KTFA Members "News and Views" Saturday PM 3-12-2022

KTFA:

MilitiaMan:  That is a dandy Samson.. You nailed.. ~ MM

Samson:  What Is Required From The Federal General Budget For 2022

12th March, 2022 by Dr. Bilal Al-Khalifa

Unfortunately, in most of the past years, the approval of the Federal General Budget Law was after several months had passed since the beginning of the year and the spending had gone according to the Financial Management Law with the rate of 1/12 of the previous budget for that year.

An example of the delay in approving the budget is in 2008 the budget was voted on on 13/4/2009, in 2010 on 26/1/2010 the vote was taken, in 2011 it was on 2/3/2011, and in 2014 on 15/5 /2014, 2017 on 9/1/2017, 2018 2/4/2018, and in 2021 voting was on 3/31/2021.

We note that the budget is usually delayed only in 2017, which was on the first day of the year, and in 2014 and 2020, a budget was never approved.

This year as well, and so far, the budget for this year has not been approved or written, but the budget law must be moved as soon as possible because many projects are on hold, as well as people's livelihoods.

In previous budgets, all budgets were item budgets, completely copying the ones that preceded them, with one thing changing, which is the price of a barrel, which will be the basis for calculating the volume of spending and the deficit and therefore the amount of money that is borrowed. Except last year, the budget included something else, which is the exchange rate of the US dollar against Iraqi dinar.

The important thing is that the budget is a budget of programs and plans, and that it exceed the mistakes that were made in the past by maximizing spending, not maximizing non-oil revenues that we promised in the reform white paper.

In the year 2020, it was a year free of the general budget due to the great turmoil that Iraq witnessed and the change of government, but the volume of spending for that year was 72 trillion dinars, but the budget of 2021 was shocked by the size of the expected spending, which is 129 trillion dinars with a deficit of 28 trillion dinars, and it was supposed to be either it is the size of the previous spending or slightly more than it as a result of the inflation that occurs, which is normal, but the jump in spending was very large.

And we saw the Minister of Finance declaring that the volume of spending that Iraq witnessed for the year 2021 is 111 trillion dinars, with a deficit of 28 trillion in revenues.

Therefore, several points must be taken into account when preparing the next general budget

1 - Reducing public spending from the previous year, and this means the success of the reform plan, otherwise it is to follow the approach of previous governments in failure.

2 - Increasing non-oil revenues and reducing dependence on oil revenues, which constitute more than 90%.

3- Giving attention to investment projects in the non-oil sectors.

4- Reducing government subsidies for electricity and relying on the privatization of some of its sectors

5- Reducing spending in security institutions that take a very large proportion of the budget

6 - Putting a penal condition on the region in the event of non-compliance with the provisions of the law (the Federal General Budget Law) because the previous years and in all of them the region does not abide by the law, and this was stated by the Minister of Finance in Parliament when hosting him and said that the region is the cause of the deficit because it is not obligated to deliver oil revenues and others for the central government

7 - Cancellation of tax and customs exemptions for goods and merchandise from neighboring countries, as is the case in the Iraqi-Jordanian agreement because it reduces non-oil revenues.   LINK

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MilitiaMan:  There is the fire under his behind.. Sadr is all for getting the ball rolling with the GOI and the Exchange Rate. ~ MM

Samson:  Al-Sadr outlines the formation of the new Iraqi government

12th March, 2022

Two identical political sources revealed, on Saturday, that the meeting of the leader of the Sadrist movement, Muqtada al-Sadr, with the delegation of the coordination framework, which includes Shiite forces, led to an agreement on naming Riber Ahmed, the Kurdistan Democratic Party candidate, as president of the Republic of Iraq, in addition to defining a consensual mechanism through which a president is chosen. New for the next federal government.

He was missing from the coordinating framework, including Hadi Al-Amiri, Faleh Al-Fayyad, Ahmed Al-Asadi, accompanied by the Speaker of the Iraqi Parliament, Muhammad Al-Halbousi, and the head of the Sovereignty Alliance. He met earlier today with the leader of the Sadrist movement Muqtada Al-Sadr at the latter's headquarters in Al-Hanana district in Najaf.

The two sources told Shafaq News Agency that the meeting in Al-Hanana agreed to choose Riber Ahmed, the Kurdistan Democratic Party candidate for the post of President of the Republic, according to an appropriate vision and the participation of the Patriotic Union of Kurdistan in the next government.

They also said that there is no agreement so far on the candidate for the presidency of the Council of Ministers, referring to the Supreme Committee between the Sadrist movement and the coordination framework, which will hold a meeting in the coming days to discuss a consensual selection mechanism for the position of the head of the next federal government.

With regard to the economic situation, Al-Sadr informed the framework delegation of the need to find solutions to the economic crisis in conjunction with the rise in food prices and control of the market while finding a study to reduce the exchange rate of the dollar against the Iraqi dinar, according to the two sources.  

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In previous budgets, all budgets were item budgets, completely copying the ones that preceded them, with one thing changing, which is the price of a barrel, which will be the basis for calculating the volume of spending and the deficit and therefore the amount of money that is borrowed. Except last year, the budget included something else, which is the exchange rate of the US dollar against Iraqi dinar.  LINK

Clare: Missiles target Erbil airport, the US consulate and Shaqlawa road

PM 5:45:34 3/12/2022.Baghdad / Obelisk:

Eyewitnesses reported that rockets fell in the vicinity of Erbil Airport
.Eyewitnesses said that the bombing caused material damage to Kurdistan 24 channel
In the same context, sources talked about the fall of missiles that landed near commercial and
.residential complexes

.Intense flying was heard in the skies of Erbil, with air navigation suspended

Sources: The missiles targeted Diana - Harir Airport - Shaqlawa Mullah Omar Road - Erbil Airport
- and the new American consulate. The..missiles are not Katyushas because the explosions were very powerful According to Kurdish channels, the missiles were long-range, and the number of explosions in Erbil .alone was 14  LINK

Some "Friday News" Posted by Samson at KTFA 3-11-2022

KTFA

Samson:  Iraq succeeds in bringing bank services covering 5 continents around the world

11th March, 2022

First Abu Dhabi Bank announced plans to expand its international operations by opening a representative office in Iraq, as part of its international growth strategy aimed at facilitating trade flows in the region and enhancing its financial services to international clients.

The UAE has important trade relations with Iraq; The volume of bilateral trade between the two countries exceeded $13.11 billion in 2020. Based on its position in the region and its strategic presence on five continents, the international network of First Abu Dhabi Bank currently covers about 70% of Iraqi crude oil export destinations around the world.

First Abu Dhabi Bank in Iraq will mainly provide its services to government agencies, Iraqi public companies and institutions, and institutions looking to do business in Iraq. The office will contribute to enhancing the diversified services provided by First Abu Dhabi Bank to its customers, and supporting trade across the most prominent markets in the Middle East and North Africa and global markets.

Hana Al Rostamani, Group CEO of First Abu Dhabi Bank, said: “The opening of a representative office for First Abu Dhabi Bank in Iraq is another step in the bank’s strategy to expand its business internationally, and we affirm our commitment to enhancing trade flows between the UAE and developing economies. By taking advantage of our strong business in the UAE and the region, and by focusing on selecting elite clients, First Abu Dhabi Bank will contribute to providing opportunities that support the growth of the Iraqi economy, including continuing the necessary investments to improve and rebuild the country’s infrastructure.”

The International Business Network of First Abu Dhabi Bank, covering five continents, provides the best global financial relationships and expertise to support the businesses of local, regional and international companies that wish to develop their businesses at home and abroad.  LINK

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Samson:  Iraq is the fifth in the Arab world in gold reserves..Who is the first?

11th March, 2022

Iraq ranked fifth in gold stocks on the ranking of Arab countries for the year 2021 based on data from the World Gold Council.  

According to the World Gold Council, global gold reserves fell by 12 tons in January, continuing to switch between net purchases and sales in recent months. The bulk of the January drop was caused by big selloffs from Kazakhstan (17 tons), while Russia (3 tons), Poland (2 tons), Uzbekistan (1 tons) and Mongolia (1 tons) also saw a decrease in gold reserves in January.   

Among the Arab countries, Saudi Arabia ranked first in gold reserves, which amounted to 323 tons, according to data from the World Gold Council, followed by Lebanon, with 286 tons, and Algeria, with reserves of 173.6 tons.  

Gold plays an important role in managing the reserves of central banks, as they are the most important owners of the yellow metal, which it holds as a store of value and a guarantee to redeem promises to pay depositors and stockholders or their trading peers or to secure the currency.   LINK

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Samson:  With the participation of 170 local and foreign companies.. The launch of the activities of the Sulaymaniyah International Shopping Festival

11th March, 2022

The activities of the International Spring Festival were launched today, Friday (March 11, 2022) in Sulaymaniyah Governorate, in its fourth edition, which will last for ten days.

The events, which will continue until the 20th of this month, include a display of food and commercial products, with local and international participation.

Officials of the events held regularly talk about the festival's goal of "helping citizens to obtain the goods they need at the most appropriate prices." "The festival, which was launched under the supervision of the Sulaymaniyah Governorate, its Chamber of Commerce and Industry, and the Union of Importers and Exporters," said the director of the exhibition's relations and media, Shawqi Omar Mahmoud, during a press conference, attended by Shafak News Agency correspondent, "on the occasion of the advent of the month of Ramadan and holidays." Nowruz". He pointed out that "the festival, which is held on the land of the Sulaymaniyah International Fair, displays foodstuffs, handicrafts, cosmetics, furniture, detergents, types of clothing and shoes, and through direct sales from the producer and importer to the consumer."

