MilitiaMan and Petra "500 Banks-Leakage is Out" from KTFA 5-22-2021

KTFA:

FROM MM & PETRA:

MilitiaMan:  This is only in the May 20th article ...According to a central bank statement, “The Governor of the Central Bank of Iraq, Mustafa Ghaleb, held a meeting with the World Gold Council at their request,” indicating that “the meeting dealt with a number of issues, the most prominent of which was technical support and training files, in addition to discussing the increase in the foreign reserves of the Central Bank. It has been achieved after the implementation of recent reforms in the work of the bank and the banking sector.

Looks like things have been achieved… Increase in foreign reserves… After implementing recent reforms… Technical support and training.. That reeks of USA helping out!! Just like they said they would!!... I posted the data about the UST.. There was more from the UST today …. Can a plan have time frames?

Can 200 odd countries interlinking not need coordination to a very fine point?... Which central bank leads the pack?.... Which central bank calls the shots? Which central bank gives the go?...

Who is the largest stake holder in the IMF? BIS? WB?..... Who is talking to the world bankers? Community banks today even? They have all had a hand in the process..

This week suggests that the UST and major players are all on a level playing field.

500 bankers were schooled on compliance etc.. Does that mean the door is open? Have we seen th iSX delay?.. Have the citizens been paid salaries or just given advances?... Taxation Clearing.. Salaries… Documentary credits… Interconnectivity…

We will know when the playing field kicks off… Digital is instantaneous.. all boats rise with the tide.. SDR is over $1.44 today.. MilitiaMan

Petra:  All boats rise with the tide. Now that sounds familiar! LOL.. PETRA……….

Militiaman:  I have always maintained the longer it takes the more money we make.. lol… MilitiaMan……….

Petra:  Cha-Ching!.......PETRA………..

MilitiaMan:  SDR tide is rising.. just wait until the IQD is placed internationally!!.... MilitiaMan…

Petra:  And the impact it will make with the AAD and the AMF!!!... MM has laid it out pretty well. All the “cash” movement vehicles have been stalled…on purpose. Yes!!!!... PETRA………

MilitiaMan:  Petra yes, they have to interlink with perfection. The largest players left with the compliance data.. imo……. It is a level playing field that requires compliance… MilitiaMan……..

Petra: So MM, can I ask you a question?..….. “Could” the attendance of this last digital convention be one of the final steps required in “the process?”… PETRA…

MilitiaMan:  Sure…. It absolutely had to be done.. . 200 and then 300 more banks ? Yep… UST is talking not only globally but they are talking here at home. Leakage is out imo…. MilitiaMan…….

Petra:  Yes. And so close to each other. I believe Iraq and US made similar taxation announcements in the same 24 hours. IMO…. Coincidence. LOL.. PETRA……

MilitiaMan:  UST talking the same day as the Arab summit to USA National Bankers association and the community bankers as well means to me they are gearing for immediate economic growth… The UST even says so in their address… This is only in the May 20th article ...

According to a central bank statement, “The Governor of the Central Bank of Iraq, Mustafa Ghaleb, held a meeting with the World Gold Council at their request,” indicating that “the meeting dealt with a number of issues, the most prominent of which was technical support and training files, in addition to discussing the increase in the foreign reserves of the Central Bank. It has been achieved after the implementation of recent reforms in the work of the bank and the banking sector.

MilitiaMan…. They have the reserves and gold!! What that means is they announced they have what it takes!! Just as the Dutch disease paper suggests!!... MilitiaMan…

Petra:  Clear to me MM. a significant amount of “integrated” happenings between the US and Iraq… PETRA……

MilitiaMan:  It is more than that too. 500 bankers is globally.. your boat is about to float!! Managed yes!! But flair it will with help… Float… MilitiaMan……….

Petra:   Yes MM….like we said Long ago…it’s not all about Iraq. Maybe folks now have a better understanding… PETRA…………

MilitiaMan::  U.S. Department of the Treasury Office of Public Affairs Press Release:

 FOR IMMEDIATE RELEASE May 21, 2021 Contact: Alexandra LaManna; Press@Treasury.gov READOUT: Deputy Secretary of the Treasury Wally Adeyemo's Meeting with the Independent Community Bankers of America Board of Directors WASHINGTON –

Yesterday, Deputy Secretary of the Treasury Wally Adeyemo met with members of the Independent Community Bankers of America (ICBA) Board of Directors to discuss the key role of community banks in providing swift access to essential payments and needed capital for millions of people and businesses throughout the COVID-19 crisis and how Treasury and ICBA can work together to achieve a strong, equitable recovery moving forward.

The Deputy Secretary highlighted Treasury and ICBA's shared priority of financial inclusion and efforts to ensure that communities – especially rural communities and communities of color – across the country have access to capital and credit.

The Deputy Secretary highlighted Treasury and ICBA's shared priority of financial inclusion and efforts to ensure that communities – especially rural communities and communities of color – across the country have access to capital and credit… Financial inclusion… The UST is talking on the lines of what we have for years… MilitiaMan……

Petra:  Same as Iraq and GCC…. PETRA…….

MilitiaMan:  They ring the bell!! Eos… MilitiaMan……..

Petra:  Agreed. Time to ring the bell and get off the ride!!! IMO.. PETRA….

MilitiaMan:  No delay yet on the ISX.. Kurds are to show next week… MilitiaMan…..

Petra:  Love the sound of that…ISX + Kurds arrival…key indicators to watch for change… PETRA……

MilitiaMan:  Imo the education has been toward less cash.. digital... MilitiaMan……

Petra:  With the average demographic in Iraq, now younger than 40 as the largest demographic, IMO, NSCN’s will be secondary to the digital wallets... PETRA…….

MilitiaMan:  The remains of the reforms were imo outlined over the last couple weeks.. The level of central bankers who move the largest amounts of money interconnected is the largest in the world… . They were not there for elbow bumping!! Aside from deals made. They were there to get the facts and just of the do’s and don’t s as there are consequences.. MilitiaMan……..

Petra:  Sure MM. this thing will be global in impact. The world is moving digitally in a mad fast way. Hence the war on “non”… Central bank digital instruments… PETRA…..

MilitiaMan:  Digitization- Fintech- blockchain- all have responsibility and Interconnectivity and exposure!.. MilitiaMan……..

Petra:  And traceability, traceability, and no-nonsense….. And those who aren’t playing ball on the blockchain platform will be…left behind. IMO. Countries like Iraq, Vietnam, USA are ready. IMO…. PETRA…

MilitiaMan:  The conversation has been a good one. It should be studied. There has been so much evidence to support our views… That means all of our views are important…. MilitiaMan…….

MilitiaMan Thursday Night "Global Interconnection At and On a Global Scale"

KTFA:

Don961:  THE ARAB MONETARY FUND PUBLISHES A DOCUMENT ON “OPEN BANKING REGULATORY PRINCIPLES” IN THE FRAMEWORK OF THE ARAB REGIONAL FINTECH WORKING GROUP

 19th May, 2021

The document sheds light on the opportunities that open banking services offers to the financial and banking institutions customers

The regulatory requirements to initiate open banking services in the Arab countries

The importance of creating a stimulating environment to encourage innovation in open banking

The need to protect users of open banking and finance services and the environmental and social responsibilities within the framework of these services

The Arab Monetary Fund (AMF), in collaboration with the Arab Regional Fintech Working Group members, published today a document titled “Open Banking Regulatory Principles”, as part of the AMF ongoing efforts to support digital financial transformation in the Arab countries, which plays a major role in growing the level of financial inclusion and contributing to the development of innovative financial services.

The document highlights the benefits that open banking services may create for the financial and banking institutions customers, in terms of increased competition, lower costs, encouragement of innovation, and the generation of new business models and use cases.

The document, which was prepared by members of the Arab Regional Fintech Working, portrays a set of regulatory principles that enables the development of a solid and modern framework for regulating open banking services, in addition to providing information on open banking services systems in a number of markets.

The document aims as well to assist Arab central banks and supervisory authorities to coop with international best practices in terms of open finance and open banking operations and support the initiation and growth of these services in the Arab countries while mitigating the various associated risks.

The document introduces a set of regulatory principles, namely nine principles, covering the importance of enabling use cases prior to full-fledged launch of the open banking regulations, the need for planning for a regulatory mechanism that encourages regulated entities to take-up within set timelines. Also, enable permission-based access technologies prior to widespread adoption of Open API infrastructure in order to avoid delay innovation, and to drive the early adoption of industry standards on regulated entities and certification of Account Information Service Providers/ Payment Initiation Service Providers (PISP/AISPs). 

The principles also promote ensuring the adoption of robust data governance and protection frameworks by service providers and third parties, as well as requiring consumer protection and liability frameworks to be adopted across Open Banking ecosystems. Moreover, they recommended a phased approach in order to properly achieve the anticipated national strategic objectives and use cases and highlighted the different aspects of scope expansion and supervising non-bank service providers.

Within the same context, the document recommends the Arab supervisory authorities to take into account the importance of enabling innovation and activating use cases to allow consistent development of legislations, when designing frameworks for open banking operations, and encouraging early collaboration with service providers, to set the proper specifications and standards. This is along with a contingency plan for implementation delays including the availability of API infrastructure components, as well as ensuring robust protection for consumers of financial and banking services.

