK

Samson:  The Minister of Finance announces the launch of the new experiment in the comprehensive banking system

17th February, 2021

On Wednesday, Minister of Finance, Ali Abdul-Amir Allawi, inaugurated the Al-Alawi branch in the Rafidain Bank, according to the comprehensive banking system

The ministry’s media office said in a statement received by Al-Iqtisad News that, “Under the auspices of the Minister of Finance, Al-Rafidain Bank opened the Al-Alawiya branch in Al-Firdous Square in accordance with the comprehensive banking system

Allawi said, during the opening, according to the statement, that "the new branch is part of the development plan pursued by the Ministry of Finance by adopting modernity and development in the application of the banking system," adding that "this branch represents the real start towards popularizing the new experience in all Iraqi banks

The statement stressed that "the departments of the Ministry of Finance are working hard and continuously to improve the quality of services provided to citizens

The opening was attended by the General Director of Al-Rafidain Bank, the branch manager and the bank’s staff   LINK

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Samson:  The second part of the white reform paper

17th February, 2021

The second part of the White Reform Paper, which was approved by the Council of Ministers in its session held on 10/13/2020, and in accordance with its Resolution No. (148) for the year 2020, the second part of which includes a group of projects, which numbered 64

To view the second part of the paper click here:   https://1drv.ms/b/s!Ap1aTnwoJ4CNpj5A-cZgLLKZDEbR   LINK

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Samson:  Tueller meets with the U.S. Chamber of Commerce U.S.-Iraq Business Council (USIBC) to discuss how the United States is collaborating with Iraq to grow a thriving economy

17th February, 2021

Ambassador Tueller met with the U.S. Chamber of Commerce U.S.-Iraq Business Council (USIBC) to discuss how the United States is collaborating with Iraq to grow a thriving economy.

"We continue to work towards helping Iraq become a stable, secure, and prosperous country.

We would like to see Iraq take full advantage of its vast energy resources to become more energy independent, and we would like to see increased trade and investment that can stimulate the private sector, create jobs, and provide the foundation for a better future for all Iraqis.

"In this vein, we remain focused on implementing the agreements made at the Strategic Dialogue last August and are looking to deepen our economic collaboration."  LINK

Don961:  Mazhar Saleh: The high oil price of $ 75 could solve the budget deficit

Wednesday 17th February 2021

Baghdad: Hazem Muhammad Habib and Shaima Rasheed 

The Finance Committee in the House of Representatives revealed that the decisions of the curfew due to the Corona pandemic will not affect the continuation of meetings and dialogues to resolve the budget file.

In conjunction with this, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, told Al-Sabah: “The break-even point or balance in the budget requires that the average price of an annual barrel of oil exported abroad be at least $ 75- $ 80 a barrel,” indicating that "At that point, the deficit gap will be closed completely, and the sources of borrowing to cover the budget deficit will be automatically canceled," he said.

He added that "the government is benefiting from the current high oil prices, which have reached more than what was written in the budget, especially with the country heading to closure again," stressing that "this will lead to strengthening the country's financial leverage to face the problems of social need."

For his part, the reporter of the Parliamentary Finance Committee, Ahmed Al-Saffar, explained to “Al-Sabah” that “the curfew decision due to the Corona pandemic will not affect the continuation of meetings and dialogues to resolve the budget file and vote on it because it concerns the fate of a country and is supposed to be resolved.”

It is likely that «the end of this week will witness the vote on the budget in the House of Representatives after the Finance Committee completed it. It is awaiting the results of the region’s delegation’s meetings to prepare the text for the region’s share in the budget». 

Al-Saffar pointed out that "negotiations are continuing between Baghdad and the regional delegation to make changes to the government text in Article (11), and in the event that solutions are reached, matters will be resolved and the budget will be voted on."   LINK

MilitiaMan Late Tuesday Night "All Support The Move" 2-16-2021

KTFA:

MilitiaMan: I am sure that this (see articles below)  and recent posts today, collectively support that at move to the private sector is upon Iraq.. If not disaster looms..

We see that the dollar auctions are not the same as they were in the past and now there are calls now for them to cease abroad as well, imo.. That is powerful.

0 $ - Auctions, means to me a rate change is coming to offset the liquidity needed to run the country with new Dinar.. Fairly sure that is the plan and the world knows it.. As in the G7, UST, IMF, WG, WTO, BUNA, SWIFT, etc.. All support the move and even a digital one.

Not like Bit Coin, imo.. Just at a platform level, etc..   Even note that they are all involved in the architecture of the larger plan.. .. imo.. .. ~  MM

Punishment: Dollar speculation with corrupt banks cost the state a trillion dinars a month  LINK

Al-Nusiri calls on the government to preserve hard currency and prevent its leakage to the outside LINK

An economist warns of a decline in the citizen's purchasing power as the dollar’s ​​exchange rate continues to rise  LINK

MilitiaMan:  This is a long read, but the take away is that the point is clear.

With a cheap dinar, political amateurs want in the name of economic reform ... lethality to people, the economy and the state ?!  LINK

This opinion piece is an add on to what we already know. We have heard it from the IMF, the CBI, etc..  Devaluation is a killer.. It is not a progressive move.

It has it's place, unfortunately to those now that have to bare the short lived change is crushing. The plan was to get more currency off the streets and out from under mattresses.. Sadly, not unlike our own country, the little guy gets hurt.

We only hope the pain they suffer has gains in retrun in the long run in the form of Purchasing Power. The cross to bear is on Kahdimi, Salih, Halbousi as being in command now to fix things, and or all those politicians that raped the country in the past. Not giving an olive branch to the citizens and pronto, is a very explosive road to travel.. imo.. 