Mahmoud also confirmed "the participation of 170 companies from all governorates of the country as well as the region, as well as an active contribution from the countries of Egypt, Syria, Lebanon, Turkey and Iran."

The festival will be held on an area of ​​10,000 square meters, and the external space has been used to display local handicrafts, according to the exhibition's media director, who stressed "its contribution to reducing the burdens on citizens in light of the wave of price hikes in the country."

The third international festival, which was held in the same month last year, witnessed the participation of about 200 companies from Turkey, Egypt and Iran, in addition to local Iraqi companies working mostly in the field of foodstuffs.  LINK

Samson:  The Arab Monetary Fund signs a memorandum of understanding with the International Payments Corporation of India to support the growth of cross-border payments by linking the Buna Platform for Arab Payments and the Unified Payment Interface (UPI) to enhance economic, financial and trade links between India and the Arab Region

10th March, 2022

The memorandum of understanding aims to build a strategic partnership between the “Bunna” platform for Arab payments and the International Payments Corporation in India to achieve harmonious interdependence between their instant payment services

This partnership reinforces the strategic role of the Buna platform for Arab payments as a major outlet for payments linking Arab countries to global markets

Today, Mr. Mahdi Manea, CEO of the Regional Corporation for Arab Payments Clearing and Settlement (“Bunni” Arab Payments Platform) owned by the Arab Monetary Fund and Mr. Ritesh Shukla, CEO of the International Payments Corporation of India (NIPL) signed today.  The international arm of the National Payments Corporation in India, on a memorandum of understanding to cooperate on building a strategic partnership between the “Bunna” platform for Arab payments and the International Payments Corporation in India, aimed at providing innovative solutions in the field of payments that achieve the interconnection between instant payment services at each of the “Bunna” platform. Arab Payments and International Payments Corporation of India. The interconnection of the two parties allows participating financial institutions to exchange cross-border payments securely, affordably and efficiently, 24 hours a day, 365 days a year

The signing ceremony was held at the headquarters of the Arab Monetary Fund in Abu Dhabi, United Arab Emirates, in the presence of His Excellency Sanjay Sudhir, Ambassador of India to the United Arab Emirates, and His Excellency Dr. Abdul Rahman bin Abdullah Al Hamidi, Director General and Chairman of the Board of Directors of the Arab Monetary Fund

The upcoming alliance between the Arab Payments Buna platform and the International Payments Corporation in India represents a strategic opportunity for the two payment systems to build on the advanced capabilities of their instant payment services, with the aim of spreading the benefits of instant cross-border payments to citizens and companies and supporting the growth of trade exchange, financial and investment flows between the Arab world and India

On this occasion, His Excellency the Director General and Chairman of the Board of Directors of the Arab Monetary Fund,  Dr. Abdul Rahman bin Abdullah Al-Hamidi, praised the strategic cooperation with the International Payments Corporation in India. His Excellency stressed the importance of the joint role of the National Payments Corporation in India and the Arab Monetary Fund to launch initiatives that contribute to enhancing financial inclusion and keeping pace with the financial needs of individuals and the business community, in line with the objectives of the two institutions to support economic growth and provide appropriate means to achieve the welfare and social security of citizens in the Arab world and India

His Excellency Dr. Al-Hamidi added : “Promoting cross-border payments is a cornerstone for the growth of financial, trade and investment relations between countries of the world. The success of the Buna Platform for Arab Payments and the International Payments Corporation in India will lead to offering joint and advanced services to facilitate the flow of funds between institutions participating in the two payment systems, to building a safe and effective corridor for payments, which constitutes a major driver for the growth and deepening of economic relations and investment and trade opportunities between the Arab region and India, in order to reach all international markets.

This partnership constitutes a major station in the journey of “Buna” to enhance the use of its services for instant cross-border payment in Arab and international currencies, and its contribution to the development of Payment industry in the Arab region and at the international level

For his part, Mr. Ritesh Shukla, CEO of the International Payments Corporation of India (NIPL) , said: “The strategic partnership with the Arab Monetary Fund represents an important step in the implementation of our vision aimed at upgrading our model solutions in the field of payments to global markets. Our efforts are currently focused on providing advanced services in the field of cross-border payments through our instant payment system known as the Unified Payment Interface "UBI". We reaffirm that our partnership with the Arab Monetary Fund and the "Bunna" platform for Arab payments, will enhance the growth potential of UBI's activity in the field of cross-border payments

The UPI system of the National Payments Corporation of India ( NPCI ) ranks among the global payment systems, thanks to its ability to carry out personal money transfers and transfers between individuals and institutions in an easy, secure and efficient manner. The volume of remittances carried out by the UPI system during the year 2021 amounted to a total of 39 billion transfers, with a value equivalent to 940 billion US dollars, equivalent to 31 percent of the GDP of the Republic of India

It is worth noting that the "Buna" platform constitutes an integrated system specialized in providing clearing and settlement services for payments in Arab and international currencies, aiming to enable financial and banking institutions in the Arab region and beyond, including central and commercial banks, to send and receive inter-payments throughout the Arab region and abroad in a safe, reliable, affordable and highly effective manner.

 Buna offers participants state-of-the-art payment solutions that comply with international standards and principles and international compliance requirements. "Buna" contributes to enhancing opportunities for economic and financial integration in the Arab region and supporting investment links with trading partners in different continents.

 It is noteworthy that participation in the platform is available to all banks and financial institutions that meet the criteria and conditions for participation in it, foremost of which are the standards and procedures for compliance aspects  LINK

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Samson:  Goldman Sachs Warns Of 3 Severe Global Crises

10th March, 2022

While the Ukrainian war is raging, it seems that the global economy is on the verge of severe crises due to the embargo and mutual embargo between the parties to the conflict.

As the US ban on oil imports sparked prices, as oil jumped to its highest level in 14 years, which was reflected in analysts' expectations that global inflation would jump to record levels.

On the other hand, it seems that Russia is also threatening to ban its exports to countries that have imposed sanctions on the Russian economy, as it waved the oil, gas and minerals paper that represents Laurasia as a striking power such as nickel, palladium, copper and of course oil and gas.

Energy crisis

Goldman Sachs (NYSE:GS) has warned that the Russian invasion of Ukraine and Western actions against Moscow exposed the global economy to an epic energy shock.

The US bank said in a note carried by CNN that the uncertainty about how to resolve this conflict and the oil shortage is unprecedented. "Given Russia's key role in global energy supplies, the global economy may soon face one of the largest energy supply shocks ever, indicating that the scope of the shock is likely to be enormous," the US bank added. He explained that the Russian invasion may block three million barrels per day from exports of oil and Russian petroleum products.

The US House of Representatives approved President Joe Biden's decision to ban the purchase of Russian oil, amid calls by representatives of both parties to apply greater sanctions against Moscow over its invasion of Ukraine. The bank warned that the potential results are still sharp given the threat posed by high oil prices to the global economy, noting that “Brent” crude may trade at $ 115 next year, compared to previous estimates of $ 105.

Food crisis

Goldman Sachs warned that grain prices could rise further as the war in Ukraine and sanctions against Russia upended supplies from the Black Sea region.

Goldman said disruptions in shipping lines, rising input costs and concerns about planting new crops in Ukraine had pushed the global grain market into the biggest shock since the 1970s grand robbery. That period was associated with a sharp increase in prices after it became clear that the Soviet Union had struck a deal that effectively wiped out American wheat stocks.

Goldman Sachs raised its forecast for corn, soybean and wheat prices, as it expects the price of corn to reach $7.75 a bushel by summer. While Goldman expected the price of soybeans to reach 17.5 dollars per bushel, while wheat may reach 12.5 dollars per bushel. We are seeing clear upward pressure in the data curves around the world, the US bank analysts added.

Analysts said their expectations remain bullish for new crop contracts in cotton, corn and soybeans, with the possibility of a significant increase in prices due to unfavorable weather conditions in the United States, or the Ukrainian turmoil.

Growth crisis

Goldman Sachs forecast in a report for clients that the eurozone economy will contract in the second quarter due to the war in Ukraine, and inflation will rise towards the 8% level.

According to the bank, financial conditions have become more tight and the trade implications are more significant, and the potential for production cuts has increased amid energy supply disruptions. finished/25h

Households will suffer more than initially expected due to higher costs related to oil and gas, Goldman Sachs said.

The bank expects the eurozone economy to grow 2.5% this year, down from 3.9% previously, and output to rise to 2.2% in 2023.  Goldman Sachs expected inflation in the euro area to reach its peak at 7.7% in July, and to reach an average of 6.8% in 2022. LINK

Petra, MilitiaMan and KTFA Members "News and Views" 3-9-2022

KTFA:

Deputy: Changing the exchange rate does not come with political speeches

9th March, 2022

The State of Law coalition confirmed, on Wednesday, that changing the dollar exchange rate does not come with political speeches.

The representative of the state of law, Thaer fearful, said in an exclusive interview with the agency (Mawazine News), that the issue of changing the dollar exchange rate is purely scientific, because any country exposed to an economic crisis resorts to solutions, including changing the exchange rate, internal or external borrowing, or increasing invisible taxes and others.