It worth mentioning that the document included number of Arab central banks’ experiences in developing open banking operations, foremostly the pioneering experience of the Central Bank of Bahrain, which launched its own open banking operations framework back in 2018. It also addresses the launch of a comprehensive framework for open banking operations by the Saudi Central Bank, and the efforts of the Central Bank of the United Arab Emirates.

On this occasion, His Excellency Dr. Abdulrahman Al Hamidy, Director General Chairman of the Board of Directors of the Arab Monetary Fund, praised the ongoing efforts of the Arab Regional Fintech Working Group in issuing guidelines aiming at contributing to the development of the Fintech industry in the Arab countries, pointing out the importance of this regulatory  document in serving as a guide to create an environment that stimulates the growth of these operations, supporting the financial inclusion and digital financial transformation in Arab countries, and creating additional opportunities for  sustainable development.

27 page report - You can download the report by clicking on the link

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MilitiaMan:  The above from the AMF comes off the last day of 300 Bankers representing 20 countries in the ME Region at the Arab Digitial Transformation Summit.

Here they talk about Financial Technology, Fin - Tech - A blockchain oriented technology. It is for transparency, a level playing field that has eyes on corruption. That is what Open Banking is about.

They have some very heavy hitters in those 20 countries. Saudi, United Arab Emirates, Bahrain, Abu Dahbi ,etc. Look at the talk from the UST today about global taxation.

They mention the G20, too. Then there is Iraq talking about the same thing!! TAXATION! Same day as the UST and the AMF all having had meetings on compliance, etc..

There are no coincidences in this anymore now were there any. What we are seeing is a global interconnection at and on a global scale.

The whole world is now about to have to deal with a level playing field with blockchain - fintech in respect to taxation.

The UST has been hard at and from the looks of the article they have global support. They start at 15% flat tax across they board. People don't like it they may raise it.. lol I'll bet that is why there is such heartened support.. lol

Putting this together now is all coordination at the highest levels. We talked about the BUNA system this last couple weeks and then the finish up of the Arab Digital Transformation Summit and boom! There is the ADIB system!!

Then look no further, the AMF published a statement, Iraq published a statement and as did the US Treasury.

All of this is oriented on a new digital transformation to level the playing field. Both Iraq and Viet Nam are to have similar managed float currency regimes. Fascinating this is all coming to the forefront by the largest financial entities in the world. Today! This is looking like they have things all ready to go now..

The "Dutch Disease"  and the GDP Data for Viet Nam with an upgrade to their credit rating by Moody's suggests that both countries reserves and economic circumstances may allow for the deletion of zeros for both.. We shall see.. imo ~ MM 

U.S. Department of the Treasury
Office of Public Affairs

 Press Release:   FOR IMMEDIATE RELEASE May 20, 2021

Contact:  Alexandra LaManna; Press@Treasury.gov

 READOUT: U.S. Department of the Treasury’s Office of Tax Policy Meetings

Over the last two days, leaders from the Office of Tax Policy at the U.S Department of the Treasury participated in meetings with the Steering Group of the Inclusive Framework on base erosion and profit shifting (BEPS) as part of the Organization for Economic Cooperation and Development (OECD) / G20 international tax negotiations. As part of those meetings, discussions on the global corporate minimum tax rate began in earnest.

Treasury expressed its belief that the international tax architecture must be stabilized, that the global playing field must be fair, and that we must create an environment in which countries work together to maintain our tax bases and ensure the global tax system is equitable and equipped to meet the needs of for the 21st century global economy.

It is imperative to work multilaterally to end the pressures of corporate tax competition and corporate tax base erosion. Treasury reiterated that with the global corporate minimum tax functionally set at zero today, there has been a race to the bottom on corporate taxes, undermining the United States’ and other countries’ ability to raise the revenue needed to make critical investments.

 Treasury made clear that a global corporate minimum tax rate would ensure the global economy thrives based on a more level playing field in the taxation of multinational corporations, and would spur innovation, growth, and prosperity while improving fairness for middle class and working people.

Treasury proposed to the Steering Group that that the global minimum tax rate should be at least 15%. Treasury underscored that 15% is a floor and that discussions should continue to be ambitious and push that rate higher.

Treasury was heartened by the positive reception to its proposals and the unprecedented progress being made towards establishing a global corporate minimum tax.

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The Director General of the General Tax Authority reveals the benefits of the digital system

20th May, 2021

The Director General of the General Tax Authority, Shaker Mahmoud Al-Zubaidi, revealed today, Thursday, the benefits of the digital system for Al-Arasat tax.

Al-Zubaidi said in a statement received by Alsumaria News, "A digital system for Al-Arasat tax will be implemented soon," indicating that "the tax will be archived to eliminate the paper system."

He added that "the benefit of the digital system is to end cases of tax evasion, preserve tax revenues and end cases of taxpayers extortion," noting that "the digital system that was linked with the real estate registration departments contributed to eliminating fraud, maximizing revenues and helping to collect taxes in the correct manner."

The digital system has ended bureaucratic procedures and facilitated administrative procedures," the statement stressed. And he added, "With direct follow-up by the Prime Minister and Minister of Finance, the digital system was implemented and met with wide approval and acceptance by the higher government agencies."

 He concluded by saying: "The digital system was applied in the largest branches Baghdad “Markaz’s Karkh tax - and Karrada branch tax” and after this impressive success that has been achieved, it will be implemented in 43 tax branches in the next few days.  LINK

State Bank of Vietnam Decree No. 70 (2014) takes the position that Vietnam’s exchange
rate regime is a “managed floating system that the State Bank of Vietnam defines on the basis of
a basket of currencies of countries that establish a cooperation of commerce, loaning, debt
repayment and investment with Vietnam, which conforms to macroeconomic objectives in each
period.”36

https://ustr.gov/sites/default/files/enforcement/301Investigations/Vietnam_Currency_301_Actionability_Report_Jan_15_21.pdf

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The Dutch Disease and Iraq’s Foreign Exchange Rate. By Dr. Zeki Fattah 

Therefore, it is high time now to adopt a flexible exchange rate for the Dinar vis-à-vis the US Dollar: i.e., raise it when its national reserve of foreign currencies is high, and lower it when the reserve is low; benefiting the country on the way up and on the way down. LINK

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ADIB launches Digital Banking Platform in Iraq

20th May, 2021

Abu Dhabi Islamic Bank (ADIB) has said it will strengthen its presence in Iraqi market by launching "ADIB Direct", a digital platform that meets the growing business demands in Iraq.

ADIB Direct is an intuitive digital banking platform that integrates a suite of corporate banking solutions into a single, streamlined interface. The platform offers cash management solutions, cashflow forecasting, and foreign exchange services.

Abdullah Al Shehhi, Head of International Banking Group at ADIB said:

"At ADIB, we believe we play an important role in supporting Iraq's local economy by providing businesses the banking services they need to help them thrive and achieve their financial goals.

Through ADIB Direct, we enable companies to efficiently manage their cash payments, liquidity, trade finance, supply chain and foreign exchange needs so they have more time to focus on their business."

LINK

MilitiaMan and KTFA Members The Digital Roll-O'ut" 5-19-2021

KTFA:

Samson:  Postponement of the visit of the Kurdish delegation to Baghdad

13:37 - 19/05/2021

A source in the Kurdistan Regional Government revealed, on Wednesday, the postponement of the visit of the regional government delegation to Baghdad, which was scheduled to take place tomorrow, Thursday.

The source said in a statement to "the information", that "the Kurdistan Regional Government has postponed the visit of its technical delegation to Baghdad, in order to complete the discussions on the mechanism for delivering oil."

He added that "there are differences with the oil companies operating in the Kurdistan region, and because of them, the implementation of the budget agreement has been postponed until now."

The source pointed out that "the Kurdish delegation will visit Baghdad next week with a delegation that includes 3 ministers and officials in the regional government to implement the budget agreement."  LINK

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Samson:  Kurdish delegation to visit Baghdad Wednesday

11:18 - 17/05/2021

Member of the Parliament of the Kurdistan Region, Othman Karim, confirmed, on Monday, that a Kurdish delegation will arrive in Baghdad  Wednesday, to discuss the latest technical developments regarding the budget agreement.

Karim said in a statement to "the information", "The delegation is likely to arrive in Baghdad next Wednesday and include a group of ministers and will meet with specialists in the federal government to understand the issue of the budget and the delivery of oil to Baghdad."

He added that "despite the vote on the region’s share in the budget, the Kurdistan’s share of the budget has not yet been sent due to lack of agreement on the technical points of the budget agreement, but overall, the issue is still complicated."

The Parliamentary Finance Committee confirmed, yesterday, Sunday, that the Kurdish delegation, which will visit Baghdad soon, will end the technical dispute between Baghdad and Erbil regarding oil prices. 

LINK

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MilitiaMan:  The mechanism is the exchange rate in my view. They want what everyone wants. The transformation digitally is on going with the Arab Summit taking place through tomorrow.

I suspect the Kurds got the cart before the camel and needed to hold off until now.

The industrialists are getting ready for the same thing. When Iraq has everyone on board and compliance ready, they'll jump start the reforms and fast, imo.

Look at the articles about massive amounts of materials needed. Steel, cement, rice, container ships full of items at the Port of Faw.

They are adding additional phases to the port to be able to handle the build out that is on the way. On the way. As in now there is no stopping it..