An excuse they use is about sensitivity, it is one that suggests they have a new exchange rate that is to be exposed, yet can not, just yet.

They even go on to suggest by an opinion; a historical era change in rate is / may be warranted. The latter era rate change is nothing new to anyone. In my view? It is the least the Government can do.. They will do it or if they do not? The may regret it quite quickly.

Anything less now may be considered as a failure. Yes, FAILURE... They need to revive markets and get to the private sector.. The timing with the digital world on a level playing field is knocking at the door, it must not be missed!!! .. imo ~ MM

 “A statement by the Ministry of Finance stated that it is fully aware that there are a number of supportive measures that must be taken to increase the positive effects of adjusting the exchange rate, but it has not been able to do so publicly due to the sensitivity of the issue”

: “It is difficult to restore the exchange rate to its previous state ... and that the financial markets will stabilize after the budget is passed ... and the formal adoption of the new exchange rate will remove concerns and revive the markets.”

KTFA Members "Tuesday News" 2-16-2021

KTFA:

Sandman:  Iraqi government to begin implementation phase of the White Paper for Economic Reform

“the Iraq Economic Contact Group (IECG) whose mission is to provide the support needed for the economic reform process in Iraq within the framework of the White Paper.

The IECG includes, in addition to Iraq, the G7 group of industrialised countries, the World Bank, the International Monetary Fund, and the European Union.”

https://gds.gov.iq/iraqi-government-to-begin-implementation-phase-of-the-white-paper-for-economic-reform/

Samson:  Punishment: Dollar speculation with corrupt banks cost the state a trillion dinars a month

13:16 - 16/02/2021
Member of the Parliamentary Legal Committee, Hussein Al-Oqabi, revealed, on Tuesday, that Iraq lost a trillion dinars as a result of speculations adopted by corrupt private banks after the conflicting news about the dollar’s ​​prices, indicating that the only solution is to return the dollar to its current price.

"We call on the judiciary and the public prosecutor to open a file regarding Iraq's loss of about one trillion dinars, one month after the leaks of raising the dollar ahead of its time by corrupt banks," Al-Aqabi said in a statement to Al- Maouma.

He added that "the currency auction and oil licensing rounds contain great suspicions of corruption and annually cost the state $ 15 billion, and the government must cancel it."

Al-Aqabi explained that "the current trend is towards forming a political bloc that mobilizes in order to restore the unfair decision against the Iraqi economy to raise the price of the dollar and return it to its previous era."   LINK

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Don961:  In the video, dozens of people demonstrate to demand a reduction in the dollar exchange rate

Posted 18 hours ago

News source / Alsumaria channel

Dozens of earners and office owners demonstrated in a beautiful Alwa in Baghdad to demand a reduction in the dollar exchange rate against the dinar to restore market stability.

The high exchange rate of the dollar against the Iraqi dinar reflected negatively on all market joints, especially those with limited income and importers of agricultural crops in a beautiful aloe who protested on this basis.

The agricultural crops market in Jamila suffers from being dumped by the importer, which has severely affected the local produce and farmers' crops.

Consequently, the wheel of agriculture, industry and trade faces a number of challenges, the most prominent of which is the failure of the concerned authorities to pay attention to activating the private sector and opening the border crossings wide open to foreign countries.  LINK

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Samson:  Iraq takes a series of decisions to "reform the economic and financial situation"

16th February, 2021

The Iraqi Council of Ministers decided to form the Supreme Committee for Reform of the requirements for implementing the "white paper" program, related to the economic and financial reform project in the country.

A statement by the Iraqi Ministry of Finance stated, "The committee is headed by the Prime Minister and includes in its membership all the ministers of finance (two representatives), planning and oil, the Secretary General of the Council of Ministers, the Governor of the Central Bank, the Executive Director of the Supreme Committee for Reform (a rapporteur), the advisor to the prime minister for strategic affairs and the head of the legal department In the General Secretariat of the Council of Ministers and the Prime Minister’s Adviser for Economic Affairs, in addition to two experts nominated by the Prime Minister and a representative of each of the two international organizations (the International Contact Group and the World Bank Group) as observers, without either of them having the right to vote.

Based on the decision, the Supreme Committee for Reform undertakes the following tasks:

Firstly:

1- Supervising the implementation of the reform program and the projects it consists of, according to the plans and timetables approved by the Supreme Committee for Reform, including adding, deleting or amending new projects.

2- Ensuring the availability of administrative and financing approvals in a timely manner during implementation and taking the necessary measures to overcome emerging obstacles.

3- Coordinating the work of the various bodies responsible for implementation and support, defining the duties of each of them, and achieving integration between them.

4- Monitoring good performance and applying accountability according to the law.

5- Submit periodic reports on the progress of the reform program to the Council of Ministers.

Secondly:

1- The Cabinet Resolution (18 of 2020) is repealed and the Supreme Committee for Reform replaces the Emergency Cell for Financial Reform established pursuant to it.

2- Meetings of the Supreme Committee for Reform are held at the invitation of the President or his deputy, with the approval of the President and in the presence of at least half of its members, including the Chairman or his deputy, in the absence of the Chairman, and decisions are taken by the majority of the attendees, including the Chair.

3- The committee meetings are at least quarterly.

4- The Supreme Committee for Reform has an executive director named by the Prime Minister, who is directly related to him and authorizes the necessary powers to implement the committee’s decisions and recommendations and achieve its goals and is tasked with following up the implementation of its decisions and recommendations and conducting its daily affairs under the supervision of its president.