He added, “The exchange rate cannot be changed with a political discourse, and the Federal Court has the right to intervene in this file unless economic matters arise in the country, where there are economic variables.”   LINK

Suzie:  Do we expect Iraq to seat their gov’t anytime this month?  It would seem they’re anxious to do business internationally and they certainly can’t do it with a program rate, nor open and fulfill their budget for the good of Iraq and its people, just my opinion.

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Samson:  Integrity announces the outcome of its work within a month.. 65 arrest and recruitment orders against high grades

9th March, 2022

The Integrity Commission announced, on Wednesday, the outcome of its work within a month, confirming the issuance of 65 arrest and recruitment orders against high grades.   

According to a schedule, “Nas” received a copy of it (March 9, 2022), the Integrity Commission carried out 53 seizures during January 2022.  

The table indicated that 40 defendants were arrested in flagrante delicto, and 65 arrest warrants were issued against officials for the right of current degrees, indicating that 81 convictions were issued, while the number of those convicted of judicial rulings reached 411 defendants.     LINK

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Samson:  Kurdistan Regional Government: We are bound by the oil and gas law and contracts with international companies

9th March, 2022

The Kurdistan Regional Government said on Wednesday that it is continuing to work on the oil and gas law, despite its oversight by the Federal Supreme Court (the highest judicial authority in Iraq).

The spokesman for the regional government, Jotiar Adel, said in a conference held today, that “the Federal Court’s decision tried to target the constitution because justifying its articles is not within its jurisdiction.”

He added, “We are committed to the oil and gas law of the region, and the contracts that we concluded with companies and buyers, because we have legal and financial obligations, as is the case with the other side.”

Adel continued, “We are in a financial position that is not good, and how does the federal government prevent the export of oil and gas from the region, and does not send the monthly financial advance to finance salaries?”, adding, “We are ready to negotiate in order to reach a solution to this issue in accordance with the constitution and the true partnership that has not been achieved.” Unfortunately”.  LINK

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Scarlett10:  Well if you have a financial obligation don’t you think it’s time to change your rate ? This is craziness. So much talk and nothing happening.

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Samson:  Al-Alawi : It Was The Successive Governments That Caused The Collapse Of The Iraqi Economy

9th March, 2022
The head of the Iraqi Economy Alliance, Uday Al-Alawi, confirmed today, Wednesday, that it was the successive governments that created the crises in the country, especially the last government, and brought it to the brink of economic disaster.

Al-Alawi said in an exclusive statement to Earth News, “The crises created by the government: the increase in the number of poverty in frightening numbers, the ignorance of society in an unprecedented way in the history of Iraq through electronic study, the inactivity of government sector employees and laziness in performing duties, disguised unemployment in state institutions Chaotic administration in multiple files, including the economic file, the flight of more than 150 billion dollars from the capital of Iraqi traders investors out of Iraq due to ill-considered and unjustified decisions, 35 percent of traders and importers of materials turned their trade into real estate because of government decisions.

He added, “Therefore, we are currently seeing an unjustified rise in real estate in Iraq with frightening numbers, and a deliberate absence of a plan in Iraq with long-term and medium-term strategic management.”

Al-Alawi pointed to “the loss of hope by the people towards reforming the situation inside Iraq, the people’s distrust of the government, and the loss of shocking figures from the Iraqi economy as a result of the weak monetary value of the Iraqi dinar due to the exchange rate change law, and the loss of many infrastructure projects that were consumed due to irresponsible administrations.”  LINK

Samson:  White House: Biden will order the start of work on creating a digital US dollar

9th March, 2022

US President Joe Biden will order, on Wednesday, government agencies to begin work on creating a digital US dollar, White House officials said.

“The implications of the prospect of issuing a digital dollar are profound,” one of the officials told reporters, stressing the crucial role of the US currency in the global economy. “We must be very cognizant about this analysis because the implications of our move in this direction are profound for the country that issues the world’s primary reserve currency,” he added. The official noted that the United States “can move quickly, but we can also move in a smart and comprehensive way.”

According to a White House statement, the United States will study the potential benefits and risks of creating a digital dollar, with “pressure research and development on potential common digital currencies in the United States,” amid the massive rise in private cryptocurrencies such as Bitcoin. The White House said about 16 percent of American adults, about 40 million people, have invested in, traded or used cryptocurrency. However, the official said, “Without oversight, the explosive growth in the use of cryptocurrencies will pose risks to Americans, to the stability of our business, our financial system, and our national security.” Another official stressed the need to ensure that all Americans benefit, because “previous forms of financial innovation eventually hurt American families while making a small group of people extremely wealthy.”

The US Federal Reserve released a report in January indicating that digital currencies could offer potential benefits to US consumers and businesses, but said it was not clear that they would outweigh the potential risks. Under Biden’s order, US government agencies will consider preventing money laundering as well as efforts to use digital currencies to evade financial sanctions.  The world’s largest economy will join more than 100 countries that are exploring or launching pilot programs with their central bank digital currency (CBDC), including the Chinese digital yuan. Biden’s executive order is expected to call on agencies, including the Treasury Department, to examine issues including consumer protection, financial inclusion and the use of digital assets for illicit activities.

Officials downplayed competition from Beijing, saying that the dollar “was and will be critical to the stability of the international monetary system as a whole”, and that those issued by foreign central banks “do not threaten this dominance.”

The global rise of cryptocurrencies and the increasing use of digital payments has boosted interest in formal digital money, and major central banks around the world are exploring this possibility, with Nigeria in October launching its own virtual currency, while El Salvador has allowed bitcoin to serve as legal tender.

Digital assets, including cryptocurrencies, have witnessed tremendous growth in recent years, as the market value exceeded 3 trillion dollars last November, while 5 years ago it was equal to only 14 billion dollars.  LINK

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MilitiaMan:  U.S. Department of the Treasury

Office of Public Affairs

Press Release:             FOR IMMEDIATE RELEASE

October 13, 2021

Contact:                      Alexandra LaManna; Press@Treasury.gov

 READOUT: Secretary of the Treasury Janet L. Yellen’s Meeting with G7 Finance Ministers and Central Bank Governors

WASHINGTON – Secretary of the Treasury Janet L. Yellen participated in an in-person meeting of the G7 Finance Ministers and Central Bank Governors today. G7 Finance Ministers applauded the historic deal between 136-nations that will reshape the international tax system and equip the global economy to meet the needs of the 21st century.

Along with her counterparts, Secretary Yellen endorsed the G7 Public Policy Principles for Retail Central Bank Digital Currencies (link) and the G7 issued an accompanying statement on digital payments (link). She also expressed her strong support for efforts to channel Special Drawing Rights (SDRs) to further support vulnerable economies, including the rapid establishment of a new trust fund at the IMF to support economic transitions related to pandemic preparedness and climate change. G7 Finance Ministers also discussed the macroeconomic implications of climate change and the importance of resilient global supply chains.

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MilitiaMan:  Fairly sure this was a key starting point. There are 136 countries that signed onto the digital international taxation and cross border payments.. So, starting to work per President Biden is likely to be further along than mentioned.. imo ~ MM

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“Secretary Yellen and her counterparts also continued productive discussions about international tax. Secretary Yellen noted the landmark agreement of virtually the entire global economy to end the race to the bottom on corporate taxation, and how 136 nations, representing 94% of the world’s GDP – including all 20 nations in the G20 – agreed to a new and specific set of provisions to uniformly tax the income of multinational companies, including a global minimum tax.

Secretary Yellen reiterated her and President Biden’s focus on ensuring democracies can deliver for our people. She noted that this deal will mobilize the resources for the global economy to address climate change and reduce economic inequality, protect American jobs from the race to the bottom, and deliver for the middle class and working people at home and all over the world.”

DCDriver:  Now if they would just back it with Gold we would be in good shape IMO

Samson:  Iraq invites French companies to implement projects in Baghdad

9th March, 2022

Mayor of Baghdad Alaa Maan discussed, on Wednesday, with the French Ambassador to Iraq (Eric Chevalier) prospects of joint cooperation between Baghdad and Paris, while calling on him to involve sober French companies to implement cultural, urban and planning projects in the capital, Baghdad.

A statement by the secretariat, which Mawazine News received a copy of, stated that, “The Mayor of Baghdad confirmed during his meeting with the Ambassador Al-Fonsi that the French Cultural Center represents an intellectual and cultural center in Baghdad, noting that” there is a major vision within the Baghdad Renaissance project that culture is a main pillar that must be established in Baghdadi society. The statement continued, “It is important to cooperate with large cities such as Paris, which is the glow of culture in France, which represents the Francophone culture.” world culture like Picasso, sociologist Max Weber, and Mother Teresa.”

The Mayor of Baghdad also called for cooperation with the French side in the cultural and economic sectors and the involvement of major French companies in the field of the suspended train and Baghdad metro, and that the French architectural and consulting companies have an opportunity to work within the limits of the Municipality of Baghdad, especially the planning projects and the basic design of the city at the level of establishing advanced designs, stressing that “it is necessary inclusion of the suspended train project in the 2022 budget and accelerating the implementation of the project due to its importance and the time it requires, pointing out that “the Prime Minister has great interest in the project and there is coordination with the Minister of Transport to allocate sufficient funds for it.

“In the evening, as well as the participation of the activities of the French Cultural Center to present its artistic and cultural performances in Al-Mutanabbi Alley.