 In total over 500 bankers and central bankers are aware of this now. The digital roll out is the level playing field. It is the mechanism that will trigger a massive global change. imo 

So be at peace, as change is coming. The same day the Arab Summit started the UST had a chat too!! Get ready!!!  ~ MM

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Ross:  Thanks for the clarification and encouragement. 

This however was my favorite line:  Get ready!!!     

Lol the only way I could be more ready is to start sleeping at the front door of my bank.

MilitiaMan:  That might be a good idea.(ROTFL)

Samson:  Nechirvan Barzani discloses "significant" external support for Erbil and Baghdad to resolve their differences

19th May, 2021

The President of Kurdistan Region, Nechirvan Barzani said on Wednesday that there is "great" international support for Erbil and Baghdad in order to solve the differences and pending issues between them, stressing the need to achieve political stability in the country in order to eliminate ISIS in the disputed areas.

President Barzani said in a speech during the (Unity and Constitution) conference in Erbil, "We are going through a sensitive phase, which is the stage of the Iraqi elections, and all parties are trying to rearrange themselves." To overcome all problems in Baghdad.

Regarding the differences between Erbil and Baghdad, Barzani said: There is great political support for Baghdad and the region in addition to external support towards dealing with our problems with Iraq within the framework of the constitution, and for this we will continue our efforts.

The head of the region confirmed that the (UNAMI) mission in Iraq has played a positive role so far. In a letter to the United Nations, I requested, as the Kurdistan Region, to increase the role of its mission in addressing the differences between Baghdad and Erbil, from which we ultimately aim for the political stability of the country and without addressing the problems there will be no political stability. 

President Barzani went on to say that "the organization of ISIS in the so-called disputed areas is currently very effective and if we want to eliminate it, there must be political stability in the country."  

LINK

MilitiaMan:  Ya think? lol There is a Digital Summit going on through tomorrow. The mechanism that Baghdad and Erbil are to disclose is about to reshape the way they do things and in a big way.. imo

 The world is watching and reacting now. imo There would not be 500 global bankers and Central Bankers over a two to three week period discussing digital clearing and compliance. That does not get done with out massive logistics.. imo

We are in a good place.. By the way. The CBI didn't notify the Gazette prior to the devaluation.. Some food for thought.. ~ imo ~ MM

KTFA Members "News and Views" Monday PM 5-17-2021

KTFA:

Samson:  Saudi Arabia seeks to forgive Sudan of $ 4.5 billion in debt

17th May, 2021

Saudi Arabia is seeking to exempt Sudan from debts amounting to $ 4.5 billion, according to Bloomberg News, citing Sudan’s official TV

In a related context, the Vice President of the World Bank for Eastern and Southern Africa, Hafez Ghanem, revealed a grant to support Sudan in the amount of two billion dollars, according to the official Sudanese News Agency (SUNA)

This grant comes in addition to supporting the families program, combating the Corona pandemic, the energy sector, especially solar energy, and promoting the use of technology, according to Ghanem, who emphasized work to strengthen human capital in Sudan through the Bank and international partners

During his speech on Monday, at the Paris Conference to support the democratic transition in Sudan, he pointed to the positive effects of economic reforms on the development level in a short period of time, stressing that Sudan will achieve great opportunities and that it is rich with large livestock

He explained that the geographical location of Sudan qualifies it to reach regional markets, especially in the north, in addition to its huge potentials that will lead to creating an investment climate, and Hafiz called on the international community to continue supporting Sudan, stressing that the World Bank is working to enhance the investment environment in Sudan

"We are looking forward to more work with the government," he said, adding that the partnership with the World Bank is very important. He explained that Sudan has regained its full membership in the World Bank, calling on investors to take advantage of the opportunities present and available in Sudan   LINK

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Samson:  Setting a new date for the World Economic Forum

05/17/2021 17:43:38

The World Economic Forum announced today, Monday, that its annual meeting, "Davos", has been postponed and moved from Singapore in light of the emerging Corona virus crisis.

The World Economic Forum said in a statement that the next annual meeting will be in the first half of next year 2022, with a final venue to be decided later.

The forum added that it is impossible to hold a global meeting in light of the pandemic and the confusion of travel and the disparity in the distribution of vaccines and new virus strains, according to "Reuters".

Thus, the World Economic Forum has canceled a special annual meeting that was scheduled to be held in Singapore within 3 months.

The World Economic Forum is an international, non-governmental and not-for-profit institution, famous for its annual forum, which is usually organized in January every year in the town of Davos in Switzerland, and it brings together an elite of businessmen and women, politicians and academics to discuss the economic and political challenges facing the world and ways to solve them.  LINK

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Samson:  Al-Lahibi warns of a popular explosion in Iraq .. Poverty has reached very critical stages

On Sunday, MP Iqbal Al-Lahibi warned of a popular explosion in Iraq due to severe poverty.

Al-Lahibi said in an interview with Al-Ma'amah, that “the level of poverty in Iraq has reached a critical stage, confirming that the talk is that its percentage ranges between 30-40% is less than the reality, especially since the slums have turned into cities that show the harsh conditions and their accumulations that have pushed thousands of families to A very painful situation.”

Al-Lahibi added, “The economic crisis and the repercussions of raising the price of the dollar and the conditions of Corona have increased poverty rates by 15%, especially in Diyala and the rest of the provinces that have suffered a security setback after June 2014, pointing to the difficult situation, warning of a popular explosion if there are no serious efforts to confront the growing poverty. The material need that leads us to disastrous consequences in the growth of organized crime and exploitation by terrorism."  LINK

Ross:  A simple solution would be to improve the value of the IQD.  This week would be a good time for show and tell. IMO

Osmosis:  Thats too easy for these over-thinkers, IMO



MilitiaMan Saturday Night "The Brass Ring is Ready for the Taking" 5-15-2021

KTFA:

Don961:  A decisive new movement on the dollar exchange rate

Posted 2 hours ago

A spokesman for the State of Law Coalition, Representative Bahaa El-Din Al-Nouri, called on Saturday to question the Governor of the Central Bank and the Minister of Finance in the next parliament session, blaming them for raising the exchange rate .

Al-Nouri said in a statement to NRT Arabia, (May 15, 2021), that “the next session of Parliament was supposed to be to question the Minister of Finance and the Governor of the Central Bank due to the economic deterioration, as well as the questioning of the security authorities about the violations, as well as the Minister of Commerce,” indicating that “we were surprised by the presence A discussion of the Ibn al-Khatib hospital incident within the agenda of the next parliament session .

He added, "The Governor of the Central Bank and the Minister of Finance are responsible for raising the exchange rate, so that we know how this decision was taken and what are the remaining reasons to date," noting that "there is financial liquidity and this is what led to the rise in foodstuff prices and reflected negatively on the poor citizen." .  LINK

MilitiaMan:  They are surprised by that they are not having the MOF (Minister of Finance)  And CBI Governor on the session list to question. IT wont take long for their surprise to wain.. imo.  Probably because there is no need to have it with what is in the plan and in short order.  They can retro activate the payments for the last 4.5 months with a new exchange rate. That will / may make the need for questioning  to be out the door, as the purchasing power that will come from and RI will have been a fix! A fix that will be self explanatory..  imo.. ~ MM

MustangRoper:  Thanks for the analysis MM really appreciate it.

MilitiaMan:  Glad to try and help out. The things before us now are clearly showing a transformation. They have some many things done that have never been done before.

The brass ring is  to be ready for the taking imo once they give the mechanism for the 2021 activation to pay the retro active payments. That is to be after Ied Al - Fitr per articles.

The fact that SA has been in country and gearing for investment and with K mediating SA and Iran, shows the the 20 Arab nations to be in the Summit a feel good state of security and stability.

Kahdimi has been out in with citizens in the markets today showing security, after having had significant pleasantries from regional Kings, etc.. Is very telling to me that things have been agreed upon and now are in action mode.

When bankers talk compliance, they are serious about it.. I seriously like where we are now.

By far better place than ever before from what I now see. Amazing things ahead. Iraq and the regions digitial transformation is upon us.

Be happy it is.. imo. ~ MM

MilitiaMan and Petra "500 Bankers For The Roll-Out" Saturday 5-15-2021

KTFA:

FROM MILITIA MAN & PETRA

MilitiaMan:  Ask yourself why they are making advancements and not paying? "Al-Rafidain Bank announced, on Wednesday, that employees and members of the security forces have priority in obtaining advances, loans and other banking services."….

They have not been given payments per budget articles as they 2021 Budget Law is not implemented yet…. I'll be working on showing things in progress that support my view that this is fully underway.. imo….

Why would they have to give advances at a program rate?

Why have they not retro activated the payments yet?....

Why have the PTB waiting to publicly discuss the mechanism between Bahgdad and the Kurds?.... Effectively, it is a marker for something known to becoming in like or superior value. Imo…..

They are giving precedence to Master card holders… What makes you think they are waiting other than a time schedule..? MilitiaMan

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Petra:  MMs the man with the goods!!! LOL… The evidence and progress (step by step) is evident and presenting itself clearly IOO… PM K: ""The government will provide ALL CONDITIONS for the success of investment in Iraq!"… Well, time and truth go hand in hand...will wait and see!...... PETRA

MilitiaMan:  This time I bet they will too!!! "Saudi companies prepare to launch giant investments soon in Iraq"…"Transportation unveils a new tariff for land and air transit"

They'll need the price point for the tariffs too.. imo…They need the Mechanism prior to paying salaries..