5 - The Supreme Committee for Reform to form work teams or sub-committees to carry out specific tasks and to delegate the necessary powers to achieve its goals and facilitate its work.

6- The Supreme Committee may host whom it deems appropriate to attend its meetings, in order to fulfill its duties.

7 - The Prime Minister authorizes the powers of the Council of Ministers for the work of the Supreme Committee for Reform.

Third:

The formation of a cell called (Reform Management Cell) headed by the Executive Director of the Supreme Committee for Reform, to be based in the Prime Minister’s office and undertake the following tasks:

1- Executive management of the entire reform program under the supervision of the Supreme Committee for Reform.

2- Providing support to the officials of the reform program projects and the relevant executive teams, to improve performance and confirm the selection of the best operational paths to achieve the set goals.

3- Enhancing communication between project officials and work teams on matters pertaining to each project and coordinating interconnectedness between different projects within the reform program to enhance complementarity and synchronization in implementation.

4- Dealing with developments directly, first level, for reporting and solving problems.

5- Following up the implementation of basic activities and evaluating performance with an independent professional evaluation and submitting periodic reports to the Supreme Reform Committee, including reporting on the level of work progress, obstacles, anticipated risks and suggested solutions.

6- Watching in determining the procedures required of the project official in the event of delay in implementation or deviation from the correct path.

7- Following up on the officials of the reform program projects and holding them accountable in case of delay in achieving the goals approved within the approved timetable.

8- Any additional tasks assigned to the cell by the Supreme Committee for Reform.

Fourthly:

The executive director of the Supreme Committee for Reform has the authority to contract with experts and executives without pay and has the authority to duly contract for a fee with the approval of the Supreme Committee for Reform.

Fifthly:

All government agencies are obligated to give the reform program priority, cooperate and coordinate between them and the reform management cell and submit the required reports and data within the specified time period, including naming an official whose rank is not less than a general director for each project and allocating the work teams and human and material resources required to ensure the progress of the reform program according to the approved plans.  LINK

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Samson:  Among them is the absence of members ... a number of reasons that hinder parliamentary integrity

15th February, 2021

A member of the Parliamentary Integrity Committee revealed, on Monday, a number of reasons for the committee's failure to perform its duties, including the absence of its members, despite the rampant corruption in the country.

Committee member Jamal Muhammad told Shafaq News, "The Corona pandemic and the change of the government cabinet have caused confusion and disrupted the work of the committee, in addition to the constant absence of committee members and the lack of adequate legal quorum over the past months." He pointed out that "the current committee did not summon or question any executive official in the current government until now."

Muhammad revealed that he had submitted a formal application to join the Parliamentary Agriculture Committee, as he was not convinced of the tasks and role of the current Integrity Committee in Parliament. He added that political pressures and other circumstances beyond the will of the representatives disrupted and weakened most of the current parliament committees. 

Iraq is among the most corrupt countries in the world, according to Transparency International's index over the past years.

Corruption, along with security tensions, are two of the main reasons successive governments fail to improve the country's conditions, despite the large financial revenues from the sale of oil.    LINK

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Samson:  Sentencing to five years imprisonment for the former governor of Nineveh, Nawfal Al-Akoub

16th February, 2021

The Central Anti-Corruption Criminal Court at the Presidency of the Baghdad Appeals Court Al-Karkh Federal issued two judgments against the former governor of Nineveh, Nawfal Hammadi Al-Sultan, for the crime of introducing fake projects in the governorate.

The Media Center of the Supreme Judicial Council said, "The Central Anti-Corruption Criminal Court considered two calls for the former Nineveh Governor Nawfal Hammadi Al-Sultan and issued two judgments against him. The first is severe imprisonment for a period of three years, and the second is severe imprisonment for two years while giving the right to Nineveh governorate to claim compensation in accordance with the provisions of Article 340 of the Law. Iraqi sanctions."

He added that "the convict was criminalized for mock projects in cleaning and rehabilitating buildings in Nineveh Governorate for the period from 2017 to 2019."  LINK

Samson:  Al-Nusiri calls on the government to preserve hard currency and prevent its leakage to the outside

16th February, 2021

The economic and banking advisor, Samir Al-Nasiri, confirmed, on Tuesday, that hard currency in Iraq is still subject to leakage outside the country and called on the government and its specialized economic institutions to take measures, mechanisms, and economic, financial and monetary policies.

Al-Nusiri said in an interview with Al-Eqtisad News, that the foreign currency will not return due to unplanned and uncontrolled imports of consumer and unnecessary goods and goods from poor origins and outside the Iraqi standard specifications, while putting forward a set of proposals that would preserve the hard currency that Iraq needs in his current crisis he is going through.

He added that Iraq since 2003 until now has not stimulated and activated the productive sectors such as industry, agriculture, energy and tourism, and the local product, which is the basis for determining imports, has not been supported, indicating that import is a complement to local production and not a substitute for it, but after the opening of borders and markets and the entry of poor imported materials at prices. Low compared to the local product, due to the insecurity of raw materials and government support, which led to the exit of hard currency, mainly through imports of the private sector. 

Al-Nusiri stated that the best solution to preserve hard currency is for the government to support local production and activate the laws to protect the local product and protect the consumer, which are laws that have been on the shelves for years and have not been activated, stressing the importance of providing raw materials and electricity to the factories, structuring government factories and engaging the private sector. In its management. 

He continued that Iraq without local products that match the importer cannot maintain its hard currency as required, pointing to the need for the government to address the structural imbalance in the economy, activate the productive sectors, and address the deficit in non-oil revenue and the deficit in the balance of payments and the trade balance.