For his part, the French Ambassador expressed his strong desire to visit Al-Mutanabbi Alley, indicating that he “A cultural legend in Baghdad and the world. He continued, “We know the extent of your interest in the cultural and economic aspect, which is important in coloring the city, which must continue. He also expressed the willingness of French companies to participate in the implementation of reconstruction and planning projects and the implementation of the suspended train, as well as his country’s desire to establish a museum in the city of Baghdad.”  LINK

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Petra:  I find this very interesting as I look at the myriads of countries that have “aligned” themselves with business opportunities in Iraq with invites such as this to “invest” and yet, to my knowledge, nobody is jumping in with both feet. 

Clearly there is a reason why so many large countries, and with it, their organizations continue to “talk” but with little or no action.  

Why?

Because Iraq continues to present themselves as a “Great Place to Invest” but as yet, have not made the commitment to the IMF and any country that works within that paradigm to establish full Article 8 compliance. 

Yes, they are using Article 8 tools, but until they formally adopt full and final efforts in being Article 8 all such discussions are cordial and friendly but no money is being ingested into the country. 

Because, Freedom of Capital Movement comes with full compliance and the currency, whether NEER or REER has yet to be established closing the loop on Full Article 8 compliance!

Who would invest funds knowing they could “disappear” into the labyrinth known as Iraq without key guarantee’s within the IMF construct and framework?  NOBODY!   

So, Iraq, all the discussions are great, but that doesn’t bring a dime into your country for infrastructure or development until investors and secondary market players KNOW their money is going exactly where it was intended and IMF protocols are followed to the law! 

Get your house in order and the countries you have met with will return….with the checkbook!!!   

All IMO….PETRA

MilitiaMan Tuesday Afternoon "Other Intentions?" 3-8-2022

KTFA:

Samson:  Brent Crude Reaches $128 A Barrel

8th March, 2022

The price of Brent crude rose more than 4 dollars, today, to reach 127.86 dollars per barrel.

At the same time, US crude futures rose more than $3, and the price reached $122.79 a barrel, according to “Reuters”.

Analysts expected that oil prices will continue to rise more than they are now this week due to the delay in concluding the Iranian nuclear talks and thus the possibility of Iranian crude oil returning to the already turbulent global markets.

Amrita Sen, co-founder of the Energy Aspects Research Institute, said, “Iran was the only factor supporting the price drop that is hanging over the market, but if the Iranian agreement is delayed now, we may consume stocks more quickly,” according to “Reuters”.

Samson:  Russia: Oil prices may reach $300 a barrel

7th March, 2022

Russian Deputy Prime Minister Alexandernovak said on Monday that oil prices could jump above $300 a barrel, if the United States and Europe ban crude imports from Russia.  

“It is absolutely clear that the rejection of Russian oil will lead to catastrophic consequences for the global market,” Novak said in a video statement broadcast by Russian television.    

He continued, “The jump in prices will be unpredictable. It (the price) will reach $300 a barrel, if not more.”    LINK

MilitiaMan:  Banning just began today.. ~ MM

“The exodus continues as President Joe Biden announced a ban on the U.S. import of Russian energy, saying the U.S. is “targeting the main artery of Russia’s economy.””

https://www.yahoo.com/news/ukraine-skeptical-russian-plans-allow-082034771.html

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

Samson:  The Federal Court summons the Minister of Finance and the Governor of the Central Bank

8th March, 2022

Local media reported, on Tuesday, that the Federal Court decided to summon the Minister of Finance and the Governor of the Central Bank, to appear before it in the next session, against the background of a lawsuit to raise the exchange rate of the dollar.

The Federal Court had held its session regarding the “32 federal” lawsuit regarding raising the exchange rate and establishing the Sovereign Wealth Fund.

The court decided to postpone the hearing to March 14, in a special session in which the Minister of Finance and the Governor of the Central Bank will attend, according to local media.   LINK

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

The Federal Court postpones hearing the lawsuit to restore the dollar exchange rate to its predecessor until next Monday

8th March, 2022

The Federal Supreme Court decided to adjourn the hearing of the case No. (32/Federal/2022) regarding the re-exchange of the US dollar in relation to the Iraqi dinar to its previous amount of (120) thousand dinars per 100 US dollars until 3/14/2022.

The reporter explained that “the court decided to postpone for the purpose of Inform the Minister of Finance and the Governor of the Central Bank of Iraq to attend the next session.  LINK

Samson:  A session of the Federal Court regarding the lawsuit against the dollar exchange rate and the Sovereign Wealth Fund

8th March, 202

On Tuesday, the Federal Supreme Court held its session related to the “32 Federal” case regarding raising the exchange rate and establishing the Sovereign Wealth Fund.  

The court said in a brief statement that “Nass” received a copy of it (March 8, 2022), that it “has held its session regarding the (32 federal) lawsuit related to raising the exchange rate and establishing the sovereign wealth fund.”     LINK

**

Samson:  A Deputy commends the reform paper submitted by the Minister of Finance and calls for its implementation

8th March, 2022

Today, Tuesday, Representative Alia Nassif stressed the need to ration resources in a way that prevents wasting them on thieves and the corrupt, while she welcomed the proposal to “support the poor, the weak and the vulnerable groups” presented by the Minister of Finance.

Nassif said in a statement received by the National News Center that “presenting this reform paper expresses a sense of responsibility towards our people, especially the fragile class, families without breadwinners, families of martyrs and wounded, today there are unfortunately thousands of families who do not find their daily strength.”

She pointed to “the necessity of rationing resources in a way that prevents wasting them on thieves and the corrupt, which will reflect positively on the income of the poor and provide food security and social security.”

Nassif called on the executive and legislative authorities to “direct implementation of the reform paper and not to make it a formal paper like its predecessors, while keeping it away from consuming political bidding.” LINK

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

MilitiaMan:  The interesting issue is they postpone the court until next Monday to hear the case of the Dollar Exchange rate and a Sovereign Wealth Fund.

 The other interesting thing imo is they are suggesting that the case is to restore the Dinar back to 120,000 / 100 USD from it’s present 1460. Just barely back to where it was 12/19/2020, a 22-23% move..

Was that there goal to inflict pain and suffering from the devaluation on to the citizens and with the harshest effect to be on the poor? If so they did a good job of it.

Could there be more to the story that will unfold between now and the meeting on 03/14/2022. We know there were other reasons too, debt payments to kuwait, etc..

That raising of the exchange rate is nothing new, a reversion will be. The problem I see with the reversion back to 120,000 / 100USD is that it really doesn’t help they poor. The were per before the devaluation and still are and even more so.

Going from poor to poorer and back again to poor is a double slap in the face, imo. I am fairly sure the citizens will feel it too, on both sides. That will not be the purchase power they were promised prior to the devaluation nor the promises of late. 

Lets think about it though. They need the court to sort the exchange rate change out and then talk about the Sovereign Wealth Fund (SWF)?

Are we to believe since they didn’t have SWF before at 1,190 that one will be feasible with a reversion to only 1190 again?

Or could it be that they have other intentions, as in the project to delete the zeros. If so, then there would be the wealth from a real valuation of the countries assets that takes into consideration the automated taxes tariffs, customs, fees, liquid natural gas production, Sulphur, gold, reserves domestic and foreign, agriculture, tourism, etc.? Not far from now we will know the answers.

I do like the fact that they want the direct implementation of the reform paper to be direct and keeping it from the consuming political bidding powers. In other, words the politicians need to keep their hands off. It is to be for the good of the people.. imo ~ MM 

https://www.investopedia.com/terms/s/sovereign_wealth_fund.asp

KTFA CC with Frank26 "Join Me On The Blue Couch Tonight" 2 Parts.

KTFA Monday Night CC-Part 1

Frank26:  3-7-22…..JOIN ME ON MY BLUE COUCH TONIGHT

Frank26:  REMEMBER ALL THE FOLLOWING IS IN FRANK'S OPINION

RED= HIGH ALERT

This video is in Frank’s and his team’s opinion only

Frank’s team is Walkingstick, Petra, MilitiaMan and Eddie in Iraq

Playback Number: 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=_PXoBoZThEA

Part 2 VIDEO 3-7-22

https://www.youtube.com/watch?v=A-QFAtOpWYc

MilitiaMan Sunday PM "The New System is Transparent and Accurate" 3-6-2022

KTFA:

MilitiaMan:  I think this article is smoke. The guy has no basis to support the view.. Let alone a track record on the internet for anything.. imo.. !  If anyone has info him that I seemingly  don’t easily find, l would like to see it.. ~ MM

Samson:  Deputy: The government will be formed after Eid Al-Fitr

6th March, 2022

A member of the House of Representatives, Yasser Watut, identified today, Sunday, the “node” that stands as an obstacle to the formation of the government.

Watout said in an interview with the official “Al-Sabah” newspaper, which was followed by Mawazine News, that “the information confirms that the government will be formed after the blessed Eid al-Fitr,” adding that “the node that currently stands before the formation of the government is the choice of the president of the republic.”

He continued, “The political blocs are determined to build the country despite the difficulty of the next stage and the accumulations that occurred as a result of the negatives of the past stages,” adding that “to proceed with the construction path is forward and without return.”    LINK

Samson:  Kurdistan decides to reorganize fees and taxes and activate the electronic revenue system

5th March, 2022

The Economic Council of Kurdistan Region approved today, Saturday, a set of proposals related to reorganizing fees and fees for services collected from citizens.