""I worked with the Kurdish leaders to dismantle the misunderstanding between Baghdad and Erbil," stressing the need to establish trust between the Kurds and Arabs to solve the disputed areas crisis, indicating that "the region's dues will reach it soon.""…. They have consensus too.

"Ali clarified that "my federal and regional governments bear responsibility for the slowdown in Article 11 of the budget, which was concluded with a political agreement.""

 They are to pay immediately after Eid Al-Fitr…imo… MilitiaMan……

Petra:   Nice opinion MM.... PETRA…….

MilitiaMan:  The Mechanism is needed prior too.. imo.. Hey Petra howdy!!

Petra:  It's all about "the Mechanism!!!" Hey MM…. PETRA……….

MilitiaMan:  So will that digital roll out.. I bet Alak is at that meeting this next week!... IN STONE so we were.. Whoa…They will need the rate prior to clearing payments.. imo…$1.438700 SDR….The come out at 3 x sdr? The tide will rise all boats...

They were giving advances... It would be sweet if they get the mechanism out and on their cards prior to 23rd... ISX opens that day after having cleared all trades this week! MilitiaMan……

Petra:  .If we consider the timelines discussed this past Monday and now add the "anger" in the streets and the report of the Kurds being paid after EID there is no way they can pay the Kurds and not pay the rest of the country. No way.

Then, we have this meeting coming on the 18-20 all about what? The new "digital" world. This one has 300 bankers!! What is Iraq going to say??? HMMMMMM LOL and IMO…

But we had the meeting with the 200 bankers a week ago Thursday that, IOO, was orchestrated by a very high, global banking entity. Remember all the scheduling and organization required to put on such a meeting.

Now, we have this even bigger meeting with the 300 bankers and other personnel participating from the Arab world and beyond. (International)..."something" is being orchestrated and timed clearly. IMO…

When putting a meeting together of this magnitude you have to look at several things: 1. Timing...why now? 2. Participants...who is coming to the party? To me, these are key issues that just speaks loudly IMO PETRA……

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Militiaman:  The Prime Minister expressed his welcome to all Gulf investments for which numerous memoranda have been signed, noting that "the government will provide all conditions for the success of investment in Iraq.".. MilitiaMan…..

Petra:  Bankers, Investors, Global Companies, Compliance officers...all for the digital realm of banking, which, as of today, Iraq is ready for...but "NOT" a formal player... PETRA…..

MilitiaMan:  500 Bankers over a week time frame getting together for the roll out.. imo.. Tells me this is not just for fun.. MilitiaMan…………

Petra:  Yes MM...which begs the question again...what in the world is Iraq going to say at this meeting???? Good point..500 bankers. WoW, they must have heard something good at the last meeting. IMO…. PETRA.....

MilitiaMan:  They have been, the first round was with CENTRAL bankers. The BIS most likely had their ear well before they got on the call.. lol… My view is we have a mechanism to apply... lol Something along those lines.. lol… MilitiaMan……

Petra:  Rollout? IMO...sure looks like it! Well, the Kurds are showing up after EID to "get the mechanism!" LOL…Mechanism of Trade: Digital Technology Transfer Mechanism of Value: Rate IMO PETRA……….

MilitiaMan:  They need the rate.. imo… The logistics is insanely complex... imo Think about every code, on every widget in every container ship? Lol… MilitiaMan……

Petra:  Your not kidding MM... PETRA…….

MilitiaMan:  "I say, let everyone hear me .... What we have done in one year of fighting corruption is virtually equal to what all efforts have produced in this regard over the past 17 years. The state does not forget a debt ,,, I mean ((Al-Kazemi goes to someone else ... the state has forgotten a debt ... and every dinar stolen from the money of the Iraqi people will return ... Today we returned a part ." Found this quoate interesting.. "I say, let everyone hear me .... What we have done in one year of fighting corruption is virtually equal to what all efforts have produced in this regard over the past 17 years. The state does not forget a debt ,,,

 I mean ((Al-Kazemi goes to someone else ... the state has forgotten a debt ... and every dinar stolen from the money of the Iraqi people will return ... Today we returned a part ."

"We launched a reform project, the White Paper, and presented the draft budget for 2021, with ambitious plans to diversify investment and activate the stalled projects."……..

K speech is a good one.. Iraq is about to explode... imo "

“There are promising opportunities for Saudi products in the Iraqi market, as the Iraqi market is one of the great opportunities for Saudi products. In sharing borders with Saudi Arabia, it is an opportunity to export the product.

Saudi Arabia with the facilities provided by the Kingdom through the Saudi exports program to open new markets for manufacturers in the Kingdom, as well as the support of the Kingdom’s government and the leadership’s keenness to build relationships in various fields." MilitiaMan……….

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Petra:  It's the WP's that are drawing everyone into Iraq...but not without a ticket to enter the game!.. PETRA……

MilitiaMan:  The pressure is up!! The ban pointed out that "the policy of the Central Bank will make the Iraqi street fiery as a result of the continuing repercussions of the exchange rate hike." MilitiaMan…..

Petra:  Ok. When you need a loan..."YOU" go to the bank. K went on an "investment" tour of the ME about 4-6 weeks ago talking about investing in Iraq. He went to them! Now, what happened yesterday....SA came to Iraq!! Huge indication of things to come. Good stuff MM....

MilitiaMan:  Thanks! PETRA…… "The Kurdistan Democratic Bloc confirmed, on Friday, that the federal government will release employees' salaries and the Kurdistan Region’s share in the 2021 budget, after the Eid al-Fitr holiday."… MilitiaMan………

Petra:  So MM...Kurdistan committed to their people. How does the rest of the citizens in Iraq feel about that????... PETRA………

MilitiaMan:  Lets hope they have the international mechanism ready to roll out!!.. ", "According to the information, the salaries of employees and the region’s share in the budget law will be launched by the Federal Ministry of Finance after the Eid al-Fitr holiday."" They told us the mechanism was agreed on and was to be dealt with immediately after Eid Al-Fitr MilitiaMan…….

Petra:   Activation of the budget MM!! Or should I say....implementation LOL IMO…. PETRA………

MilitiaMan:  The last day of the Meeting is the 20th.. Think about that.. Could be a very powerful ending of the show.. lol……"Al-Kazemi orders the implementation of the joint security agreement between Baghdad and Erbil". MilitiaMan…………

Petra:  Secure the borders!!... PETRA…….

MilitiaMan:  "The King of Bahrain congratulates the Iraqi President on the occasion of Eid al-Fitr"…. In this context, the Prime Minister exchanged congratulations with the King of Saudi Arabia, Salman bin Abdulaziz Al Saud, the King of Jordan, Abdullah II bin Al Hussein, the Emir of the State of Kuwait, Nawaf Al-Ahmad Al-Sabah, the Emir of Qatar, Tamim bin Hamad Al Thani, the King of Bahrain, Hamad bin Isa Al Khalifa, and the President of Egypt Abdel Fattah Al-Sisi, Turkish President Recep Tayyip Erdogan, and Kuwaiti Prime Minister Sabah Al-Khaled Al-Sabah. MilitiaMan……….

Petra:  Looks like most of GCC placed a call to K. I bet all of those countries will be represented on Tuesday at the meeting!!!! Will be a curious thing on what Iraq has to say at that meeting!... PETRA……..

MilitiaMan:  The article suggests there will be 20 countries also represented.. So yep "Participation from Central Banks in the 20 Arab states with attendance including senior staff in compliance, innovation, and digital transformation."… "

#ADBANX2021 May 18-19-20, 2021 12:00- 16:00 GMT The Largest Virtual Event in the Arab Region on Digital Banks"… "Over 300 Arab Financial Institutions shall participate with attendance including CxOs, innovation and products leadership, customer experience teams, and digital transformation leadership."..

"5- Central Bank Digital Currency (CBDC) – What it means for Banks."…

They would not need to give out advances on a program rate. They are going to a less cash system which in my view is a system that has significant more value to it. The present rate is merely a punishment rate and yes,,, they were devalued for reasons.

1) get chunky money off the streets, stir up the ability to pay debt cheaper, and in the end bring purchase power in doing so.

The devaluation to $1460 with the deletion of the zeros is $1.46 and expressed to the SDR we get alot of value.. imo….

The last part to be lifted is the exchange rate.. imo MilitiaMan……

 Petra:  Yup MM...don't know what else to do but.....smile!.. PETRA……….

MilitiaMan:  Yes Petra Cheshire Cat Large too!!.... MilitiaMan

MilitiaMan Friday Afternoon "Digitilization of Iraq and the Region" 5-14-2021

KTFA:

MilitiaMan:  There is a clear and concise move to digitalization for Iraq and the region. (See articles below)

We saw the like of 200 Senior officials from banks and Central Banks around the world with the BUNA conference on the sixth of May. Then on the 8th of May there is more on the digital transformation of the country.

Now we see 300 Banks and from 20 Arab States are to attend a virtual event on the same topic of digitization in the coming days. 

To gather this sort of attention is for a serious reason, one is for security and stability an other is transparency and to fight corruption.

The big players know all to well that if not in check, they'll be ripped off. With the new system, that worry will be far less now than at present.

Keep in mind those that have a need to know of what to expect from the level playing field will be there. They know know now that Iraq is open for business.

The recent NIC plat form from the GOI told us that investors can now make application to get into investments. That will require international standards. Along with it an exchange rate that complies too.