 "We are a country that does not have a clear economic approach, and the private sector has not been involved in making economic decisions, which requires and must be supported by the government," Al-Nusairi said.  LINK

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Samson:  The Lebanese government is close to signing a trade exchange agreement with Iraq

16th February, 2021

A Lebanese newspaper revealed, on Tuesday, that the government in Beirut is preparing to sign a trade exchange agreement with Iraq, according to which Lebanon will receive 500 thousand tons of crude oil for a year in exchange for payment of its value in the form of medical goods, medicines and consulting services

The Lebanese Al-Akhbar newspaper, quoting private sources, stated that the Lebanese government is working to finalize the draft agreement, to be followed by the relevant Lebanese ministers heading to Iraq to sign it

According to the newspaper, importing oil from Iraq comes after closing all international doors to Lebanon and the siege imposed on it. It will save Lebanon from darkness after the end of the contract with Sonatrach, even if the quantities will be less than what is required

The main problem was that Iraqi fuel did not conform to the specifications adopted in Lebanon, but it was agreed to transfer it in Iraq or barter it through an Iraqi company for fuel that matches the specifications with a deferred payment mechanism, for a period of at least 6 months   LINK

KTFA Monday Night CC with Frank26 " The New Exchange Rate" 2-15-2021

KTFA:

Monday Night CC with Frank26 and Team

Feb. 15, 2021

2-15-21.....THE NEW EXCHANGE RATE

This video is in Frank’s and Team’s opinions.

Frank26: It is impossible for Iraq to go digital Internationally unless the rate has risen..(see article below) In this article they say they have enough to back up their hard currency and their digital currency.

Plus a Special Report from Walkingstick…and Team MilitiaMan, Petra and Delta

PLAYBACK IS: 605.313.5163 PIN: 156996#

What Frank’s suit color’s mean…. FRANKS SUIT COLORS FOR CC'S..... WHITE = NEW INFO…. SILVER = INTEL FROZEN…. RED= HIGH ALERT… PURPLE=GUEST WITH US…. BLUE = AIR FORCE…. BLACK = GROUND/FF’S…. GREEN= MR OR FAB 4 ... GOLD = CHANGE

https://www.youtube.com/watch?v=KtkVW5BGgHA

Samson:  Is there a threat to hard currency reserves? The central bank explains

14th February, 2021

The Central Bank of Iraq ruled out, on Sunday, the existence of a threat to hard currency reserves as a result of borrowing, indicating that the oil market recovery maximizes the reserve.

The Director General of the Accounting Department at the Central Bank, Ihssan Shamran, said, according to the official agency, that "the dollar reserve of the Central Bank is not directly affected by the borrowings that the Ministry of Finance makes from banks," noting that "its impact is indirect and limited."

He pointed out, "The Central Bank monitors and ensures the safety of Iraqi dinars that are handed over to traders to buy dollars for fear that their sources are unknown or related to money laundering crimes, after which the dollar is delivered."

He explained that "the market now feels a little relaxed (Having had time get over the shock from it. imo ~ MM) after changing the exchange rate, which contributed to reducing the import process and creating competition between Iraqi and foreign goods," noting that "changing the exchange rate  (Again, imo. ~ MM) will help the national product in marketing its goods after the imported goods have become high in value (Expensive due to devaluation, imo ~ MM) by about 22%."

(22% of the value of the IQD was lost, hence products went up in price and inflationary event. Not good for the Citizens and against the White Papers and the IMF.. imo ~ MM)

He pointed out that "the change in the exchange rate made by the Central Bank in favor of supporting the national product against the importer." He continued that "the recovery of the oil market would maximize the hard currency needs and reduce the deficit in the general budget for 2021, noting that the dollars collected from the oil sales differences will strengthen the foreign operation reserves of the central bank, and this will also reduce the pressure on the bank’s reserves of currency."     LINK

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MilitiaMan:  What happens when exchange rate decreases?

a. If the dollar (dinar) depreciates (the exchange rate falls), the relative price of domestic goods and services falls while the relative price of foreign goods and services increases. 1. The change in relative prices will increase U.S. (Iraq) exports and decrease its imports.

The exchange rate has an effect on the trade surplus or deficit, which in turn affects the exchange rate, and so on. In general, however, a weaker domestic currency stimulates exports and makes imports more expensive. Conversely, a strong domestic currency hampers exports and makes imports cheaper.Mar 20, 2020

How does currency devaluation affect imports and exports?

First, depreciation (devaluation) of currency increases the volume of exports and reduces the volume of imports, both of which have a favourable effect on the balance of trade, that is, they will lower the trade deficit or increase the trade surplus.

MilitiaMan:  Emphasis is mine to (Iraq)...~ MM

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Is it better if the exchange rate is higher or lower?

A falling exchange rate can be beneficial if the economy is uncompetitive and stuck in a recession. A devaluation helps to increased demand for exports and create jobs. ... However, in a boom, a devaluation could lead to inflation. Also, a devaluation does reduce living standards as imports become more expensive. Sep 10, 2019
IMF per Article IV Consulatation:
Directors emphasized that reducing fiscal imbalances is critical to ensuring fiscal and debt sustainability. They welcomed the authorities’ planned fiscal reforms in the “White Paper” and encouraged their careful prioritization and swift implementation while minimizing the impact on the vulnerable. To create room for the much-needed reconstruction and social safety nets, Directors highlighted the importance of strengthening public finances.

Directors concurred that the recent exchange rate adjustment would help reduce external imbalances and preserve foreign exchange reserves. They underscored that a strong fiscal framework remains critical to ensuring the credibility of the "new exchange rate peg" as well as minimizing future need for monetary financing of the budget. Directors also saw need for further monetary policy measures by the "central bank to contain inflation."

