KTFA Members "Iraq and Vietnam News" Friday 12-30-2022

KTFA:

Clare:  Finance: The resumption of working hours for the staff of the budget and accounting departments during official holidays

12/30/2022

The Ministry of Finance announced the resumption of working hours for the staff of the Budget and Accounting Departments during official holidays.

A statement by the ministry stated: “The cadres of the budget and accounting departments in the Ministry of Finance continue to work on official days (Fridays, Saturdays and Sundays), in order to complete the audit procedures related to fixing the contracts segment in state departments and political dismissals and completing compensation for victims of terrorism and war operations, in addition to the continuation of the accounting department with financing procedures.

” For the current month of December, and financing the completed work items for investment projects, according to what is stated in Food Security Law No. (2) for the year 2022.

He added, "With exceptional efforts, these measures come in implementation of the ministerial program, in light of upgrading the mechanisms of managing public funds and guaranteeing the rights of all segments and groups of society in accordance with the instructions stipulated, in addition to improving the level of services provided, and the optimal application of the government program in the field of financial management and control of public expenditures." .  LINK

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Henig:  Minister of Finance: The budget was not sent to the Council of Ministers.. and these are its most important priorities

Baghdad / NINA /- The Minister of Finance, Taif Sami, revealed today, Friday, the fate of the draft general budget law for the year 2023, and the most important paragraphs that it will focus on.

Sami said, in a statement to the official News Agency, that "the ministerial program approved by the Council of Ministers includes current expenditures for some Ministries, and other investment projects that the Ministry of Planning worked on and were included in the 2023 budget."

She added, "The general budget will focus primarily on the health sector, supporting hospitals, reducing surgical procedures abroad, supporting vulnerable classes, social care, and people with disabilities, and raising the loan capital ceiling for small projects in the Ministry of Labor."

She explained, "The Ministry of Finance is still working on completing the general budget law for the year 2023, and there are meetings held with the Prime Minister to include the directives, and they have not yet been sent to the Council of Ministers," stressing that "the budget will include the establishment of a development fund, and we set its allocations for the investment platform with a text in the law on how to support it and prepare its internal system and draft within a year.

The Minister of Finance continued, "The price of a barrel of oil, which has been placed so far in the general budget, amounted to 65 dollars, and it may reach 70 dollars, and the total amount of the budget has not yet been set, while the exchange rate has been fixed at 1450."

She stressed that "the draft general budget law may include a study to impose some taxes on the oil derivatives sector, if approved by the House of Representatives, which would enhance revenues." LINK

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Vietnam

Henig:  China reopening will give Việt Nam GDP 2%pts boost in 2023: Vinacapital economist

December, 30/2022 - 08:22

China’s reopening is expected to boost Việt Nam’s GDP growth by over 2 percentage points next year, driven by the full resumption of Chinese tourist arrivals in the second half of 2023, Michael Kokalari, chief economist at investment fund VinaCapital, has said.

HCM CITY — China’s reopening is expected to boost Việt Nam’s GDP growth by over 2 percentage points next year, driven by the full resumption of Chinese tourist arrivals in the second half of 2023, Michael Kokalari, chief economist at investment fund VinaCapital, said in a recent report.

“We expect China's reopening will have a bigger impact on the economies of other ASEAN countries than it will for Việt Nam due to those countries’ greater exposure to China’s domestic economy," the report said.

“The most immediate impact of China’s scrapping of its COVID restrictions has been a circa 5 per cent appreciation in the value of the đồng, driven by a 5 per cent appreciation in the value of China’s currency. 

“That said, the major benefit that Việt Nam will accrue from China’s re-opening is likely to be a circa 2 percentage point boost to GDP growth next year driven by a resumption of Chinese tourist arrivals.” 

But China’s reopening is also likely to cause some inflationary pressure in Việt Nam though the impact could be mitigated by several factors, including a more prolonged reopening compared to the US and Europe as well as less pent-up savings and demand in China compared to the US and EU.

Though China is Việt Nam's largest trading partner, Việt Nam’s exposure to China’s domestic economy was quite modest, resulting in Việt Nam’s GDP growth not being significantly hindered by COVID restrictions and resultant economic problems in that country.

Việt Nam’s export growth to China was nearly flat in the first nine months, but since only 14 per cent of its exports went to China its GDP had soared 8.8 per cent year-on-year despite China’s lockdowns in part because exports to the US and the EU, which accounted for nearly half of all exports, grew by 25 per cent in the first nine months of the year.