We see today they expectation to pay salaries is post Eid Al-Fitr. That is not far off.

Also note the fiery citizens are getting restless. All point to positive pressure.. They will need to have show time sooner than later.

Show time is 18th - 20th of May.  imo Things are looking very good indeed!!! ~ MM

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Samson:  ARAB DIGITAL BANKS SUMMIT

#ADBANX2021 May 18-19-20, 2021 12:00- 16:00 GMT

The Largest Virtual Event in the Arab Region on Digital Banks

Summit Stakeholders:

 Arab Banks

Over 300 Arab Financial Institutions shall participate with attendance including CxOs, innovation and products leadership, customer experience teams, and digital transformation leadership.

Financial Regulators

Participation from Central Banks in the 20 Arab states with attendance including senior staff in compliance, innovation, and digital transformation.

Fintech & Regtech

Participation from Fintech associations, Fintech scale-ups, and start-ups, Fintech & Regtech Venture Capitalists, and Angel Investors.

Summit Topics

1- Digital Banks Regulatory Frameworks & the Model Arab Digital Bank Initiative.

2- Digital Banks Strategy Comparisons-Spin-Off, Organic, M&A.

3- Customer Experience – What Matters the Most for Digital Banks.

4- How is the Arab Banking Sector Positioned in a Global Highly Competitive Open Banking Landscape.

5- Central Bank Digital Currency (CBDC) – What it means for Banks.

6- Digital Labs – Case Studies from Arab Banks.  LINK

Don961:  THE ARAB MONETARY FUND (AMF) HOLDS A VIRTUAL WORKSHOP TO DISCUSS BUNA’S COMPLIANCE STANDARDS AND INFORMATION SECURITY CERTIFICATION

 6th May, 2021

The workshop is hosting guest speakers from international specialized entities

More than 200 senior officials will attend, representing central banks and a wide spectrum of financial institutions from the region and beyond

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He pointed out that the Central Bank of Iraq launched the "digital enrollment service", which is the first of its kind in Iraq, which is an integrated digital financial system that promotes independence and financial liberation from traditional financial systems, as it works to transform Iraq into a country less dependent on cash, which enables the state to bypass bureaucracy. In financial transactions within the operating banks in Iraq.

Khalaf added, "Our sponsorship of this conference confirms our interest in the issue of digital transformation, and our keenness to continue investing in infrastructure and database, applying the latest existing technologies, providing banking services in a large scale and investing in human capital for a better future for our upcoming generations."

We are certain that digital transformation is the prevailing trend to achieve national integration, and it has been proven that we have three areas and outlets that are used in various fields, namely the land, the sea and the air.

Therefore, Iraq has to consider the cyberspace as its fourth field because of its effective and clear impact. In leading national tasks such as economic development, trade, transactions, social, medical and health interactions, government operations, and national security.

He said: Iraq adopted the National Cybersecurity Strategy to provide strategic measures and procedures to ensure the security and protection of the Iraqi presence in cyberspace, protect the digital infrastructure, and build and nurture a safe and reliable internet community, as this strategy consists of several supportive short, medium and long-term plans.

As for the managing director of the Arab Company for Electronic Payment, Haider Al-Obeidi, he stressed that the direct cooperation between the Central Bank of Iraq and the providers of electronic lift services has contributed to the consolidation of the electronic payment infrastructure, in terms of the database, governance rules and instructions, and local and international compliance.

He pointed out that the companies licensed by the Central Bank, Visa and MasterCard, and the two operators were able to support most banks in issuing international cards and portraying the reality of electronic payment services.  LINK

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Minister of Finance Ali Allawi stated that «the transition of Iraq to the digital age is one of the most important priorities of the government»,

Pointing out that «the transfer of the national economy to the digital age requires skills and a great effort on the part of the government and the private sector, in order to achieve this qualitative leap, which is built on the basis of strengthening Digital infrastructure, and this requires investments in the telecommunications sector and digital work, to lift the Iraqi economy from focusing on narrow sectors to a wider stage. 

Allawi revealed, "The Ministry of Finance directed to convert a small government bank into a fully digital bank, in addition to adopting important projects in government banks to start diversifying digital capabilities. As for a member of the British House of Lords, Baroness Emma Nicholson, she described this summit as a mission at a time when the world is heading to expand in the field of digital economy, which is an important transition in the management of global economies, stressing "the need to benefit from this experience."

In turn, the representative of the company organizing the conference, Ahmad Al-Jader, explained that “Iraq's need for such international conferences is a necessity in light of the widespread demand to adopt advanced technologies that contribute to shortening time and effort in order to reach the stages of sustainable development,” indicating that “the shift towards transactions Digital and governance are greatly undermining corruption. ”  link

"Vietnam News" Posted by Samson Thursday 5-13-2021

KTFA: Vietnam News

Samson:  Foreign investors will soon return to Việt Nam's stock market: HSBC

10th May, 2021

Việt Nam’s stock market is expected to continue to grow, helped by strong economic growth and increasing local liquidity. The positive outlook will attract foreign investors back to the market, according to HSBC.

In the Asia Frontier Insight - Việt Nam report, the research team from HSBC believe that foreign investors cannot ignore Việt Nam’s market any longer as it offers a favourable risk-reward opportunity in one of the most resilient growth economies and the market’s liquidity is rising.

Foreign ownership limits are the main problem for foreign investors but the bank believes that it is not a deal-breaker. Of 30 biggest companies in the VN30 basket, 24 still have room for foreign investors. 

Another supporting factor is stocks that have already reached FOL can be bought by paying the difference in prices. HSBC reports that as these stocks generated strong profit growth but are traded at cheaper prices compared to other Asian peers, the gap between prices is not big. And even though they're slow, policy reforms are underway which has a positive effect on the market. 

Lastly, valuations are attractive, the report says. The VN-Index is trading at a 12-month forward price-to-earnings ratio (P/E) of 15.1x, a 5.3 per cent discount on its five-year average, and at a 12-month forward price-to-book ratio (PB) of 2.5x, a discount of 2.9 per cent.

The effective containment of COVID-19 has led to a strong rebound in economic growth and continued strong domestic liquidity, boosted by new individual investors. "While this increases volatility risk, we do not see a major correction risk. With deposit rates falling and gold prices under pressure, there are not many alternatives for this volume of liquidity,” says the report. The bright outlook of the stock market on economic recovery was also confirmed by strong corporate results in the first quarter of 2021, with revenue rising 24.8 per cent year-on-year and net profit up 51.8 per cent. 

As of April, the market benchmark VN-Index jumped 12.4 per cent compared to the beginning of the year, outperforming all the major regional benchmarks. The index also broke the psychological barrier of 1,200 for the first time, a level it failed to reach during previous bull markets in 2007 and 2018, the report says.  Despite the strong growth, foreign investors kept fleeing from the country's stock market since early 2021.   LINK

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Samson:  US firms interested in Vietnamese supply chain

9th May, 2021

A new report has found 43 per cent of US-based respondent companies cited Việt Nam among their top three buying geographies as of early 2021, doubled from 2019, according to the Q1 2021 report from QIMA, a US provider of supply chain compliance solutions.

The report surveyed more than 700 businesses with international supply chains.

The data shows a 16 per cent year-on-year increase in demand for inspections and audits in Việt Nam in the first quarter of this year, which represents a third consecutive quarter of growth that had initially begun as a post-lockdown rebound in mid-2020, the article cited a report from QIMA, a provider of supply chain compliance solutions.

This growth is more than just a return to pre-pandemic levels, as Q1 2021 inspection demand has, on average, doubled compared to Q1 2019.

The appetite for Việt Nam sourcing is far from satisfied and is poised to redefine the sourcing landscape in 2021: around a third of buyers globally and 38 percent of US-based buyers name it among countries from where they plan to buy more in 2021.

The website says Việt Nam was not the only country in the region to benefit from expanded business volumes, as data on inspection and audits demand in Southeast Asia show double-digit growth across the board, fueled by the renewed interest from American and European brands alike.  LINK

Samson:  Việt Nam should continue support for vulnerable groups to ensure growth: IMF official

8th May, 2021

Việt Nam will record positive economic growth in 2021, at about 6-7 per cent, if the country continues to support vulnerable groups in the economy and carries on its vaccination campaign, said Jonathan Ostry, Deputy Director of the Asia and Pacific Department of the International Monetary Fund (IMF).

The Southeast Asian country needs to lay a foundation for strong growth in the mid-term, including ensuring sufficient revenue resources for infrastructure development and implementation of public investment, he said. It is necessary for the nation to ensure a resilient financial system, and continue efforts to improve the investment climate, Ostry added.

Regarding a plan being drafted by the Vietnamese Government to assist enterprises during the pandemic, the IMF official said the country’s fiscal policy should be loosened to support economic activities, and limit negative impacts from the pandemic. Policy adjustments depend largely on the speed of economic recovery at the global level, which faces a lot of uncertainties, he said.

Pointing out the weak uptake of tax deferrals in Việt Nam, particularly in the hardest-hit sectors of the economy, the IMF recommended the introduction of temporary corporate income tax (CIT) loss-carry backwards to improve firms’ cash flows, better targeting of temporary CIT reductions to benefit distressed but viable small and medium-sized enterprises, and the introduction of temporary provisions for accelerated depreciation or investment tax credits. He said Việt Nam’s economic growth story in the past three decades is notable since it is sustainable and inclusive growth that helps improve local livelihoods.