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"The price of the dollar will remain as it is now until the "coming of another budget", "whether supplemental"

(Highly likely, imo ~ MM) or the 2022 budget ( Goinig out that far to 2022 is inflationary, not going to happen, imo ~ MM), then it will be possible to change the price if the government has a large abundancethat helps to overcome the expenditures of budget pressure.
LINK

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https://www.imf.org/en/News/Articles/2021/02/11/pr2137-iraq-imf-executive-board-concludes-2020-article-iv-consultation?cid=em-COM-123-42639

MilitiaMan:  The Central Bank is not lying about what they are saying at present nor would they, but, keep in mind what they are to do in the short term will have another effect, as well other than just stimulating job creation, opening doors to investors, etc.. Once the playing field is leveled (digitized) within the region and globally, and the IQD exchange rate becomes an international one the differential in value pricing of the IQD will be a mute point in regard to the above, imo. As the introduction of the new rate will be treated vastly different than a program rate. imo. Not to say they will not have to defend the rate to contain inflation while still be competitive in the markets of the region, etc.. ~ MM

So, if we keep in mind it is not the CBI's job to lie to anyone and it is not their job to hold our hands along the way through the reform process, but it is their job to inform the world with reasonable ad accurate data. A requirement of international standards. Now also keep in mind they muddy waters when doing so. It takes a keen eye and an open mind to the larger picture to glean the wheat from the chaff. However, in other cases there is specific data on reform issues.. Ones that say there is interconnectedness, integration and implementation.~ MM

"３. ‌ Enhancing communication between project officials and work teams on matters pertaining to each project, and coordinating the interconnectedness of the various projects within the reform program with the aim of enhancing integration and synchronization in implementation."..~ Deepwoods post 50 Feb11

MilitiaMan:  That there statement is data that is supporting a new process within the White Papers in regard to reform shows change is coming. Change that is not to harm the vulnerable!!. ~ MM

There is also pressure from neighboring countries and one to note is Kuwait.. Kuwait just differed debt payments for reparation's again. They do this at a time now while under scrutiny with respect to their currency peg. So, think about it, with Iraq ready to change their currency again, those that hold the Dinar will rise with the tide. I'll bet the deferral, was well orchestrated.. By design and timed accordingly.. Good things this way come.. imo ~ MM

https://www.bloomberg.com/news/articles/2021-02-11/kuwait-currency-peg-in-spotlight-with-nation-unable-to-borrow

He added, "The government wanted to put the parliament in front of a fait accompli, which is fixing the price of the Iraqi dinar at a value of 1450 against the dollar, which is a decision that does not carry any economic justification." In the local market. ” ~ post 50 Deepwoods Feb 11

The economic expert, Wissam Al-Tamimi, believed, earlier, that there is no justification for keeping the dollar high in the local market, pointing out that the siege of the people must end before the street explodes due to mishandling of the citizen's pension."

Samson:  Iraqi government to begin implementation phase of the White Paper for Economic Reform

15th February, 2021

The Iraqi government is preparing to begin the implementation phase of its reform programme known as the White Paper for Economic Reform.

This phase will focus on the implementation mechanisms and on the fulfilment of the objectives and the vision outlined by the White Paper.

The implementation phase consists of:

Putting in place governance, oversight, monitoring and evaluation mechanisms to ensure that the reform process is administrated and managed effectively under the direction and guidance of strong and competent leadership which will have a direct link to the Prime Minister, with the aim of equipping the implementation team with the necessary authority to carry out the reform programme, providing vigorous oversight of the implementation process, and ensuring coordination between different governmental institutions

Translating the vision of the White Paper for Economic Reform into a practical programme for delivering 64 projects and for ensuring their implementation in an integrated and coherent manner by specifying detailed procedures for each project, setting a specific timeline for progress and identifying the state entity which will be responsible for carrying out each project

The Iraqi government adopted the White Paper for Economic Reform prepared by the Crisis Cell for Financial and Fiscal Reform in October 2020.

The White Paper is a comprehensive programme that sets out a clear roadmap to reform the Iraqi economy and address the accumulated, decades-old serious challenges that confront it.

The White Paper identified two overarching strategic objectives. The first is to initiate an immediate reform programme to address the budget deficit to create a fiscal space to give time for the process of implementing the other wider reforms over the medium term.

The second objective is to put the economy and the federal budget on a sustainable path, after which Iraqis can decide and choose the economic direction of the country.

The White Paper anticipates that the short and medium-term objectives and associated reforms will require between 3 to 5 years to implement.

The White Paper for Economic reform enjoys the support of the international community as reflected by the establishment of the Iraq Economic Contact Group (IECG) whose mission is to provide the support needed for the economic reform process in Iraq within the framework of the White Paper. The IECG includes, in addition to Iraq, the G7 group of industrialised countries, the World Bank, the International Monetary Fund, and the European Union.

https://twitter.com/IraqiGovt/status/1361314763255472129    LINK

Cleitus:  Can we say HUGE?

MilitiaMan and KTFA Members Monday PM 2-15-2021

KTFA;

Ross: So the obvious question is how many months or years will that take?  I don't see discussions of a cashless society in American and I suspect a lot of people would be resistant and there would IMO have to be a major "education" push to overcome resistance.   

Also why spend the money to produce the NSCN's and the bank training if everything is going to be digital ?  

Clearly these things are above my pay schedule and understanding.  My simplistic thought that the White Papers and the 2021 Budget would produce a new rate that would benefit the populace seems misplaced.  Very discouraged. 