Furthermore, most of Việt Nam’s exports to (and imports from) China were of production inputs and/or other intermediate goods used in the manufacture of electronics and garments. 

Some Vietnamese companies would benefit from China’s reopening, such as those that sell seafood and farm produce, but exports of products consumed by Chinese customers only accounted for around 5 per cent of Việt Nam’s total exports.

Foreign tourism had contributed about 10 per cent of Việt Nam’s GDP pre-COVID, and tourist arrivals were on track to reach 25 per cent of pre-pandemic levels this year.

“We expect the number of foreign tourists will climb above 50 per cent of pre-COVID levels in 2023 based on the assumption that Chinese tourist arrivals fully recover in the second half of next year," the report added.

“However, the pace of recent developments in China point to a possible faster full resumption of Chinese tourist arrivals, which could lead to an even larger contribution to Việt Nam’s GDP growth next year than we currently expect.

“We are aware of concerns some investors have that the reopening of China’s economy could detract from Việt Nam’s appeal as a destination for FDI investment. We see no possibility of this happening given that China has irrevocably damaged its appeal as an investment destination for multinational firms, and US-China trade tensions have dramatically escalated this year.”

Besides, there had been strong structural factors prompting FDI inflows to Việt Nam even before US-China trade tensions had emerged. 

Factory wages in Việt Nam were around two-thirds less than in China, but the quality of Việt Nam’s workforce was comparable to that of China according to surveys by JETRO and others.

Also, Japan and South Korea, which accounted for over half of Việt Nam’s FDI inflows, both faced serious demographic and intractable economic issues that compelled companies in both countries to invest abroad. — VNS   LINK

Henig:  The path to fostering green exports

06:00 | 30/12/2022

(VEN) - Data from the recent Vietnam Export Promotion Forum 2022 organized by the Ministry of Industry and Trade and the European Chamber of Commerce (EuroCham) in Vietnam show that businesses in various sectors have renewed production to meet green manufacturing standards for exports, enhancing the competitiveness of Vietnamese goods in the international market. 

Competitive advantages

Minister of Industry and Trade Nguyen Hong Dien told forum participants that in the first 10 months of 2022, total import-export value reached nearly US$620 billion, up 14 percent year-on-year, with a trade surplus of US$9.4 billion. The foreign trade value is expected to reach US$750 billion by year’s end, up 16 percent compared with 2021, and trade surplus to be maintained, contributing significantly to Vietnam’s economic growth.

Despite favorable export results, Minister Dien warned Vietnamese exporters of numerous difficulties. Specifically, global trade is being affected by growing geopolitical tensions and fierce strategic competition between major countries. Meanwhile, rising inflation has forced many governments to tighten their fiscal and monetary policies. Notably, global supply chains continue to risk disruptions that will affect import-export activities and the growth of the Vietnamese economy due to its high degree of openness (more than 200 percent). Moreover, many importing countries apply strict regulations in terms of environment and social responsibility on imports from Vietnam.

“To achieve sustainable export growth, Vietnamese businesses should promote green manufacturing and join global supply chains to meet strict technical requirements of importing markets. Further, businesses should improve product quality and packaging to enhance their competitiveness,” Minister Dien emphasized.

EuroCham Vietnam Vice Chair Jean-Jacques Bouflet said Vietnam has taken advantage of free trade agreements (FTAs) to diversify and increase exports. However, he added, Vietnam is one of the world’s most vulnerable countries to climate change, and therefore it should focus on ping a green, sustainable economy.

“FTAs involving Vietnam, especially the EU-Vietnam Free Trade Agreement (EVFTA), have commitments to green, sustainable development. EU consumers prefer to buy products made according to green, sustainable production processes. The EU also has very high technical standards for production. Therefore, Vietnamese businesses have to restructure production in this direction. EuroCham pledges to support and cooperate with Vietnam in this field,” Bouflet said, adding that European companies wish to take advantage of the EVFTA to increase investment in Vietnam.

Green growth strategy

The Communist Party and the State of Vietnam have put in place policies and mechanisms creating conditions to develop a green, circular and environmentally friendly economy. The latest one among those is Prime Ministerial Decision 493/QD-TTg approving Vietnam’s goods import-export strategy to 2030.