Thanks to market-oriented reforms which enable improvements in the business climate, and the attraction of huge amounts of foreign direct investment, Việt Nam has risen from being in the group of the world’s poorest countries to gaining “middle-income” status.

The country should work to improve the business environment and ensure an equal playground, he said, adding this includes reforms geared towards simplifying and reducing the regulatory burden for domestic firms, easing entry costs for enterprises, continued reform of State-owned firms, and enhancing good governance.

Additionally, he suggested Việt Nam enhance human capital and technology access to boost labour productivity, which facilitates investments in more complex products that can gain a better competitive edge in the international market.   LINK

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Samson:  Confidence in Việt Nam’s business environment continues to rebound

May, 06/2021 - 08:30

European business leaders began the year positive and optimistic about Việt Nam’s trade and investment environment, according to new data from the European Chamber of Commerce in Việt Nam (EuroCham).

EuroCham’s Business Climate Index (BCI) hit 73.9 points in the first quarter of 2021. This is the highest score recorded since the third quarter of 2019, before the COVID-19 pandemic hit global trade and investment. This continues a positive upward trend, with the score rising more than 47 points over the last 12 months.

It comes after Việt Nam recorded strong economic growth at the start of 2021, and this is reflected in the optimistic outlook of European enterprises. When asked about the prospects of Việt Nam’s business environment in the next quarter, 67 per cent predicted either ‘excellent’ or ‘good’ – a 12 per cent increase compared to the previous quarter. Business leaders are also more optimistic about their own companies. More than two-thirds (68 per cent) predict that orders and revenue will ‘maintain or increase’ over the next three months. That’s a 25 per cent increase compared to the fourth quarter of 2020.

EuroCham members are also seeing positive effects from the EU-Việt Nam Free Trade Agreement (EVFTA) which came into force on August 1, 2020. Since it was implemented, more than 60 per cent have benefitted from the agreement. However, business leaders continue to report that ‘administrative procedures’ are the biggest hurdle for them to utilise the EVFTA.

The BCI is a regular barometer of EuroCham members and their perceptions of the business environment. Each quarter, it tracks the performance of EuroCham’s member companies and their perceptions of the economic outlook in Việt Nam. The fieldwork and data collection for the BCI is conducted by YouGov Vietnam.

Commenting on the BCI, EuroCham Chairman Alain Cany said: “The Business Climate Index confirms once again that Việt Nam is open for business. While countries continue to struggle with the impact of COVID-19, Việt Nam has ensured that companies here can continue their operations as close to normal as possible. This is helping to drive economic growth and fuel the confidence of European business leaders.

“Therefore, it is no surprise that EuroCham members are positive about the future of their own companies and optimistic about the prospects for Việt Nam’s trade and investment environment. The BCI has now almost climbed back to pre-COVID levels – this is a remarkable achievement and further evidence that Việt Nam is on the right path to achieving its twin goals of protecting health and promoting economic growth.”

Thue Quist Thomasen, CEO of YouGov Vietnam, added: “Beyond the headline figure, the data in our latest BCI tells us a lot about Việt Nam’s business environment. For instance, the fact that more business leaders are anticipating a rise in their headcounts and investment plans is – in itself – a vote of confidence in Việt Nam’s long-term prospects. It shows that companies are investing in their workforces and their businesses now in anticipation of a strong and prosperous 2021.”   LINK

KTFA Members "Wednesday News" 5-12-2021

KTFA:

Al-Kazemi: A delegation heads to Kurdistan to solve the disputed territories crisis   LINK

MilitiaMan:  Lets see if they iron out the kinks this week. The Government bears the responsibility in paying dues, yet, lets see what do, as they have a political agreement to sort things out. 

Everyone in the ME and around the world is watching and waiting for them to set the terms (mechanism) for international trade... imo

It is coming. Even the pressure from SA is noticeable..  They would be wise to not have another meeting about investments unless of course they meet over the successes from the outcome, that is to come from them.. imo ~MM 

Samson:  Inflation in the US is at its highest level in 12 years

05/12/2021 17:47:58

Consumer prices in the United States recorded the largest increase in nearly 12 years last April.

The US Labor Department said today, Wednesday, that the general consumer price index jumped 0.8 percent last month, the largest increase since June 2009, after rising 0.6 percent in March.

Economists polled by Reuters had expected the index to rise 0.2 percent last April.

On an annual basis, the consumer price index jumped 4.2 percent in the twelve months to the end of April, and this figure is the largest increase since September 2008.   LINK

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Samson:  The Bahraini Central Bank enters the world of digital currencies, in partnership with a US bank

12th May, 2021

The Central Bank of Bahrain said in a statement on Tuesday that it will launch a pilot project to settle digital currencies, in cooperation with JP Morgan and Arab Banking Corporation (ABC).

"ABC Bank and JP Morgan will initiate a joint experiment to transfer funds to and from the Kingdom of Bahrain between buyers and suppliers in US dollars," the statement said.

"This process will result in paying suppliers faster and buyers transferring their payments in shorter periods of time without having to keep the money in advance," he added, according to Reuters.

Central banks around the world are increasingly interested in digital cash, in an effort to fend off emerging threats to traditional money and to make payment systems smoother.

Fearing the spread of cryptocurrencies, central banks are researching and trying digital currencies.

Central bank digital currencies are essentially electronic money, just like traditional cash, as they give their holders a direct claim from the central bank and allow companies and individuals to make electronic payments and transfers.

Central banks fear losing control of money issuance and payment systems for cryptocurrencies, such as Bitcoin or even the Facebook-backed digital currency "Dim".

The spread of forms of payment that are not supervised by any central or public authority may weaken the grip of central banks on the money supply, and thus economic stability. As the threat becomes deeper as cryptocurrencies are increasingly adopted.

China aims to become the first major central bank to issue a digital currency, the European Central Bank is exploring the launch of the digital euro within the next five years, and the Bank of England has intensified its research into what it has called "Britcoin" without making any firm pledges.

In turn, the US Federal Reserve said that it will not rush to issue any digital dollars. His boss, Jerome Powell, said this year would be important in "moving the ball."

Even smaller central banks are also active, with the Bahamas last year becoming the first country to introduce a central bank digital currency nationwide.  LINK

Don961:  A "wacky" paragraph in the current fiscal year may "nibble" the surplus money from the oil price and demolish optimism by closing the deficit.

2021-05-12  Yes Iraq: Baghdad

 The responsible and popular Iraqi authorities are counting on the rise in oil prices and the surplus funds that will be realized from the difference in the price of a barrel of oil in the budget set at $ 45 a barrel, compared to the realistic price that exceeded $ 65 and may touch $ 70 during the second half of this year.

However, this optimism may collide with another expected reality, as the failure of the expected non-oil revenues to "eat" the expected surplus revenues from oil prices, which means that the deficit will not be easily filled by the expected financial surplus from oil prices.

The Iraqi Economists Network says in a statement that "Yes Iraq" received a copy of it, that "through our follow-up of international oil prices since the beginning of this year, we have noticed a significant increase from the annual rate adopted in the Federal Budget Law for the year 2021, at $ 45 a barrel." The lawmakers had expected to collect revenues from exporting crude oil at about 81 trillion dinars, based on an annual export rate of 3,250 million barrels per day and an exchange rate of 1,450 dinars to one dollar. 

However, the amount of oil revenues that were mentioned in the budget law published in the Iraqi newspaper Al-Waqa'yat includes an arithmetic error, as it should be 77.4 trillion dinars, equivalent to 53.4 billion dollars (3,250 million barrels x 45 dollars x 365 days = 53.4 billion One dollar x 1450 = 77.4 trillion dinars) instead of 81 trillion dinars. The result of this accounting error increased the planned deficit to 32,3 trillion dinars instead of 28,7 trillion dinars, as reported in the Iraqi newspaper Al-Waqae He adds: “According to the data of the Iraqi oil export company SOMO, the actual export rate during the first four months of this year was 2.93 barrels per day from the Basra and Kirkuk fields (and without the oil exports from the Kurdistan region?). The average export price per barrel during the first four months was slightly less than $ 60, an increase of $ 15 over the rate of the estimated price fixed in the budget law.

He pointed out, “Assuming that this level of prices continues until the end of the year, we expect in the basic scenario that oil revenues will reach 64 billion dollars. Then an amount of 5.5 billion dollars will be added to it for the exports of the Kurdistan region agreed upon in the budget law, at a rate of 250 thousand barrels per day. Thus, we expect Iraq's total oil revenues to rise to 69.5 billion dollars as a projection instead of the planned 53.4 billion dollars, an increase of about 16 billion dollars, equivalent to about 23 trillion dinars. 

On this basis, the planned and corrected oil revenues will rise by us to approximately 100.8 trillion dinars. After adding the planned non-oil revenues by 20 trillion dinars, we will get the total budget revenues of 120.8 trillion dinars in exchange for total planned and corrected revenues instead of 101.3 trillion dinars as stated in the law, with an increase of 19.5 trillion dinars according to our projections.

In the optimistic scenario, we assume a breakthrough in the Corona crisis during the second half of this year, and at the very least in advanced industrial countries, which will lead to an increase in global demand for crude oil. Assuming the commitment of the OPEC Plus (+) group to the current levels of production, it is possible that the average global price of crude oil will rise to approximately $ 70 per barrel, which means achieving an annual average price for Iraqi oil exports of about $ 65 during the year 2021. On this basis we expect a rise in Iraq's oil revenues amounted to about 77 billion dollars, equivalent to about 112 trillion dinars, an increase of about 35 trillion dinars over the revised plan in the 2021 budget.