The media of the Kurdistan government said, in a statement received by Shafak News Agency, that the Economic Council of Kurdistan Region held, today, a meeting under the supervision of the President of the Regional Government, Masrour Barzani, and the presence of Deputy Prime Minister Qubad Talabani

Indicating that during the meeting, a report on the reorganization of taxes and fees was discussed in Ministries and government departments and at the level of all governorates and independent administrations, which was prepared by the committee formed by a previous decision of the Economic Council for the purpose of reorganizing and reviewing fees and service fees, which government institutions collect, so that they again serve the citizens of the Kurdistan Region.

In light of this, the report reviewed, according to the statement, a set of necessary proposals towards reorganizing fees and fees for services collected from citizens, in a manner that takes into account the living and economic conditions of citizens benefiting from these services, as well as promoting commercial and economic prosperity.

Among the most important proposals included in the report are reviewing current laws and instructions, promoting work on creating an electronic system for recording public revenues, overcoming routine obstacles, and disseminating information about public revenues recorded in the electronic system for public opinion and indicating areas of expenditure.

The Prime Minister commended the committee’s work to perform its tasks professionally, and stressed the importance of promoting the adoption of the electronic system for managing government affairs, especially the registration of public revenues in a transparent electronic system and aspects of spending in a manner that enhances transparency and puts an end to corruption and waste of public money, and reduces redundant red tape in the process of transactions. citizens in this field.

After the discussions, the Economic Council approved the proposals submitted and implemented them within the framework of a well-studied plan and a clear implementation mechanism during which the responsible party is determined, the procedures to be taken and the time required for implementation.

In another aspect of the meeting’s agenda, the economic and financial situation was discussed, while emphasizing the necessity of regulating internal and non-oil revenues, provided that efforts will continue with the federal government to solve outstanding problems, at a time when the Kurdistan Regional Government will not hesitate to make every effort to secure the region’s budget and salaries. Its employees, the Economic Council also assigned the Ministry of Finance and Economy to take the necessary measures for the purpose of continuing the distribution of salaries.  

**********

MilitiaMan:  This article imo is a doozy. It is telling me they are now ready to trade outside the borders and with a digitized system the will be tracked outside of the corrupt hands.

I suspect the interlinking or implementation that was talked about this last week is gearing to be live in short order now with the Kurds having been sorted now.  I’ll bet they are sorted.

The guy below may have had something to do with it, lol.. Maybe not, but the fact that there is a threat to the FM and the CBI Governor one may question that.

The threat may have back fired and now we see the Kurds on board for digital borders.

That means to me there Kurds may have a chat about where did all the money go and why it was not reported?  Well, it will be now be sure.

The new system is going to be transparent and accurate.  So accurate that the Kurds are on board. If they weren’t they  could or may have consequences that likely  were not worth it.. lol

I’ll bet all those off shore accounts had interesting names on the accounts.. lol imo

This all bodes very well for our study. The outcome is likely to be very promising and quickly now. 

The will in my view be moving to shed the losses now. The longer they wait the more they lose. I have always made the claim that, “the longer they take the more money we make.”

With oil now $125+- a barrel, secures that. imo Lets see how they work this out.. They are working it out!!! The automation is proof they are!!!. imo. ~ MM

—————————

(Background, they have been at this since May 2021.) 

The ASYCUDA system is expected to be a game-changer in customs processing in Iraq and improve ease of doing business in the country. UNCTAD and Iraq signed an agreement on 27 May to help the country modernize and automate its customs”

Iraq and #ASYCUDA virtually signed an agreement for the modernization of its customs, the reform and automation of its procedures through the implementation of its latest version of ASYCUDA system.

@UNCTAD

@IraqiGovt

ASYCUDA Programme

@AsycudaProgram

Follow

@UNCTAD

Iraq‘s largest Technical Assistance Programme in Trade Facilitation.

Al-Salami continued, with reference to the Federal General Budget Law of the Republic of Iraq No. (23) for the year 2021, the two paragraphs (first) (fourth) of Article (16) of it required the automation of the customs system, import licenses and the collection of customs duties on the basis of what was sold of foreign currency through the currency sale window Documentary credits to importers of goods

A matter that the Governor of the Central Bank and the Minister of Finance did not abide by, and since the aforementioned act resulting from the difference in the amounts sold from the currency sale window from the imported goods constitutes a crime of intentional damage to public money and the citizen in accordance with Article (340) of the Penal Code Iraqi No. (111) for the year 1969

And since the Public Prosecution is entrusted with the protection of public money in accordance with Public Prosecution Law No. (11) for the year 2017, so we ask to move legal procedures for the financial waste that occurred in the foreign currency auction against both the Minister of Finance and the Governor of the Central Bank For the reasons mentioned above, and the lack of application of the laws in force, including the law Federal general budget. LINK

Taboola ad for the very bottom only

MilitiaMan Saturday PM "A Convergence of Things " 3-5-2022

KTFA:

MilitiaMan:  There is a convergence of things that are ongoing that suggest there are things moving quickly now.

The reduction in value of the currency on 12/19/2021 had a purpose and that purpose is over. The subject is clearly being talked about at length, that even included paying off repartitions to Kuwait and the lifting of Chapter VII sanctions.

Add in that oil has risen to about $120.00 per barrel and they are automating the provinces through AYSCUDA. The system was started to be implemented awhile back and as of this week they are implementing all provinces at the borders.

That income will be similar to and or equal to the oil revenues. All of which will support the exchange rate that will benefit the citizens.

MilitiaMan Cont…..Al – Sadr has requested that to get done more than once, just as PM Al-Kahdimi has. The advisor to the PM has stated that they need to do the same and with laws to back that up.

Well today we see the Finance Minister Allawi has submission of a draft law for that purpose today. We also see pressure applied for the 2022 budget as well, with respect to constitutional timing and laws. Notice the advisor suggests it will take a couple of weeks. Allawi apparently did it today.

Now take the political side of things and see that there is a convergence of thing that may have symbiotic relationship overall. But, the fact is the FM (GOI) is about the legality of the finance side of reforms and the CBI has the exchange rate side of things.

It is the CBI that will change the rate.

The FM will have the laws in place for the implementation of that rate once issued. 

The have the nominees for the Presidency and will have a vote tomorrow and the results may be done within three days from the the 6th of March, 2022.  Bear in mind the urgency we see from Sadr to help the citizens and without procrastination. and the quickness we witness from the finance minister today. So, they may not take the three days to show the presidency. 

With the Tripartite group having the most seats, the results will be a final nail to the coordination frame work, imo and thus, no hinderance for Sadr’s wants to benefit the citizens.

All of this is looking to be timed accordingly and with the draft law submission, it suggests to me the rate will proceed the GOI seating or at the same time, as they’ll need the new exchange rate to vote on for the HCL and to interlink the borders internally and externally.. imo..

The GOI should already be fully aware of all of this, and not play ignorant. When they do even the experts call them out on the matter.. It is show time..imo!! ~ MM

——————————-

(“Al-Sadr also called for “delivering a share of oil to every citizen according to a strict special system and without procrastination. Our demand for this has been going on for years,” calling on the Parliament and the Iraqi government to “work hard and diligently to achieve these points, each according to his powers.”)

Shankali added, “Today’s session was a clear message to all political blocs on the strength of the tripartite alliance, and its ability to proceed with its program to elect the president of the republic and form the next government.”

He explained that “today’s message from the presence of 265 deputies and the vote of 203 deputies is very clear, that the tripartite alliance project is going to form the government,” noting that “Reber Ahmed is the Kurdistan Democratic Party’s candidate for the presidency, and he is also the tripartite coalition’s candidate for the position.”

LINK

——————————– 

Clarification From The Central Bank Regarding The Exchange Of The Dollar And Money Laundering

The exchange rate change came to remedy the gap between the real value of the national currency (the dinar) and its nominal value, as the dollar was calculated at a low exchange rate, which gives  A high competitive advantage for imported goods and services, which prevents the rise of the national product, while raising the exchange rate constituted a barrier to the competitive importer of the national product equivalent to the rate of change in the exchange rate (about 23%).  

 It is worth noting that the decision to change the exchange rate is a national strategic decision that is not linked to interim conditions, and that the negative results that may have resulted from it, can be avoided by financial and governmental action to support vulnerable groups and improve the ration card and not retract this important decision.  With respect.  LINK

“In economics, the nominal value is the unadjusted value of an asset without taking into account deductions and premiums, such as expenses, taxes, and inflation. The rise in the price level signifies that the currency in a given economy loses purchasing power (i.e., less can be bought with the same amount of money)..” (Raise the rate and the opposite is the effect to the vulnerable groups noted above. imo ~ MM)

——————————–

Expose the impact of the delay in approving the budget on investment projects

the former Director General of Financial Supervision, Salah Nouri, confirmed the government’s violation of the constitution regarding the delay in approving the general budget for the year 2022.
Nuri said in an interview with “Mawazine News” that “the current government was supposed to send the budget law since the ninth month of last year, according to the constitutional timing for sending the law.”

————————–

Economic: Al Furat News} The Prime Minister’s financial advisor, Mazhar Muhammad Salih, suggested the issuance of decisions supporting the poor classes during the next two weeks.

Raghad Daham

LINK

————————-

It includes financial support.. Finance announces the submission of a draft law to support the poorest groups

The Ministry of Finance announced, on Saturday, the submission of a draft law to support the poorest groups.