Mr. Frank mentioned that whenever the RI occurred at either the beginning, middle or end of the year... Well even though it can be back dated we clearly or not at the beginning so we now looking for the July 1st timeframe? 

Thinking back it does seem that the natives were expecting a change in the near coming days and not the distant coming days and have not gone ballistic with demonstrations even with their loss of purchasing power.  Seem to recall seeing lots of emails late last year to the CBI from citizens wanting the 3 zero's dropped.  Further with the secret deal with Iran...how long can they be held at bay with some tantalizing carrot re the RI if it takes months and months to get there?   Really confused  

MilitiaMan:  That is not an obvious question in my opinion on how many months or years will that take. The CBI spent money on new small category notes for the next phase which is to be going into an international venue with an IMF Article 8 Compliant Currency. I recall video of them destroying good quality triple zero notes too.

They didn't ever say they were only to be digital and have no cash. They are to be come a society with less cash.. No different than we here in the USA use less cash. A swipe here and a swipe there is cash less.. 

The recalculating assets, incomes streams from oil, border crossings, tourism, fresh new liquid natural gas income from halting its flaring, agriculture, mineral extraction, etc., all play a roll in the valuation process of the country and her currency. The budget needs the rate not the other way around. 

The IMF said there would be a change the rate in the fiscal year of 2020 and they did one on 12/20/2020 and then said to the effect that they may/will also do it again in early 2021. Well sorry, just because the first month is over doesn't mean within the first quarter is over yet, which is and can be still considered as being early 2021, imo.. The suggesting of reaching out to July is unfounded in my view, as I see nothing to support that. If you have support for it, please share it with us..

To the point of the demonstrations, they are in a pressure keg.. imo. See below Al-Tamimi comments on the matter. "

He added, "The government wanted to put the parliament in front of a fait accompli, which is fixing the price of the Iraqi dinar at a value of 1450 against the dollar, which is a decision that does not carry any economic justification." In the local market. ”

The economic expert, Wissam Al-Tamimi, believed, earlier, that there is no justification for keeping the dollar high in the local market, pointing out that the siege of the people must end before the street explodes due to mishandling of the citizen's pension.

MilitiaMan:  The street is aware of the situation and so is the government. With all the interconnectivity that we read about, we can see that going to a digital economy is a complex project. It was not started weeks or days or even months ago. It has been in the works for years.

Now based of the data we have with the likes of the BUNA platform for digital currency  settlements and clearing, CBI having a new state of the art digital enrollment financial system in place, the SWIFT System / China Joint Venture in digital Yuan and along with the USD via JP Morgan clearing the USD digitally within the BUNA system tells me this is not only about Iraq and clearly hasn't been.

So all the poo pooing about Iraq takes for ever, may be because they too have had things in place to be interconnected with the world digitally.. The platforms are tested and apparently in place now. Even today we see that Iraq is calling the Chinese to get started building schools.

To you last about Iran and the deal Kahdimi has sorted out says nothing about there are months away from and RI, that seems to be your projections, that from the links I will provide will show there is support to the contrary.

 The White Papers are fully in play, the timing is unknown to us. That is beyond our pay grades be sure. But a time frame is in the cards.. I hope this helps you and others to see things in a better and or at least a more positive perspective. I sure have one.. Kind regards .~ MM 

THE ARAB MONETARY FUND ANNOUNCES FULL LIVE OPERATIONS OF BUNA

https://www.amf.org.ae/en/content/arab-monetary-fund-announces-full-live-operations-buna 

AMF appointing J.P. Morgan to serve as settlement bank for US Dollar in Buna payment system

https://www.zawya.com/mena/en/press-releases/story/AMF_appointing_JP_Morgan_to_serve_as_settlement_bank_for_US_Dollar_in_Buna_payment_system-ZAWYA20210126053315/

SWIFT sets up JV with China's central bank

https://www.reuters.com/article/china-swift-pboc/swift-sets-up-jv-with-chinas-central-bank-idUSL1N2KA0AK
Arab Monetary Fund selects Refinitiv as compliance provider for Buna, the first cross-border payment system in the Arab region

Arab Monetary Fund selects Refinitiv as compliance provider for Buna, the first cross-border payment system in the Arab region

The risk management of payments and digital transactions has become more challenging following the COVID-19 outbreak. It is critical for Arab financial institutions to deploy sound compliance programs, enhance efficiency, and ensure accuracy of customer due diligence. The adoption of World-Check by Buna will help promote a regional due diligence culture and raise awareness on the significance of technology systems and data integration to help solve anti-money laundering challenges.

Refinitiv offers comprehensive, timely, and trusted information to help customers manage regulatory compliance, enterprise risk and financial crime. Its leading products include World-Check, Qual-ID and its recently expanded Enhanced Due Diligence service.

https://www.refinitiv.com/en/media-center/press-releases/2020/november/arab-monetary-fund-selects-refinitiv-as-compliance-provider-for-buna-the-first-cross-border-payment-system-in-the-arab-region

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Samson:  Reza Pahlavi: Iraqi misery is caused by Iran

14th February, 2021

The former Crown Prince of the Iranian Shah's regime, Reza Pahlavi, said that the Iranian influence in Iraq has made the population of this country feel miserable.

The statements of Reza Pahlavi, the son of the last Shah of Iran, came in an interview with the newspaper "Israel Hayom" Sunday, and mainly criticized the idea of ​​the possibility of US President Joe Biden's administration reaching an agreement with Iran on its nuclear program, considering it a mistake because it is based on the assumption that the current regime will change his behavior.