Businesses in many sectors have increased investment in production equipment and human resource training, while at the same time promoting digital and green transformation to meet the growing customer demand for environmentally friendly products and services.

Bartosz Cieleszynski, Deputy Head of the Trade Section of the EU Delegation to Vietnam:

Creating green product flows

The EU-Vietnam Free Trade Agreement (EVFTA) has a chapter on green growth, helping create “flows” for green products and sustainable development. Vietnam will benefit from green technology application and development. Exporting green products is a promising way, and green technology is not beyond the reach of Vietnamese businesses. To produce green, sustainable products, Vietnamese businesses should apply green technology, starting from key export sectors such as agriculture, forestry and fishery.

Materials used to make products for export to Europe should also abide by sustainability principles and food safety regulations. Vietnamese authorities should help farmers and producers improve product quality to meet sustainable development criteria, including good agricultural practices and organic farming.

Other products such as footwear, textiles and garments can also participate in voluntary certification programs such as the Better Cotton Initiative (BCI), Global Organic Textile Standard (GOTS), and People for the Ethical Treatment of Animals (PETA). EU consumers and importers are very interested in these certification programs, which require biodiversity and soil conservation, sustainable water management, reduced use of pesticide, ensuring minimum and fair wages, elimination of child labor and animal maltreatment. Therefore, Vietnamese manufacturers and trade managers should pay attention to the shopping orientations of EU consumers.

Assoc. Prof. Dr. Nguyen Hong Quan, Director of the Institute for Circular Economy Development under the Vietnam National University, Ho Chi Minh City:

Opening new doors for exports

According to an International Labor Organization (ILO) 2022 report, a shift to green economy models can generate 24 million new jobs by 2030, and 63 percent of consumers consider sustainable development factors of brands when making purchasing decisions, according to a 2022 McKinsey survey. Nielsen’s 2022 Global Annual Marketing Report shows that the global market of green products is growing faster and bringing higher benefits compared with “brown” products of the same categories.

The green economy opens new doors for increased exports through green technology development, enhancing productivity and efficiency, strengthening investor trust, opening new markets, increasing budget revenues through green taxes, and reducing risks in the business environment.

To shift to a green economy, we have to attract investment in eco-industrial parks and build agro-industrial parks to prevent pollution, share energy resources, and develop transport, logistics, human resources and finance. Coordination is required between sectors such as agriculture, industry and trade, natural resources and environment, science and technology, planning and investment, finance, education, transport, and tourism. Breakthrough policies and mechanisms are needed in planning, project preparation, and investment attraction.

Truong Dinh Hoe, Secretary-General of the Vietnam Association of Seafood Exporters and Producers (VASEP):

Positive changes in the seafood sector

Green export strategies have strong impacts on the competitive advantages of seafood processing companies, making their products more attractive to foreign customers, helping build their green business image in the market.

This competitive advantage helps seafood companies achieve high financial efficiency. However, it will take time for seafood companies to implement green export strategies to build this competitive advantage. Therefore, businesses should be encouraged to take the initiative in promoting green production.

Nguyen Thi Lien, Deputy Director of the Phong Phu International Joint Stock Company:

Prioritizing environmentally friendly materials

In the past, the company had to use 40 liters of water to produce a pair of jeans. Today, with support of modern machinery and technology using ozone and laser, we need only four liters of water to make a similar product. Modern technology has also enabled the company to avoid using harmful chemicals, reduce power consumption and minimize industrial exhaust fumes, helping us create sustainable, user-friendly products and protect the environment.

The company also prioritizes the use of organic and recycled materials to meet consumer demand in the era of green, circular economy trends.

Sustainable production helps the company manage the consumption of power, water and chemicals, as well as the discharge of exhaust fumes, creating a better working environment. Our products meet growing customer requirements, enhancing the company’s prestige and helping it attract more orders in the context of increasingly fierce competition.

Ha Duyen & Ngoc Thuy   LINK

Vietnam News Posted by Henig at KTFA 12-29-2022

KTFA:   Vietnam:

Henig:  Efforts underway to boost trade with UK

06:00 | 29/12/2022

(VEN) - Both capital and production technology of domestic enterprises remain modest, it is necessary to connect resources in order to help businesses efficiently take advantage of the UK-Vietnam Free Trade Agreement (UKVFTA), said Ngo Chung Khanh, Deputy Director of the Ministry of Industry and Trade’s (MoIT) Multilateral Trade Policy Department in a talk with Vietnam Economic News’ Hoa Quynh.