At first glance, it seems to some that the amount of the increase in oil revenues in the first basic scenario will reduce the planned and corrected deficit from 32.3 trillion dinars to a planned deficit estimated at 13 trillion dinars, and in the second optimistic scenario to a planned and corrected surplus of 2.7 trillion dinars. In this regard, we must draw attention to the fact that this type of in-depth and offensive accounts of economic professionalism does not take into account that the level of actual deficit at the end of the year will in turn be subject to a second variable, which is the difference between the planned and actual non-oil revenues achieved at the end the year.

 Therefore, we appeal to government agencies and members of the House of Representatives to be careful in their statements in the media, because of the possible confusion in public opinion.

 We believe that the non-oil revenues that are planned to rise from an actual 7 trillion in the year 2020 to 20 trillion dinars represent unrealistic estimates, and we expect that they will be around 12 trillion dinars this year at best because of the rampant corruption in the government administrative apparatus, which determines who Achieving this type of revenue on the one hand, and the continuous economic downturn this year due to the Corona pandemic on the other hand. On this basis, we expect the actual deficit in the first scenario to reach 22 trillion dinars, which is more likely, which means the continued need for borrowing to ensure the financing of current spending and employee salaries. As for the second optimistic scenario, it will result in a deficit of 9 trillion dinars. On this occasion, we would like to emphasize our previous proposals regarding the only alternative to borrowing, which is to reduce the waste of financial resources, rationalize current spending, and eliminate financial and administrative corruption.

In all cases, the structural financial crisis associated with the nature of the rentier state is not expected to end and the achievement of financial sustainability this year, as the founding member of the network, Dr. Mazhar Muhammad Salih, explained in his recent research entitled Iraqi financial sustainability and the matrix of tax restrictions published on our network website in April 2021.  link

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Samson:  Restricted floatation or restricted citizen

11th May, 2021 by Zaki Al-Saadi

We all know that the government went towards a restricted float of the dollar and reduced the value of the local currency, the Iraqi dinar from 1119 to 1450, for reasons of its pride in financial inflation, curbing currency smuggling, supporting local production, and appealing to investors who have capital to come to the country by supporting the foreign currency in front of the reduction of the local currency. However, there is a real reason behind this restricted float, which is what the government faced in the fourth quarter of last year in terms of its inability to cover the salaries of employees, which is a major reason for them to go towards reducing the local currency against the dollar because Iraq depends in its budget on the value of the dollar resulting from the sale of oil ..

Which witnessed a significant decrease in 2020 in the shadow of the Corona pandemic, and reached its lowest levels, reaching $ 16. But oil began to recover at the beginning of this year, to reach $ 69, but the decision to float it was taken by the ruling authority.

Therefore, we conclude that the government has its reasons for reducing the Iraqi dinar, but he sees these reasons and aspirations achieved ??

What has been achieved is contrary to what the government had expected, as speculation in the price of the dollar occurred. The poor citizen and the simple employee bear the burden of the depreciation of the dinar, so the citizen was surprised that everything in the market increased by 35-100%.

As for what was mentioned about increasing the exchange rate, it helps prevent the leakage of hard currency, the US dollar, outside Iraq.

The return of the dollar sale window recently witnessed a large withdrawal of hard currency and its return to the same previous figures, as it witnessed at the beginning a remarkable decrease in sales of dollars from 250 million dollars to 50 million dollars a day, but now I began to return to figures similar to the previous one, therefore, one of the reasons that was a desired goal was not Checks.

Returning to the fact that the decrease in the dinar would have contributed to supporting the local product from industry and agriculture, this did not happen because the local product depends on the imported raw material in dollars, so the markets witnessed a very high value for the local product once this decline occurred. Domestic product is self-sufficient, regardless of its quality, which many of us have a negative indicator.

Before the devaluation of the dinar, specialists had to monitor and study the local market and study the amount of local production and the economic efficiency of the market in light of local production based on imported raw materials in hard currency.

It is also strange that the exchange rate rose also with the increase in the Central Bank of its sales of hard currency (dollars), and it was supposed to decrease as a result of its abundance.

Therefore, what happened in the first month of the devaluation of the dinar, the decline in the sale of the dollar by the central bank, is a result of traders’ fear of price fluctuation and the government’s decision.

It was expected politically to pressure the Financial Committee to return it to the old price, and therefore merchants in the previous months were reluctant to buy and went towards disposing of the dollar they had hoarded. Until the time came to confirm the new exchange rate in the budget, so sales returned to their previous state.

Moreover, there are voices rising from the World Bank recommending raising the price of the dollar to 1,600 Iraqi dinars, and therefore if the government responds to this voice, we are going to a policy of impoverishing society and reducing the standard of living, and this is a catastrophe with no consequences. The fact that society suffers from an unemployment crisis has also increased by 32%, which is a very serious percentage that needs review.

Restricted floatation, we will not be able to restrict it as long as the studies are not integrated, the industry is disrupted, the Iraqi market is uncontrolled, and the local product does not achieve self-sufficiency.  LINK

"Dancing in the Streets!" More From MilitiaMan and Samson Tuesday PM 5-11-2021

KTFA:

Samson:  A Kurdish delegation to visit Baghdad after the Eid .. This will be discussed?

11th May, 2021

The Parliamentary Finance Committee revealed, on Tuesday, a Kurdish delegation's visit to Baghdad.

The deputy of the Patriotic Union of Kurdistan, Shirwan Mirza, said, according to Kurdish media, that "a technical delegation from the Kurdistan region will visit the federal capital, Baghdad, after Eid Al-Fitr, to discuss the mechanism for implementing Article (11) of the budget law for the current year."

Mirza explained, "Article (11) does not stipulate the delivery of crude oil to the Kurdistan region, but rather the establishment of the specified quantity," indicating that "we want to know the mechanism for implementing this paragraph. Will it be calculated by clearing and deducting the oil from the region’s share of the budget and spending the remainder, or depositing in the region, oil sold in a bank account for the benefit of the federal government.  He stressed, "The mission of the delegation that will visit Baghdad is to agree on the mechanism for implementing Article 11 of the Federal Budget Law."

The deputy added, "According to the statements of the Federal Prime Minister Mustafa Al-Kazemi, the federal government is about to end the distribution of the sections of exchange included in the budget, including the Kurdistan region, and therefore he announced that the region's dues will soon be sent," explaining that "the region is waiting to send its share of the budget for this month."     LINK

MilitiaMan:  I imagine they will have a mechanism front and center right after Eid A - Fitr. That is the whole skinny of it.  The mechanism, i.e., an exchange rate is or may be calculated based over time and averaging, in some cases, imo.. Regardless the topic is the mechanism and that my friends is a big deal! They want to know what rate at which to calculate now.. imo  ~ MM

"An exchange rate mechanism is not a new concept. Historically, most new currencies started as a fixed exchange mechanism that tracked gold or a widely traded commodity. It is loosely based on fixed exchange rate margins, whereby exchange rates fluctuate within certain margins."

"An upper and lower bound interval allows a currency to experience some variability without sacrificing liquidity or drawing additional economic risks. The concept of currency exchange rate mechanisms is also referred to as a semi-pegged currency system."

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How long is Eid Al-Fitr?   one to three days 

Eid al-Fitr is celebrated for one to three days, depending on the country. It is forbidden to fast on the Day of Eid, and a specific prayer is nominated for this day.

https://www.investopedia.com/terms/e/exchange-rate-mechanism.asp#:~:text=An%20exchange%20rate%20mechanism%20is,rates%20fluctuate%20within%20certain%20margins.

Samson: Source: The ban will be lifted immediately after Eid Al Fitr

13:43 - 11/05/2021

A health source close to the National Health and Safety Committee revealed, on Tuesday, that the committee is discussing lifting the total ban immediately after the end of the Eid Al-Fitr holiday in the event that the number of injuries continues to decrease.

The source said in a statement to "the information", that "the pressures facing the National Health and Safety Committee from citizens and some official bodies regarding the reduction of the ten days announced by the committee for a total ban, as the committee held a meeting yesterday to study these requests."

The source added, "The committee discussed the issue of lifting the total ban and reached a near-final agreement to lift the total ban immediately after the end of the Eid Al-Fitr holiday," indicating that "the committee stipulated that the number of injuries decrease to lift the ban completely."

It was more than an Iraqi governorate yesterday, Monday, requests were submitted to the Health and Safety Committee, demanding that it be excluded from the comprehensive curfew approved by the committee for a period of 10 days.    LINK

MilitiaMan:  I'll bet once they see the mechanism they'll be dancing in the streets... lol imo ~ MM... me too.. ha!

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Samson:  Kurdistan issues a budget law without mentioning its total

11th May, 2021

The Ministry of Finance in the Kurdistan Regional Government announced the approval of the region’s budget bill.