And Pahlavi considered the best solution, in his opinion, for the Americans, the peoples of the region and the Iranian people, through "supporting Iran's struggle for freedom and democracy." He added that the Iranian regime will not change its behavior. He noted that many Iranian activists have sent a message to Biden regarding the planned return to the nuclear deal. And he considered that through the economic benefits of the agreement, the Iranian regime "has taken control of three Arab capitals."

Pahlavi explained that "in countries like Iraq and Lebanon, where civilians fear militias like Hezbollah, the economic devastation led to demonstrations against the influences of the Islamic Republic." Although he stressed that there are suspicions that Iran is only months away from possessing a nuclear weapon, Pahlavi considered that Iran "does not need it altogether because it has the ability to weave chaos in the region."

Pahlavi expressed his support for the Abraham accords between Israel and Arab countries, and compared the opportunities that were opened to the citizens of these countries, and "the suffering and misery of the resistance axis countries, Iran, Iraq, Lebanon, Yemen and Syria." He indicated that the Iranian regime poses a threat to the countries of the Middle East that are trying to undermine their sovereignty with the help of its militias.

As long as the Islamic revolution is in power in Iran, he said, these countries will never achieve normalization of relations with Israel, considering that the Iranian people have a complete desire for peace with Israel and with all countries in the region. Pahlavi concluded by saying that he "does not doubt" that the current regime in Tehran will soon fall, and expressed his hope to visit Israel. LINK

Samson:  Iraq is at the Security Council table tomorrow

02/15/2021 13:18:10

This week, members of the United Nations Security Council will have a number of discussions, as the Technical Training Center will present on Tuesday a briefing and consultations on the United Nations Assistance Mission for Iraq.

Next Wednesday, the members of the Council will witness a high-level open discussion on the WED vocational training program, which focuses on equitable access to Corona vaccines in contexts affected by conflict and insecurity, and the Technical Training Center will present discussions Thursday on the situation in Yemen

It is noteworthy that the United Kingdom will assume the presidency of the Security Council for next February, succeeding the presidency of the State of Tunisia to the Council during the month of January, and Britain focuses its discussion on climate change and the "Covid-19" pandemic, and many sessions address equal access to vaccines, Especially in conflict-affected areas   LINK

MilitiaMan and KTFA Members " A Requirement of International Standards" 2-14-2021

KTFA:

Samson: Is there a threat to hard currency reserves? The central bank explains

14th February, 2021

The Central Bank of Iraq ruled out, on Sunday, the existence of a threat to hard currency reserves as a result of borrowing, indicating that the oil market recovery maximizes the reserve.

The Director General of the Accounting Department at the Central Bank, Ihssan Shamran, said, according to the official agency, that "the dollar reserve of the Central Bank is not directly affected by the borrowings that the Ministry of Finance makes from banks," noting that "its impact is indirect and limited."

He pointed out, "The Central Bank monitors and ensures the safety of Iraqi dinars that are handed over to traders to buy dollars for fear that their sources are unknown or related to money laundering crimes, after which the dollar is delivered."

He explained that "the market now feels a little relaxed (Having had time get over the shock from it. imo ~ MM) after changing the exchange rate, which contributed to reducing the import process and creating competition between Iraqi and foreign goods," noting that "changing the exchange rate  (Again, imo. ~ MM) will help the national product in marketing its goods after the imported goods have become high in value (Expensive due to devaluation, imo ~ MM) by about 22%."

(22% of the value of the IQD was lost, hence products went up in price and inflationary event. Not good for the Citizens and against the White Papers and the IMF.. imo ~ MM)

He pointed out that "the change in the exchange rate made by the Central Bank in favor of supporting the national product against the importer." He continued that "the recovery of the oil market would maximize the hard currency needs and reduce the deficit in the general budget for 2021, noting that the dollars collected from the oil sales differences will strengthen the foreign operation reserves of the central bank, and this will also reduce the pressure on the bank’s reserves of currency."   LINK

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What happens when exchange rate decreases?

a. If the dollar (dinar) depreciates (the exchange rate falls), the relative price of domestic goods and services falls while the relative price of foreign goods and services increases. 1. The change in relative prices will increase U.S. (Iraq) exports and decrease its imports.

The exchange rate has an effect on the trade surplus or deficit, which in turn affects the exchange rate, and so on. In general, however, a weaker domestic currency stimulates exports and makes imports more expensive. Conversely, a strong domestic currency hampers exports and makes imports cheaper.Mar 20, 2020

How does currency devaluation affect imports and exports?

First, depreciation (devaluation) of currency increases the volume of exports and reduces the volume of imports, both of which have a favourable effect on the balance of trade, that is, they will lower the trade deficit or increase the trade surplus.

MilitiaMan:  Emphasis is mine to (Iraq)...~ MM

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Is it better if the exchange rate is higher or lower?

A falling exchange rate can be beneficial if the economy is uncompetitive and stuck in a recession. A devaluation helps to increased demand for exports and create jobs. ... However, in a boom, a devaluation could lead to inflation. Also, a devaluation does reduce living standards as imports become more expensive. Sep 10, 2019

IMF per Article IV Consulatation:

Directors emphasized that reducing fiscal imbalances is critical to ensuring fiscal and debt sustainability. They welcomed the authorities’ planned fiscal reforms in the “White Paper” and encouraged their careful prioritization and swift implementation while minimizing the impact on the vulnerable. To create room for the much-needed reconstruction and social safety nets, Directors highlighted the importance of strengthening public finances.

Directors concurred that the recent exchange rate adjustment would help reduce external imbalances and preserve foreign exchange reserves. They underscored that a strong fiscal framework remains critical to ensuring the credibility of the "new exchange rate peg" as well as minimizing future need for monetary financing of the budget. Directors also saw need for further monetary policy measures by the "central bank to contain inflation."