What is your assessment of the UKVFTA’s impact on UK-Vietnam trade?

We have seen that the UKVFTA has benefited both sides. The UK’s exports to Vietnam are increasing significantly, helping to balance the bilateral trade and at the same time enabling Vietnamese manufacturers to make use of more UK sources of raw materials, technologies and products to improve production capacity.

Vietnamese enterprises export coffee, pepper, vegetables, garments, and footwear to the UK, achieving growth of almost 100 percent and implementing market diversification strategies.

To what standards and practices should Vietnamese exporters pay attention in trade with the UK?

In addition to preferential tariffs under the UKVFTA, other advantages for exports to the UK are related to that market’s diversification of supply sources. However, the UK’s high standards and different thinking about environmental and labor issues are factors to which businesses need to pay attention. The UK has a traditional relationship with its former colonial countries, India and Pakistan for example, which compete with Vietnam’s strong products, such as rice.

Despite certain difficulties, the UK is a high-potential market for Vietnamese exports. However, many Vietnamese exporters are not confident of entering a new market with strict standards and barriers like the UK, hampering achievement of Vietnam’s targets related to the UKVFTA. While both capital and production technology of domestic enterprises remain modest, it is necessary to connect resources in order to help businesses efficiently take advantage of the UKVFTA.

What will the Ministry of Industry and Trade do to help enterprises take advantage of the UKVFTA?

The relevant authority needs to replicate successful export models and implement market access sharing programs for businesses in order to maintain export growth to the UK.

Based on the experience of UKVFTA implementation since May 2021, the Ministry of Industry and Trade will work with localities and sectors to promote the agreement in accordance with the actual needs of enterprises. The ministry will build and operate an FTA portal to increase regular interaction with businesses.

We expect that local authorities will have a stronger involvement in the UKVFTA implementation. The government recently approved a project to evaluate FTA implementation efficiency in localities, which is expected to boost local authorities’ activity in accompanying enterprises’ FTA exploitation.

Hoa Quynh   LINK

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Henig:  Potential remains for Vietnam’s exports to EU

10:49 | 28/12/2022

The Ministry of Industry and Trade (MoIT) on December 27 organized a conference to review the implementation of the EU-Vietnam Free Trade Agreement (EVFTA) over the last two years.

Speaking at the event, Deputy Minister of Industry and Trade Tran Quoc Khanh said that since August 2020, Vietnam and the EU have seen positive results in their two-way trade despite the COVID-19 pandemic.

In the first year of the EVFTA’s implementation, bilateral trade between Vietnam and the EU reached US$54.9 billion, up 12.1 percent over the same period the previous year, of which export revenue reached US$34.5 billion, up 11.3 percent.

In the second year, it reached US$61.4 billion, up nearly 11.9 percent, of which exports reached US$45 billion, up 17 percent.

In the first 11 months of 2022, two-way trade turnover reached US$57 billion, up 14 percent over the same period last year, of which exports reached US$43.5 billion, up 21 percent. Key export products from Vietnam recorded positive growth such as textiles, footwear, and seafood, with year-on-year increases of 24 percent, 19 percent and 41 percent, respectively.

The results show that Vietnamese enterprises have taken advantage of the EVFTA. Four out of ten Vietnamese enterprises have benefited from the EVFTA, according to the Vietnam Chamber of Commerce and Industry.

However, according to the MoIT, the EU market still offers opportunities for Vietnamese enterprises despite facing difficulties in accessing the market.

Deputy Minister Khanh said that Vietnam's brand has not been built or is not popular in European countries.

The value and benefits that Vietnamese businesses earn are not commensurate with their potential, he added.

Ngo Chung Khanh, Deputy Director General of the MoIT’s Multilateral Trade Policy Department, said that the ministry plans to coordinate with other ministries and agencies to further provide enterprises with EVFTA-relating information.

Besides, the ministry will also assess the implementation of the EVFTA in provinces and cities nationwide through FTA INDEX which is expected to launch in late 2023.

The ministry will open training courses for enterprises, and speed up solutions to support enterprises in accessing and taking advantage of the EVFTA.