A brief statement of the ministry stated that after eight years 2013-2021, the Minister of Finance and Economy signed the budget of the Kurdistan region and sent to the Council of Ministers of the regional government, without reference to the value of the budget, as its provisions are to be discussed by the Council of Ministers of the region, provided that it is transferred to the Kurdistan Parliament from Order to vote it.  LINK

MilitiaMan:  Well looky here. Without reference to the value.. MECHANISM, is missing.. lol Well we read that is on the table after Eid Al-Fitr.. They need the mechanism's value!! I like it. Let the feast begin.. imo ~ MM

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Samson:  Saleh assures the Saudi delegation the importance of strengthening bilateral relations and the role of Iraq in consolidating the security of the region

05/11/2021 18:45:47

The President of the Republic, Barham Salih, today, Tuesday, May 11, 2021, received the Saudi Deputy Defense Minister, His Highness Prince Khalid bin Salman bin Abdulaziz.

According to a statement by the Presidency of the Republic, the Euphrates News Agency received a copy of it today, at the start of the meeting, Prince Khaled conveyed the greetings of the Custodian of the Two Holy Mosques King Salman bin Abdulaziz and Crown Prince Muhammad bin Salman to the President of the Republic, while Prince Khaled carried his greetings and appreciation to the King and the Crown Prince During the meeting, they reviewed the close fraternal relations between the two brotherly countries and ways to strengthen them.

President Barham Salih stressed the importance of developing relations between the two sides and consolidating cooperation horizons in various fields, working with the agreements and memoranda of understanding signed between the two countries in the fields of security, economy and investment, and strengthening them towards more cooperation and joint coordination in a manner that achieves the interests of the two countries and the two brotherly peoples.

During the meeting, the depth and development of Iraqi-Saudi brotherly relations were praised, and the two countries' keenness to develop close bilateral cooperation and coordination, pointing to the pivotal role of the Kingdom of Saudi Arabia in the Arab and regional regions, and affirming that a secure, stable and sovereign Iraq and close relations with its Arab depth and its Islamic neighborhood is the basis of to consolidate security, stability and development in the region.

For his part, Prince Khaled extended his thanks and appreciation to the President of the Republic, stressing the Kingdom's commitment to supporting the security and stability of Iraq and strengthening the bonds of cooperation between the two countries in the fields of security, economy and investment in the interest of the two brotherly peoples.   LINK

MilitiaMan:  This is a big deal and it looks like they have agreed on many things. Security and Stability are a couple items, as are the economy and investments.. Oh, I like this.. Bring on the MECHANISM!!! ~ imo ~ MM

MilitiaMan and Samson "Change is in the Wind" Tuesday 5-11-2021

KTFA:

MilitiaMan:  Lets see if they iron out the kinks this week. The Government bears the responsibility in paying dues, yet, lets see what do, as they have a political agreement to sort things out. 

Everyone in the ME and around the world is watching and waiting for them to set the terms (mechanism) for international trade... imo It is coming.

Even the pressure from SA is noticeable..  They would be wise to not have another meeting about investments unless of course they meet over the successes from the outcome, that is to come from them.. imo ~MM 

Samson:  Al-Kazemi: A delegation heads to Kurdistan to solve the disputed territories crisis

9th May, 2021
Mustafa Al-Kazemi, Iraqi Prime Minister, announced that a delegation will head to the Kurdistan region this week to solve the disputed territories crisis.

The prime minister said during an interview broadcast by Al-Iraqiya News Channel, which was followed by the Iraqi News Agency, "INA", today, Sunday, that the relationship between Baghdad and Erbil today is in its golden age."

Al-Kazemi continued: "I worked with the Kurdish leaders to dismantle the misunderstanding between Baghdad and Erbil," stressing the need to establish trust between the Kurds and Arabs to solve the disputed areas crisis, indicating that "the region's dues will reach it soon."

He revealed "a delegation will head this week to the region to solve the disputed areas crisis," noting that "we will address the disputed areas crisis with a proposal that Baghdad will present to Erbil."

LINK

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Samson:  Deputy: Finance bears responsibility for delaying budget execution

14:07 - 10/05/2021
Member of Parliament, Hassan Ali, on Monday, carried the Ministry of Finance the delay in implementing the Federal Budget Law, indicating that the government did not implement any poor budget law.

"There is a slowdown in the implementation of the budget law for 2021 by the Ministry of Finance, which is something the government bears," Ali said in a statement to Al-Maalouma.

He added: "The upcoming elections and the start of propaganda campaigns for some political parties are other reasons for delaying the implementation of the fiscal budget law for the current year," ruling out "sending Baghdad the Kurdistan region’s share before holding new talks between the two sides."

Regarding the agreement between Erbil and Baghdad within the budget, Ali clarified that "my federal and regional governments bear responsibility for the slowdown in Article 11 of the budget, which was concluded with a political agreement."   LINK

Samson:  Sadikoun: There is a surplus in the budget, and there is no need to borrow

17:16 - 10/05/2021

"We have an explosive budget and there is a large surplus in it, and there is no justification for the financial representation regarding the need to borrow."

Al-Fatlawi said in a statement to the agency / information / that “there are major flaws in the Ministry of Finance, and there is no justification for asking for financial representation and the need to borrow because the budget is explosive, oil prices are high, and there is a large surplus in the budget.”

He added, "There are revenues from industry, agriculture, trade and border crossings, and there are large revenues from collection and taxes, and there is no need for us to borrow."

He pointed out, "The government should take a position on the Minister of Finance and the confusion within the ministry and the need to intervene before dumping Iraq into debt."

It is noteworthy that Parliamentary Finance called for the need to borrow. 

""There are revenues from industry, agriculture, trade and border crossings, and there are large revenues from collection and taxes, and there is no need for us to borrow."  LINK

MilitiaMan:  All of the above items will be to support their international exchange rate (REER). Not to mention the recent increase for $1.5 billion in revenues from oil to $6 Billion now per month.  Hence, all of the above is why the Kurds are looking for their dues.. The "Golden Age is to be upon them.. imo. ~ MM"

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Samson:  Al-Kazemi refers to an "unprecedented" security coordination between Baghdad and Erbil: it will curb terrorist attacks

9th May, 2021

On Sunday, Prime Minister Mustafa Al-Kazimi indicated that "unprecedented" security coordination occurred for the first time, between Baghdad and Erbil, that would end terrorist attacks in the disputed areas and the "security vacuum" areas.

Al-Kazemi said, during his meeting with the presenters of a number of Iraqi satellite programs, that "the relationship between Baghdad and Erbil is at its best, the level of trust between the federal government and the regional government." He pointed out that he had "historical struggle relations with the Kurds from the days of the struggle against dictatorship, and with all Kurdish leaders, whether in Sulaymaniyah or Erbil, and that he tried to dismantle some of the elements of tension, and worked to dismantle a lot of misunderstanding, which contributed to approving the budget."

On the 2021 budget, Al-Kazemi explained, "The budget contains a clear agreement between the federal government and the regional government, and it was approved in Parliament and covered with parliamentary support." He noted that "Baghdad is now in the final stage of approving and distributing the budget sections, and Kurdistan's share will soon reach Erbil."

On the disputed areas, the Prime Minister stressed that it is "a long problem, and it is illogical to solve it in two days, and there is a need to establish trust between Arabs and Kurds, which are areas not only with Erbil but throughout Iraq." He continued, "We have disputed areas. We need a stable political situation more than the current situation in order to build all the elements of confidence," noting that "a delegation to the region went earlier, and another delegation will go to find solutions regarding security coordination, which, unfortunately, are exploited by ISIS gangs and terrorist groups." 

Al-Kazemi expressed his confidence that "the regional government will cooperate with Baghdad's proposals in this direction, because the security of the region is the security of Iraq and it is a collective responsibility." He pointed out that "representatives of the region attended for the first time in a security meeting in Baghdad, they discussed the issue of the disputed areas, which are sensitive and dangerous areas exploited by the enemy, and the two parties will work to solve their problem with a proposal submitted by Baghdad."  LINK

MilitiaMan:  There it is again. The kurdistan share is to reach Erbil.. There is enough support now that they should have smooth sailing.. They have plenty of resources to cover a very healthy and strong currency.. imo !~ MM

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Samson:  Al-Rafidain announces that it will continue to grant advances to employees and security forces personnel

11th May, 2021

Al-Rafidain Bank announced, on Tuesday, that it will continue granting advances to employees and security forces' employees.

And the media office of the bank said in a brief statement, of which Mawazine News received a copy, that "advances are granted through the bank's branches scattered in Baghdad and the provinces while taking preventive measures from Corona."     LINK

MilitiaMan:  Paying advances is telling.. They must have change coming to cover the salaries. I'll bet because they will be retro activated to the 01/01/2021.. imo ~ MM

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Samson:  Trade invites importers to check with the tax authority for tax stamps

11th May, 2021

The General Company for Exhibitions and Commercial Services of the Ministry of Commerce called, on Tuesday, for importers to review the General Tax Authority / Financial Section to obtain tax stamps.

The General Director of the General Company for Exhibitions and Commercial Services, Sarmad Taha Saeed, said, "This invitation came based on the book of the General Tax Authority and Paragraph III A of Article 18 of the Federal Budget Law."

He added, "The aforementioned article stipulates the necessity to collect a tax stamp, and not to allow the passage of trucks carrying materials not stamped with a tax stamp."   LINK

MilitiaMan:    Interesting timing or is it normal? The fact remains is they have stipulated that having a tax stamp or don't pass go.. Change is in the wind. We have been told today they have had successes in the taxes, cutoms, fees, etc., at the borders.. A very big income stream no doubt. imo ~ MM