Finance Minister Ali Allawi confirmed, according to the statement, that “the draft law will be presented through the official contexts of the Council of Ministers in the coming days.”

LINK

——————————–

He revealed the reasons for adjourning the parliament session half an hour after it was held

Shafaq News / The Representative of the New Generation Bloc, Omid Muhammad, revealed on Saturday the reasons for adjourning the parliament session, after it was held in less than half an hour.
The parliament session, which was held earlier today, headed by Muhammad al-Halbousi, and attended by 265 deputies, witnessed a vote by a majority of attendees to reopen the nomination for the position of President of the Republic.

Muhammad told Shafaq News Agency, “Some political blocs did not present their candidates for membership in the parliamentary committees.”

He added that “the first deputy speaker of Parliament, Hakim al-Zamili, had asked the political blocs to submit the names of their candidates within 48 hours, to take over the 25 permanent committees in the House of Representatives.”
And Muhammad indicated, “After reopening the nomination for the post of President of the Republic, the matter will be resolved, within a period of 3 days.” LINK

———————————

The Iraqi Parliament Publishes the conditions for candidacy for the post of President of the Republic

The statement called on, “Those who wish to run for candidacy who meet the conditions stipulated in Article 1 of the aforementioned law and referred to below, submit their written applications accompanied by official documents proving that they meet the conditions, along with their CVs, to the Presidency of the House of Representatives and deliver them during official working hours to ( The Legal Department of the House of Representatives) located at the Conference Palace headquarters, starting from Sunday, March 6, 2022 and for a period of three days.

MilitiaMan "CBI Has the Exchange Rate in Thier Court" Friday 3-4-2022

KTFA:

MilitiaMan:  We need to try and decipher the wheat from the Chaff. Not an easy task be sure. But, if we look closely we can see that they purposefully muddy waters and have done so, as long as I have studied this. 

This professional expert (see below link)  if you will , describes it as confusion, nothing more. Done imo on purpose, sadly. A confusion that does creates a similar environment like the short and distort we see here today. It creates doubt and that doubt lacks hope and sets those that are in need and hurting up for failure. 

As for the CBI, they have the exchange rate in their court. Not the GOI / Finance Minister, his tasks are important, just different from the CBI. The expert explains it very well. They are independent from each other. 

As for the political side of things, they will eventually come around. They may even come around at the same time. I know there is a view that they need to be first, but, the way I read it and from the expert on the CBI has it that the exchange rate is in their court…They devalued before and they can revalue in the future.

So, we shall see if this Saturday and subsequent sessions the same day on the political side of things, do in fact set the stage for a synchronization of the two independent bodies to coincide with one another. 

Note we have the automation of the Borders for Customs that will create wealth equal to or similar to that of their oil output revenues. Which by the way they have told us they want to cease the currency auctions.

Well, Sunday’s auction was a mere $960,000.00. That is a very telling sign in and of itself. I believe our dear Samson, is like me in that we haven’t seen that specific number before.. So, by that we can garner there is hope that behind the scenes there is much progress is getting done and that brings me hope in what I see to be a fairly accurate view on things.

The goal is to help the citizens. Purchase power brings hope and healing to the citizens, and that requires an exchange rate change.

The support for that rate change which is expected to be explained in the short term to the Parliament will be derived from the increase in oil pricing to the tune of $120+- a barrel and including the revenues from the automation of the borders equaling a similar amount to oil. 

Let us see what happens next, my feeling is it is all good!! ~ MM

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

The exchange rate of the dollar and political rivalries

“For those who do not know what is the difference between the powers and actions of the Ministry of Finance and the Central Bank of Iraq, the Ministry of Finance is the one who sets the financial policies of the state as a whole, including taxes, customs, spending, budget and studies on spending and public consumption.

 As for the central bank, it sets monetary policy from interest rates, bond interest and the currency exchange rate, and it is one of the most dangerous policies in the country because it determines price and inflation rates and controls imports and exports.

 According to the Central Bank of Iraq Law No. 56 of 2004, which was issued by the Coalition Authority, where the law stipulated in Article (16-b) as follows:

 (Formulating policies that would achieve the main objectives of monetary policy, including the exchange rate policy, the restrictions imposed on the operations carried out by the Central Bank of Iraq in the open market, the interest rate policies that are imposed on the procurement of funds for the banking sector, and all forms and levels of reserves that are required of banks to maintain However, the board does not have the authority to join a fixed exchange rate regime such as a monetary union or a currency board).

Where it expressly stated that the one responsible for the exchange rate is the Central Bank, not the Ministry of Finance, and that any talk about the Minister of Finance and the Ministry of Finance is nothing more than confusion and confusion of papers. It is supposed to host the Governor of the Central Bank of Iraq to clarify the exchange rate of the dollar against the dinar, not the Minister of Finance.  LINK

———————————–

The date of passing the presidents of the republic and the ministers

Today, Friday, Kurdistan Democratic Party deputy, Mahdi Abdul Karim, revealed new
details about the date of passing the posts of the presidents of the republic and the
ministers.

And Abdul Karim said in a statement to (Baghdad Today) that “the session that will
follow the opening session of the nomination for the presidency, scheduled for next
Saturday, will witness the continuation of voting on the presidents and ministers in one
basket.”

And he indicated that “another session will be held 3 days after the opening of the
nomination session to pass the candidates for these two positions (the president and
ministers).”

He explained that “the Tripartite Alliance (the Kurdistan Democratic Party, the Alliance of
Sovereignty and the Sadrist Movement) will be present during the parliament session
tomorrow, Saturday, and the majority will be clearly visible and the ability of the Triple
Alliance to hold the session.”   LINK

Frank26 and KTFA Members Friday 3-4-2022

KTFA:

Frank26:  “ALL THEY TALK ABOUT IS THE NEW EXCHANGE RATE!!!”…….F26

A new parliamentary statement regarding the dollar exchange rate

2nd March, 2022

Representative of the State of Law coalition, Muhammad Al-Sihoud, said on Wednesday that his coalition is “one of the most demanding” of restoring the dollar exchange rate to its previous era.

In an interview with Mawazine News, Chihoud said, “Our efforts are continuing on the necessity of returning the dollar to its normal price, due to the great harm it caused to citizens.”

He added, “The increase in the exchange rate of the dollar did not achieve the desired goal, especially since oil prices rose and the financial crisis in the country ended.”    LINK

Frank26:  “ALL THEY TALK ABOUT IS THE NEW EXCHANGE RATE!!!”…….F26

Al-Maslmawi: The Minister Of Finance Is Obligated To Address The Negative Effects Of The High Dollar Exchange Rate

3rd March, 2022

Representative of the State of Law coalition, Firas Al-Maslmawi, confirmed that the Minister of Finance is obligated to take urgent measures to address the damage caused by the rise in the exchange rate of the dollar.

Al-Maslamawi told “Al-Maalouma”, “The State of Law coalition has shown more than once the damages of the high exchange rate of the dollar to the citizen, and also refused to vote on raising the exchange rate because of its remnants on the living reality.”

He added that “the dollar’s exchange rate, and after a year of its rise, some political blocs found out the great damage it left to the citizen,” noting that “the Minister of Finance, after giving an explanation of the country’s financial situation, the political blocs demanded that he address the negative effects of this rise.” 

And he indicated that “parliament members obliged the Minister of Finance to submit a study within two weeks that includes solutions to the negative damages inflicted on the citizen and the poor, provided that he supports the ration card and a social protection network, increases its salaries, grants loans for youth employment without any benefits, and addresses other negative effects.”  LINK

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

Samson:  An Iraqi Official: Rising Oil Prices Will Not Do Anything… This Is The Reason!

3rd March, 2022

An Iraqi official in the Cabinet confirmed today, Thursday, that the rise in oil prices will not benefit anything, among the reasons for this.

The official, who asked not to be named, told “Earth News”, “The rise in oil prices will not benefit anything, even if the price of a barrel of oil reaches 300 dollars, Iraq will not benefit from this increase as long as there is no budget.”

And he indicated that “spending in 2022 is subject to the Financial Management Law, which stipulates that in the event the budget is not approved, the disbursement will be similar to the previous year with the principle of 1/1, but this matter increases the reserves, but no additional amount will be spent above what was spent in 2021 until the budget is approved.”  LINK

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

Samson:  Clarification From The Central Bank Regarding The Exchange Of The Dollar And Money Laundering

3rd March, 2022

The Central Bank of Iraq issued a clarification on the dollar exchange rate and money laundering.

And the bank confirmed, in response to a previous parliamentary question, seen by “Earth News”, that “the Iraqi judiciary has taken the necessary measures regarding some forged invoices, which date back to previous dates.”

He added, “The exchange rate change came to remedy the gap between the real value of the national currency and its nominal value.”

Translation ….

The Iraqi Parliament / Office of Representative Soran Omar Saeed M / Question about the dollar exchange rate and money laundering  –  We show that the information contained in your above letter regarding the (forged) invoices of some banks dates back to earlier dates. The Iraqi judiciary took its measures in a timely manner towards those banks, and the court’s decision was to complain against the banks and close the case for the absence of a crime because the permits submitted by the banks are correct and supported by the outlets.  related border.