VNA    LINK

KTFA Members "News and Views" Thursday Afternoon 12-29-2022

KTFA:

Clare:  In numbers, the central bank reserves increased by 46% of the foreign currency

12/29/2022

The Central Bank of Iraq achieved a value of assets amounting to about 200 trillion dinars during the month of November, with an annual increase of 36%.

The economist Manar Al-Obeidi said in a statement, which {Euphrates News} received a copy of, "The central bank's reserves amounted to 96 billion US dollars, an annual increase of 46%, and the value of the cash currency exported increased to reach more than 84 trillion Iraqi dinars, an annual increase of 10%.

And that, "depending on the value of reserves in foreign currencies, the value of the exported monetary currency, and the value of gold in the global markets."

He pointed out, "The value of one gram of gold is equivalent to 46,000 Iraqi dinars, with an annual increase in the value of the dinar, which amounted to 84%, as the value of one gram of gold was equivalent to 67,000 dinars in November of last year." 

Al-Obaidi continued, "The lowest actual value of the Iraqi dinar against gold reached in the fifth month of 2021, when one gram of gold reached its actual value of 72,000 dinars."

He explained that "this rise in the value of the Iraqi dinar as a result of the growth of reserves and offset by less growth in the exported monetary currency, which contributed to strengthening the actual value of the Iraqi dinar against the price of gold."     LINK

Zeeman:  good article claire. this clearly shows that the cbi is making big money while the citizens are getting shafted. imo the pressure is mounting from all sides for a big change soon

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Henig:  MP from Maysan: The government is required to be frank with the people about the party responsible for the high price of the dollar

Al-Amarah / NINA / - The MP of Maysan Governorate, Ruqayyah Al-Nuri, confirmed: "The high price of the dollar represents a great suffering added to the poor citizen."

Al-Nouri added, "The government must work hard to save the poor from the catastrophe of the rising dollar and market prices and foodstuffs," calling on the government to quickly address this problem as it threatens the food and life security of poor citizens.

She explained that: "The rise in the price of the dollar certainly came with American interventions and measures hostile to the power of the Iraqi people, to fight them at their foodstuffs to inflame the street against the current government of services and reconstruction."

She indicated that the government is required to be honest with the people and announce the party that caused the rise in the price of the dollar.   LINK

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Henig:  Parliamentary Finance: The Central Bank bears the rise of the dollar and the government's move to the US Federal Reserve

  {Economic: Al Furat News} The Parliamentary Finance Committee held the Central Bank of Iraq responsible for the rise in dollar prices, while it revealed a government move by the US Federal Reserve.

Committee member Moein Al-Kazemi said; For the program “Alam al-Mustra” broadcast by Al-Furat satellite channel this evening: “It is known that the House of Representatives is in a state of legislative recess, and it ends on the 8th of next month, and on the 9th of it, the parliament meets and the Speaker of the House of Representatives is absent from this event. The rise in the price of the dollar.

He pointed out, "The problem of the House of Representatives is the delay in resolving the 25 specialized committees and their incompleteness until this moment, and 70 replacement deputies have not been distributed, and the committee chairs are still run by the elderly."

Al-Kazemi added, "The Central Bank of Iraq bears the responsibility for raising the exchange rate, and the government must take serious measures to rein in this hike, and there should be a ready plan to address errors in the window for selling the currency."

And he stated, "The Iraqi-Iranian circulation was more during the time of the past government than the current government, and about 7 million dollars were spent, with the knowledge of the American side; but there are mistakes on the part of the Central Bank on the part of the currency window, and the money is not transferred to import."

He pointed out, "The central bank's agreement now with an international company to verify Iraqi financial transfers, and we should communicate with experts and the private sector in discussing this crisis and benefit from economic experts," calling for "the formation of a staff to deal with raising the price of the dollar." 

Al-Kazemi continued, "There is a race today to buy the dollar, unlike yesterday, because of the media and psychological obsession, and the government must work hard not to keep any justification in front of the American side, and there must be a new method for disbursing the dollar through direct dealings with merchants instead of dealing with the window of private banks."

He attributed the rise in dollar prices to "several reasons, including the imposition of the US ban on 4 Iraqi banks, and then informing the Central Bank of the procedures for money transfers," describing them as "shocking measures that were not in prior coordination with the Iraqi government." 