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"The price of the dollar will remain as it is now until the "coming of another budget", "whether supplemental"

(Highly likely, imo ~ MM) or the 2022 budget ( Goinig out that far to 2022 is inflationary, not going to happen, imo ~ MM), then it will be possible to change the price if the government has a large abundancethat helps to overcome the expenditures of budget pressure.

LINK

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https://www.imf.org/en/News/Articles/2021/02/11/pr2137-iraq-imf-executive-board-concludes-2020-article-iv-consultation?cid=em-COM-123-42639

MilitiaMan:  The Central Bank is not lying about what they are saying at present nor would they, but, keep in mind what they are to do in the short term will have another effect, as well other than just stimulating job creation, opening doors to investors, etc..

 Once the playing field is leveled (digitized) within the region and globally, and the IQD exchange rate becomes an international one the differential in value pricing of the IQD will be a mute point in regard to the above, imo.

As the introduction of the new rate will be treated vastly different than a program rate. imo. Not to say they will not have to defend the rate to contain inflation while still be competitive in the markets of the region, etc.. ~ MM

So, if we keep in mind it is not the CBI's job to lie to anyone and it is not their job to hold our hands along the way through the reform process, but it is their job to inform the world with reasonable and accurate data. A requirement of international standards.

 Now also keep in mind they muddy waters when doing so. It takes a keen eye and an open mind to the larger picture to glean the wheat from the chaff. However, in other cases there is specific data on reform issues.. Ones that say there is interconnectedness, integration and implementation.~ MM

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"３. ‌ Enhancing communication between project officials and work teams on matters pertaining to each project, and coordinating the interconnectedness of the various projects within the reform program with the aim of enhancing integration and synchronization in implementation."..~ Deepwoods post 50 Feb11

MilitiaMan:  That there statement is data that is supporting a new process within the White Papers in regard to reform shows change is coming. Change that is not to harm the vulnerable!!. ~ MM

There is also pressure from neighboring countries and one to note is Kuwait.. Kuwait just differed debt payments for reparation's again. They do this at a time now while under scrutiny with respect to their currency peg. So, think about it, with Iraq ready to change their currency again, those that hold the Dinar will rise with the tide. I'll bet the deferral, was well orchestrated.. By design and timed accordingly.. Good things this way come.. imo ~ MM

https://www.bloomberg.com/news/articles/2021-02-11/kuwait-currency-peg-in-spotlight-with-nation-unable-to-borrow

He added, "The government wanted to put the parliament in front of a fait accompli, which is fixing the price of the Iraqi dinar at a value of 1450 against the dollar, which is a decision that does not carry any economic justification." In the local market. ” ~ post 50 Deepwoods Feb 11

The economic expert, Wissam Al-Tamimi, believed, earlier, that there is no justification for keeping the dollar high in the local market, pointing out that the siege of the people must end before the street explodes due to mishandling of the citizen's pension." ~ post 50 Deepwoods Feb 11

Don961:  Representative economy: The US embassy intervened by changing the exchange rate of the dollar

08:42 - 14/02/2021 The information / Baghdad ..

The Parliamentary Economic and Investment Committee revealed, on Sunday, that the US embassy in Baghdad had interfered with changing the exchange rate of the dollar, which sparked a wave of popular discontent and affected the poor classes, returning the current US presence as an "occupation."

A member of the committee, MP Hamid al-Mousawi, said in an interview followed by / the information /, that "the American embassy in the capital, Baghdad, interfered with the economic paper that the government of Prime Minister Mustafa Al-Kazemi announced earlier."

Mousawi added, "The US embassy also intervened with the issue of changing the exchange rate of the dollar, which the government had recently approved."

"The current American presence is an occupation, in contrast to the House of Representatives decision, which stipulated the removal of all foreign forces, headed by the Americans," Moussawi, a deputy for the Al-Fateh Alliance, said. End / 25   LINK
  

MilitiaMan:  Sorry, but it wasn't the USA Embassy it was the IMF and the GOI.. But, they are not wrong in that the move harmed the vulnerable, which did work to get 3 zero notes from them while increasing inflation. If I was a citizen of Iraq the move would have ticked me off as it did them. This is a hit piece by Al Fateh to put the blame on the USA. Lets not forget that the State Law Coalition / Maliki the other day is in support of changing the exchange rate again. Just as the IMF has stated there would be another change in early 2021. ~ imo ~ MM

"
The Fatah Alliance included the Badr Organisation, the Al-Sadiqoun Bloc (the political wing of Asa'ib Ahl al-Haq, AAH), Kata'ib Hezbollah and Kata'ib al-Imam Ali, all key components of the Hashd. The Fatah Alliance agreed to run jointly with al-Abadi's Nasr al-Iraq (Victory of Iraq) list, but the agreement fell apart after only 24 hours, reportedly over Abadi's conditions.[11][12] The Badr Organisation, headed by Hadi Al-Amiri, was previously part of the ruling State of Law Coalition and announced their withdrawal from the Alliance in December 2017,[13][14] and won 22 seats.

Asa'ib Ahl al-Haq split from the Sadrist Movement in 2004.[15] It has also been one of the main Iraqi armed groups active in the Syrian Civil War.[16][17] They have received funding and training from Iran's Quds Force[18][19] and, like many Sadrists, are reported to have religious allegiance to the Iranian Grand Ayatollah Kazem al-Haeri.[20] AAH formed a political wing, called the Al-Sadiqoun Bloc, to contest the 2014 Iraqi parliamentary election, winning one seat."

Solorat:  I thought when I read that sounded a little weird blaming the USA. Imo