On the other hand, the instructions of the window for buying and selling foreign currency issued in 2021 obligated all banks participating in the window, to finance foreign trade through documentary credits and foreign transfers, 10 files for each company  (Customer) includes, among other things, an endorsement of purchasing the goods or obtaining the service that has been communicated to the final beneficiary, an endorsement that the bank conducts searches, investigations and verification of all parties of remittances. 

In addition, the border outlets have to do their duty and endorse the correct invoices.  Banks that are proven to have submitted incorrect invoices are formally referred to the judiciary to take legal action against them. 

Regarding your inquiry about the possibility of changing the current exchange rate, we would like to clarify that the current exchange rate has many positive results, including reducing the budget deficit, which achieved a surplus in 2021 compared to 2020, and that the fiscal space that was achieved for the Iraqi government as a result of the current exchange rate will help it to its obligations include part of the internal and external debts, which contributes to enhancing financial sustainability, to the fragile classes, and to financing stalled investment projects.

With regard to changing the exchange rate, we would like to point out the following: 10 The exchange rate over a short period of time confuses local markets, threatens investment, creates a strong stagnation and weakens confidence in monetary policy and the value of the local currency, also contributing to the increase in speculation. 

The exchange rate change came to remedy the gap between the real value of the national currency (the dinar) and its nominal value, as the dollar was calculated at a low exchange rate, which gives  A high competitive advantage for imported goods and services, which prevents the rise of the national product, while raising the exchange rate constituted a barrier to the competitive importer of the national product equivalent to the rate of change in the exchange rate (about 23%).   

It is worth noting that the decision to change the exchange rate is a national strategic decision that is not linked to interim conditions, and that the negative results that may have resulted from it, can be avoided by financial and governmental action to support vulnerable groups and improve the ration card and not retract this important decision.  With respect.   LINK

Samson:  The Asian Infrastructure Investment Bank Suspends Its Activities In Russia And Belarus

4th March, 2022

The China-backed Asian Infrastructure Investment Bank has suspended business related to Russia and Belarus

The bank said in a statement issued yesterday, Thursday, that “in the interest of the bank, the management decided to suspend all activities related to Russia and Belarus and are under review,” noting that it “actively monitors the situation in Ukraine,” and that the administration will do “all efforts to protect the financial integrity” of the group

China, whose bilateral relations with Russia have strengthened in recent years, has so far avoided criticizing Moscow over Russia’s military operation in Ukraine

Beijing is the largest stakeholder in the multilateral institution, the brainchild of Chinese President Xi Jinping, with nearly 27 percent of the voting power

The bank was launched in 2016 to counter Western domination of the World Bank and International Monetary Fund

Russia is also among the founding members of the Asian Bank, holds about 6 percent of the votes in its operations, and is the third largest after China and India. She also holds a seat on the bank’s board of directors

The Shanghai-based New Development Bank, which was founded around the same time and has similar goals to the Asian Infrastructure Investment Bank, said it had “suspended new transactions in Russia

LINK

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

Samson:  After The Decision Of The Russian Central Bank .. Sberbank: Deposits Of The Population Amounted To A Trillion Rubles In Two Days

3rd March, 2022

Sberbank, the largest Russian bank, confirmed that it witnessed a demand from citizens to deposit money in Russian rubles, after the historic decision of the Russian Central Bank.

The press service of Sberbank said that the bank has received deposits in Russian rubles and foreign currencies in the amount of more than one trillion rubles over the past two days.

The press service of Sberbank attributed the demand for deposits to the rise in interest rates after the decision of the Central Bank of Russia to increase the main interest rate.

At the beginning of this week, the Russian Central Bank took a set of decisions to achieve financial stability in the country, the most important of which was raising the main interest rate to 20% annually.

In light of this, Russian banks raised interest rates on deposits, including Sberbank, which raised the interest on ruble deposits (from one month to 3 months) to 21%, and on foreign currency deposits to 6%, to the amount of $1,000 and more.  LINK

KTFA Members "News and Views" Thursday 3--3-2022

KTFA:

Samson:  Brent crude price exceeds $119 per barrel

3rd March, 2022

Oil prices continue to rise since Russia invaded Ukraine, amid expectations that the market will remain in short supply for several months following the imposition of harsh sanctions on Moscow and the mass exit of investments by major companies from Russian oil assets.

Brent crude futures reached their peak near a 10-year high, at $119.3 a barrel in trading on Thursday, up $6.3, or 5.6%.

US West Texas Intermediate crude futures also achieved their highest level at $116.02 a barrel, up by $5.4, or 4.9%.   LINK

Samson:  Warnings Of The Collapse Of The Foreign Currency Market After The Price Of Oil Exceeded 120 Dollars

3rd March, 2022

An expert warned of the repercussions of high oil prices on the markets, indicating that the rise of a barrel of oil to the level of $120 a barrel and its stay at this level for a long time will lead to a collapse in the markets.

The expert, Alexander Timofeev, assistant professor of economics at the Russian Plekhanov University of Economics (Moscow), said that keeping oil prices at the level of 120 dollars per barrel for a long period of time will lead to further development of oil fields, which will contribute to the formation of a surplus in the oil market and over time the collapse of this market.

The expert suggested a rise in oil prices in the short term to the level of 150 dollars or even to 200 dollars a barrel, noting that the participants in the oil market will create conditions for the balance of supply and demand in order to return the market to 95-100 dollars.

Oil prices are rising in light of the conditions related to Ukraine, and Brent crude futures rose today above the level of $ 118 a barrel, which is the highest level since February 2013.  LINK

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Samson: The rise in oil prices turns the budget of some countries into a “surplus”

3rd March, 2022

A recent report revealed that the rise in the price of a barrel of oil to exceed levels of $100 contributes to shifting the budget of some countries by the end of the current year 2022, and according to the current prices that touched levels of $113 a barrel, Bahrain’s budget will record a surplus if the current prices continue, as Bahrain needs to sell a barrel of oil at a price $106.62 for surplus.

While Algeria needs to sell the barrel at a price of 116.65 dollars to record a surplus in its budget for the current year 2022.

Saudi Arabia had announced that it recorded a surplus during the 2022 budget, equivalent to 90 billion riyals for the current year, and Saudi Arabia needs to sell oil prices at a value of $ 72.42 to achieve the surplus in its budget, while the UAE needs to sell a barrel at $ 66.81 to achieve the surplus, and Kuwait needs to sell it at $ 65.36 To record the surplus in its budget, according to “Emirates Today”.

The report showed that Iraq needs to sell a barrel at a price of 64.25 dollars to turn its budget into a surplus, and Oman needs to sell a barrel at 60.54 dollars, while Qatar is sufficient to sell a barrel at 44.09 dollars to achieve the surplus.   LINK

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Samson:  What does Eid al-Fitr have to do with the formation of the Iraqi government?

2nd March, 2022

Wednesday, Representative Yasser Iskandar Watut expected that parliament will open the door for nomination for the position of President of the Republic next Saturday, hinting at the formation of the government after Eid al-Fitr.

Watout said in an interview with (Baghdad Today), “The coming period will be the trend to resolve the position of the president, open the door for nomination next Saturday, and resolve the parliament’s committees for their oversight importance.”

He added that “the matter will be limited to the nomination for the presidency of the republic only, and the formation of the government will take place after Eid al-Fitr, while the procedures for forming parliamentary committees will continue in these days.”  LINK

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Billuke:  I believe Eid al-Fitr is the holiday after Ramadan.  May 2 or 3 this year…we’ll see.  imo  

GodLover:  Yep, Ramadan April 1st to April 30th imo. Then Eid imo. 

It’s beginning to be crunch time for government formation, budget approval ect. Here are my thoughts of late.

The candidacy for presidency drama continues. Per other articles, if nothing is resolved, the current president stays in office for the next term. I am not certain when that scenario could take place though.

Once a new or the current POR is seated, maybe then he will have the authority to send the budget to parliament. Even with that said, I don’t expect the budget to open until the new government is formed & seated.

How long of a process for parliament to read & vote on the budget, is still unknown of course. As well, I don’t expect government formation completed until after Ramadan. 

As a general rule, Iraq does little to nothing during Ramadan, I suspect nothing less this year as well. But if they could seat a new POR or the current stays & had the authority to send the budget to parliament, in theory they could work on the budget during Ramadan.

The absolute soonest I can see the budget opening is early May…..that’s if everything I said above falls into place. WS had stated imo the best times for the MR reforms are end/beginning, mid year, because of accounting purposes imo.

With that theory, which I agree with, June could be in play. Certainly, if the budget were not to open by July, I would suspect that the budget will not open this year at all.   

Samson: Fitch downgrades Russia’s sovereign rating to junk

3rd March, 2022

On Wednesday, Fitch Ratings cut Russia’s sovereign rating by six notches to junk, saying Western sanctions over the war on Ukraine had made Russia’s ability to service its debt uncertain and would .weaken its economy, in a “huge shock” to its creditworthiness.

Russia’s financial markets were plunged into turmoil over its attack on Ukraine, the largest military offensive in Europe since World War II, and the imposition of strict Western sanctions.

The war raised warnings of the impact on the Russian economy. Standard & Poor’s last week also cut Russia’s rating to junk, and Moody’s put the country under review for a downgrade. The Institute of International Finance expects a double-digit contraction in its economic growth this year.”  Fitch lowered Russia’s rating to B from BBB, and placed it under “Negative Rating Watch.