And Al-Kazemi added, "The measures taken that stopped some money transfers and the ban led to other banks' apprehension and fear of entering the currency auction in addition to political reasons, and the Council of Ministers assigned the Minister of Finance to approach the US Federal Reserve, so that there would be coordination with the Central Bank of Iraq in this regard."

On the other hand, Al-Kazemi criticized the dollar exchange procedure for travelers via Master Card, describing it as "it will not work to provide dollars in the local market, which is a discouraging experience."    LINK

Clare:  After a rapid collapse of the Iranian currency.. the resignation of the head of the Central Bank of Iran

12/29/2022 

 Days after the historic collapse of the Iranian currency in the markets, the head of the Central Bank of Iran, Ali Saleh Abadi, resigned from his post today, Thursday.

 The official Iranian news agency, IRNA, confirmed that in the meeting of the Iranian cabinet headed by Ibrahim Raisi, “Ali Salehabadi” resigned and “Mohammed Reza Farzin” was appointed as his successor.

Mohammad Reza Farzin is a professor at Allameh Tabatabazi University in Iran and has a proven track record in the banking sector, including the CEO of the Iranian “Melli” Bank, the head of the “Karavrin” bank, and a member of the board of directors of the “Kashwarzi” bank.

Farzin also held the position of Chairman of the National Development Fund of Iran and Deputy Minister of Economy for Economic Affairs in the government of Mahmoud Ahmadinejad.

Iran witnessed a historical decline in the exchange rate, as the dollar traded in the local markets at more than 440,000 Iranian riyals.     LINK

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Clare:  Association of Banks: Central Bank measures will restore the money market to balance

12/29/2022

On Thursday, the Association of Iraqi Private Banks confirmed its support for the Central Bank's measures to control the money market.

The Association's advisor, Samir Al-Nusairi, said in a statement, "Our banks, which were identified by the Central Bank, considered them additional outlets for providing US dollars to traveling citizens, which they need for the purposes of travel and treatment, at the price of 1470 dinars, with borders and a flexible and smooth mechanism throughout the days of the week, in addition to Fridays, Saturdays and official holidays." 

He added, "The Central Bank worked to increase the weekly share of these banks to 1,800,000 dollars, and under on-site and field follow-up by the bank," noting that "our banks have always been known for their national and supportive role to support the central bank's measures in the economic crises that Iraq has gone through previously and now." .

He stressed that “the decisions issued by the Central Bank, and the new mechanisms and instructions related to raising interest rates and the special commission for the investment financial products of the Central Bank, so that banks can invest their surplus liquidity with the bank according to special details, and open the windows of forward investment (90 days, 182 days, 364 days) and issue new mechanisms.” For deposits for banks wishing to participate in the currency window, it allows banks to purchase any amounts in foreign currency and deposit them in accounts used for external transfers only, and interest / returns are paid on those balances according to the new mechanism.

He pointed out that "the Central Bank took measures during the past two weeks to increase the supply and provision of the dollar to merchants, businessmen and importers through banking outlets directly without the mediation of intermediaries, which will restore the money market to its balance regardless of any political news, fabrications, fabrications and non-specialized analyzes."

Al-Nusairi explained, "The central bank's assurances of the availability of foreign cash reserves exceeding $96 billion and its ability to supply dollars in sufficient quantities to meet the requirements of demand will inevitably enable it to control the money market quickly."

Al-Nusairi called on the competent government agencies to "assign the Central Bank's procedures in accordance with its tasks and duties contained in its law in force and its previous successful experiences, to control the exchange rate," calling on "the national media with all its visual, audio and print means to support the procedures and decisions issued by the Central Bank."

He pointed out that "the governor of the Central Bank confirmed that the economic situation of our resources from the US dollar cannot be compared to the case of Lebanon and neighboring countries," stressing that "the current rise is temporary and will return to its previous levels, and the Iraqi dinar will continue to be strong and stable."   LINK

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Clare:  Al-Sudani Advisor: The external transfer platform meets 90% of the market demand for currency

12/29/2022

Baghdad - Conscious - Nassar Al-Hajj

Today, Thursday, the advisor to the Prime Minister, Mazhar Muhammad Salih, clarified about fluctuations in the exchange rate of the dollar in the Iraqi market, while confirming that the external transfer platform meets 90% of the market demand for foreign currency.

Saleh said, to the Iraqi News Agency (INA), that "Iraq is one of the largest countries in the region in its current reserve financial capabilities," explaining that "rumors and gossip began to circulate among people as a result of the fluctuations in the exchange market, following the adoption of international controls that surrounded the work of the external transfer platform." Which meets 90 percent of the market demand for foreign currency.

He added, "We would like to reassure everyone that, with the increasing transparency of the information provided by the commercial community requesting financing its import in foreign currency through effective mediation by the Central Bank and passing through the international auditing platform, the collection of foreign currency is increasing to meet the requirements of foreign trade and is achieved immediately and at the official exchange rate of 1460 dinars to the dollar.

He pointed out that "the financial market is in an adjustment phase to rearrange its conditions in the correct and orderly direction, and there are no concerns," noting that "the government economy constitutes the center of gravity in organizing economic life and possesses sufficient basic ingredients in supporting and stabilizing the market economy."

The prime minister's advisor called for "rejecting misleading rumors launched by speculators and enemies of stability."   LINK

KTFA Wednesday Night CC "An Extraordinary UB2B" 12-28-2022

KTFA

Wednesday Night Conference Call

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

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"Iraq and Vietnam News" Posted by Henig at KTFA 12-28-2022

KTFA:

Henig:  The prices of oil are close to $86 a barrel

Baghdad / NINA / - Before closing today, Tuesday, global oil prices approached the barrier of $86 a barrel.

Brent crude futures reached $85.82 a barrel, more than a dollar higher than yesterday's price.

US crude futures contracts reached $80.59, also higher by more than $1.   LINK

Henig:  Legal expert: The US is obliged to salvage the economic situation in the country

Baghdad / NINA / - Legal expert Ali Al-Tamimi confirmed: The United States is obligated to save the economic situation in the country.

He told the National Iraqi News Agency / NINA /: The strategic agreement between Iraq and the United States, according to Article 27 of it in all its paragraphs, made it clear that the United States of America is obligated to assist Iraq economically in the event of crises and to intervene to save the situation if it deteriorates economically in Iraq.

Al-Tamimi added: This article is binding on the United States, and Iraq can demand it formally first through bilateral communication, especially in light of the significant shift in the dollar price, which came due to the procedures of the US Federal Bank with regard to foreign transfers, and Iraq can ask it to implement the provisions of the agreement in force.

He explained: In the event of non-implementation, Iraq can resort to the United Nations and ask it to oblige the United States to implement it, because the strategic agreement is deposited with the United Nations under Article 102 of its charter.

Al-Tamimi continued: The United States is an occupying country and it is obligated under the four Geneva Conventions to help countries economically in light of its control over the price of the dollar in the world, and Iraq can benefit from that to solve its current crisis.   LINK

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Henig:  Iraqi dinar trembles as US fights currency flow to Iran

For years dollars have been channeled to Iran and Syria, which are under US sanctions, via state-run foreign currency auctions

 Sinan Mahmoud  Baghdad  Dec 26, 2022

Recent measures taken by US authorities to tighten the channelling of dollars to Iran from Iraq have decreased the value of the Iraqi dinar on the black market, government officials and traders said on Monday.

The Iran-backed Iraqi government has been struggling to control the exchange rate to contain mounting public anger over soaring goods prices.

The dollar exchange rate in the black market has been hovering around 1,550 Iraqi dinars from around 1,470 dinars, Dhirgham Hameed, owner of a Baghdad-based exchange company, told The National.

“The dinar has been trembling against the dollar since early this month, wreaking havoc in the market,” Mr Hameed, 44, said.

In 2004, the Central Bank of Iraq introduced the foreign currency auction as one of its policy tools to achieve monetary stability.

Through that auction, the government has succeeded in controlling the exchange rate on the black market.

For years, the official rate for banks and exchange companies was 1,182 dinars, while the rate on the street was around 1,200 dinars.

However, the process has been mired with accusations of corruption, money laundering and the channelling of dollars to Iraq’s neighbours, Iran and Syria, using forged bills. Both countries are under punishing US sanctions.

Since then, the US has blacklisted a number of Iraqi banks that deal mainly with Iran. The US sanctioned Iraq's Al Bilad Islamic Bank for dealing with Iran's Islamic Revolutionary Guard Corps in May 2018.

Amid a liquidity crisis due to plummeting oil prices on the international market, Iraq’s Central Bank devalued the dinar in December 2020 to 1,460 dinars per dollar for banks and 1,470 dinars for individuals.