The severity of international sanctions in response to Russia’s military invasion of Ukraine has” increased risks to macro-financial stability, represents a massive shock to Russia’s credit fundamentals and could undermine its willingness to service government debt,” it said in a report.

Fitch added that US and EU sanctions banning any transactions with the Russian Central Bank would have “a much greater impact on Russia’s credit fundamentals than any previous sanctions,” rendering much of Moscow’s international reserves unusable for currency-trading interventions.“

And Fitch warned that “the sanctions could put pressure on Russia’s willingness to repay the debt President Putin’s response to putting nuclear forces on high alert appears to reduce the likelihood of him changing course on Ukraine to the degree required to reverse the impact of the rapid tightening of sanctions,” she added.

Fitch said it expected further escalation of sanctions against Russian banks. The agency warned that the sanctions imposed by Western countries will significantly weaken the growth potential of Russia’s gross domestic product compared to the agency’s previous assessment of 1.6 percent growth. 

Analysts at JP Morgan and others have warned that sanctions against Russia have significantly increased the chance of it defaulting on its dollar and other government debt in the international market.  LINK

KTFA Members "News and Views" Wednesday Afternoon 3-2-2022

KTFA:

Samson: Successive jumps .. Oil rises to 113 dollars a barrel

02/03/2022 12:13:50

 Oil prices continue to rise today, Wednesday, as the barrel of “Brent” rose above the level of $113 for the first time since July 2014.

By 11:05 Moscow time, US West Texas Intermediate crude futures rose 6.87% to $110.42 a barrel, while Brent crude futures rose 6.54% to $111.84 a barrel.

Prior to that, Brent contracts were traded above $113 a barrel for the first time since July 2014.  LINK

Al-Kazemi’s advisor: The state’s loss will be great by adjusting the exchange rate

1st March, 2022

Tuesday, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, identified two directions for resolving the exchange rate crisis, while explaining the extent to which the currency market was affected by conflicting statements.

Saleh said, “The currency market is inevitably affected by information, and the bond sale market is also affected, which is a free market with duelists and an information market,” pointing out that “sometimes there is false information that disturbs the market or may be truthful that leads to the exchange of buying and selling very quickly.”

He added, “It is not possible to deviate from the contexts of the Ministry of Finance, but if the exchange rate is modified, it will have a benefit and a loss, and the state’s loss will be greater because it has achieved revenues in the form of an inflation tax at a rate of 20%, and if the value of the dinar is raised, the value of the increase will be lost by public finance, especially and that it depends on 93% of the value of its revenues that depend on oil, as it is a key player in managing the budget.”

He pointed out that “there must be two directions to solve the crisis, the first is to re-evaluate the dinar and raise it alone, and it seems that there is no tendency on the part of the Ministry of Finance, but it must use the compensatory tendency such as taxes and customs duties, expand the base of social assistance and improve the food ration of the poor,” referring to that “the budget compensates for the difference between the exchange rate difference by supporting the poor in the budget and expanding the base of support, and this is what the Ministry of Finance tends to do now.”

He continued, “Among the solutions is also maintaining the prices of fuel and food and consumer goods in the markets to compensate for the income,” stressing that “the market is stable at a low exchange rate and there is a high price difference, but inflation is still within the single decimal place, according to a statement by the Ministry of Planning.”

And he warned, that “if inflation exceeds two ranks, it will become a danger,” noting that “the biggest solution to treating inflation is interfering with the exchange rate.”  LINK

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Samson: International Monetary warns Iraq and announces its position on the dollar exchange rate

02/03/2022 10:42:02

The International Monetary Fund warned Iraq of the “fragility” of its economic recovery.

The head of the IMF mission in Iraq, Tohir Mizorov, said in a press statement: “Policies aimed at containing inflation and its impact should take into account the fragility of recovery in Iraq and the long-term goals of diversifying the economy and strengthening the private sector. It is to avoid making the problem worse by adopting domestic policies that would increase inflation, for example through expansionary policies.”

He added, “The second priority is to implement policies that are carefully targeted to protect the most vulnerable groups. At the same time, it will be important to avoid any measures that could weaken Iraq’s economic capabilities without addressing the problem. 

For example, measures that undermine the competitiveness of local producers and encourage imports will not contribute to realizing the benefits of remembering the weak groups, if they exist at all, and this explains the scarcity of countries with a fixed exchange rate to raise the value of their currency in economic history, and for the same reasons, it would not be advisable for Iraq to do so.

Mezroev pointed out that “the rise in prices leads to an erosion of the purchasing power of families’ income and savings, and since more than one-fifth of the Iraqi population lives in poverty, protecting vulnerable groups from the effects of inflation is of paramount importance.

 To achieve this, the 2022 budget should give priority to strengthening cash transfers directed to helping families.” the poorest during these difficult times.” “Also, continuing to work on improving the coverage of the social protection network will contribute to ensuring assistance to those who are really in dire need of assistance,” he added.

Moreover, linking the increase in pensions, salaries of civil servants and low wages to inflation will contribute to protecting the purchasing power of their incomes and prevent them from falling into poverty. International experience has shown that such measures are the most effective in protecting the livelihoods of vulnerable groups.” And the House of Representatives discussed in its session last Monday, in the presence of Finance Minister Ali Allawi 

The Council discussed, during its hosting by the Minister of Finance, the rise in the exchange rate of the dollar and its repercussions on the market through the rise in prices and the damage to the poor segment, and the discussion of public debt and the financial policy of the Ministry of Finance and the proposed treatments.

Allawi warned during the session that reconsidering the exchange rate of the currency “in an ill-considered manner would lead to financial chaos similar to some countries, so the trend was to set the exchange rate of the Iraqi dinar comfortably to protect it from any external changes with a proactive and correct step in coordination with the Central Bank and study it with the President The government, heads of political blocs and other parties, in addition to the support of the International Monetary Fund, to change the price at a reasonable rate.

Allawi indicated that the benefits of devaluing the Iraqi dinar increased government revenues by 23 percent, pointing out that “the rise in prices in the Iraqi markets was not due to the decrease in the exchange rate of the dollar only, but rather as a result of the increase in global food prices since 2020.”

The Minister of Finance explained that “the rise in global oil prices is beneficial to Iraq and at the same time affects its needs of foodstuffs and oil derivatives, and the import of gas that is used to generate electricity by 30 percent, noting that the Iraqi external debt will be reduced by 4 billion dollars in 2021.” Allawi suggested “supporting vulnerable segments of society by allocating a direct grant to be distributed through the ration card or social welfare and supporting small and medium-sized enterprises, especially in rural areas, as a result of the financial abundance resulting from the increase in oil prices.”  LINK

Clare:  DON’T WALK PAST THIS ARTICLE! IMO… WHY IS THE IMF TALKING TO THEM ABOUT THE EXCHANGE RATE???? WHY NOW???? THINK!   IMO

“in addition to the support of the International Monetary Fund, to change the price at a reasonable rate.”

WHY DISCUSS THE EXCHANGE RATE IF NO NEW RATE IS FORTHCOMING?  MONDAY NIGHT FRANK TOLD US “ALL THEY TALK ABOUT IS THE NEW EXCHANGE RATE!”- F26 

Sir:  IMO- IMF is telling them stop it now!
Drop the 3 zeros and float your dinar, fixed rate will not work, get it done now!

Solorat:  This article is perfect, IMO there telling these people to get this finished with the 3 zeros and exchange rate. Get this done, finished, completed NOW!!!

Samson:  The European Union separates 7 Russian banks from the SWIFT system

2nd March, 2022

Today, Wednesday, the European Union announced the separation of seven Russian banks from the “Swift” banking system.

The union said, according to a document published in its official gazette, that “the procedure affected the following Russian banks: VTB, Rossiya, Turkey, Novikombank and Prom Sviasbank.”

The decision to separate these Russian banks from the “Swift” system is scheduled to be implemented starting March 12, 2022.

He added that “it is prohibited” to “deliver, transfer or export” euro banknotes. To Russia, but with a number of exceptions,” noting that “the tightening of sanctions is linked to the aggravation of the situation in Ukraine.”  LINK

Sir:  Behold’   IMO – WW we will see country after country going to gold backed currency do to what you read in this article. Game over for a system that was designed to keep us all in debt. MLK said it best in his statement… Free at last-thank GOD Almighty FREE at  last…

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Samson: A major Russian bank announces its withdrawal from European markets

2nd March, 2022

The main Russian bank, Sberbank, announced on Wednesday that it was withdrawing from European markets, after it was subjected to extensive financial sanctions in response to the Russian invasion of Ukraine.

“In the current situation, Sberbank has decided to withdraw from the European market. Group banks are facing abnormal withdrawals and threats to the safety of their employees and offices,” the bank said in a statement reported by Russian news agencies. 

The statement added that the bank is no longer able to provide liquidity to its European branches due to a memorandum issued by the Russian Central Bank.

Sberbank had branches in 8 European countries: Germany, Austria, Croatia, the Czech Republic, Hungary, Slovenia, Serbia and Bosnia and Herzegovina. The bank emphasized that “the European branches of Sberbank enjoy a high level of capital, assets and customer deposits that are guaranteed by local legislation.”

The European Union’s banking regulator had announced that a bankruptcy proceeding would be initiated on the main European branch of Sberbank, which has been weakened by financial sanctions. 

This branch, “Sberbank Europe AG”, headquartered in Austria, employs about four thousand people and will be the subject of a “insolvency procedure” in this country, according to the authority.  LINK