The interim government argued the move would also curb the flight of the “cheap dollar” outside the country.

But that didn’t stop the outflow of much-needed hard currency.

The US Ambassador to Iraq has complained to Iraqi officials on many occasions that the dollar was still being sent to Iran, a Central Bank official and a lawmaker said.

But Mohammed Shia Al Sudani's government, which took office in late October and is close to Iran, has not taken any action, they said.

“When there was no action from the government, the Federal Reserve bank started to apply scrutiny measures on foreign transactions and that has delayed the process of releasing the money from the US to cover the imports and other needs,” the Central Bank official said.

Both spoke on condition of anonymity as there is no government statement on the latest US measures.

How the process goes

Each dollar Iraq gains from selling crude oil goes to an account at the Federal Reserve Bank of New York, and Iraq makes withdrawals to pay government salaries and imports.

Oil revenue makes up nearly 95 per cent of the federal budget and the war-torn country depends heavily on imports to meet the demand for food and materials for key sectors of the economy.

The Federal Reserve Bank of New York supplies Iraq with hard currency on request from the Iraqi government, either in cash or foreign transactions.

While some of these funds are used to cover government imports and other requirements, much of it is passed on to commercial banks, ostensibly for private sector imports in a process that was hijacked long ago by Iraq’s money-laundering cartels.

The rest of the money is added to the international reserve.

Thanks to Iraq’s growing oil revenue, the Central Bank of Iraq has about $96 billion in foreign exchange reserves, Mr Al Sudani announced early this month.

As of last month, the CBI sold an average of $240 million to $250 million a day, said another owner of an exchange company, who asked to remain anonymous.

Only 10 per cent to 20 per cent of the money was cashed out to be distributed to banks and exchange companies and then to individuals, while the rest was sent to accounts in Dubai, Turkey, Amman and China to cover private sector imports, he said.

“Iraq has no problem with the money at all, it has good reserves,” the exchange company owner said. “It sounds as if the issue is politically motivated because the Americans are upset.”

Over the past 19 years, the Federal Reserve has never delayed a request or transaction from Iraq, he said. “They used to approve any bill immediately,” he added.

“But since early this month, the Americans have started applying scrutiny measures on foreign transactions and the new process has delayed each transaction for up to two weeks,” the exchange company owner said.

He added that most of the requests were being rejected due to suspicions that some banks are linked to Iran.

Since then, daily transactions have dropped from around $200 million to between $20 and $30 million a day.

“The reserves have been dried up in the accounts abroad and that has pushed up the demand for the dollar in the local market to cover imports,” he said.

To control the rate at the black market, the government has asked the CBI to take urgent steps to compensate for a dollar shortage in the local market.

It reduced the exchange rate for individuals from 1,470 dinars to 1,465 dinars to cover travel for the Hajj pilgrimage, medical treatment and study.

It also asked the CBI to help private banks strengthen their non-US dollar foreign currency reserves such as the Chinese yuan, the euro, the Emirati dirham and the Jordanian dinar.

But these measures failed to strengthen the currency.

“We are not optimistic and we believe that the worst is yet to come unless the government applies urgent, immediate and effective measures,” Mr Hameed said.

The current official dinar to dollar exchange rate is 158,000  LINK

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

Henig:  CBI issues recommendations to merchants and banks regarding exchange rates

Baghdad-INA

The Central Bank of Iraq-CBI issued on Tuesday, its recommendations to the merchants and banks regarding exchange rates.

“CBI Board of Directors held a meeting to discuss the repercussions and indicators of the rise in exchange rates in the local markets, the temporary pressures resulted from effect of the internal and external factors on foreign currency exchange rate," CBI media office stated, in a statement received by the Iraqi News Agency (INA).

The statement  added, "due to adopting mechanisms to protect the banking sector, customers and the financial system, as all foreign trade requirements (for the purposes of documentary credits or transfers) are fully covered by the official price (1465) dinars to the dollar for documentary credits and (1470) dinars to the dollar for transfers."

CBI called on merchants to exchange currency with the  banks directly and not resort to brokers and speculators to avoid charging their imports with undue commissions and expenses, referring in this regard to what was issued by the Council of Ministers in its decision No. (351) for the year 2022 regarding non-payment of customs duties and amounts of tax secretariats in advance. This will reduce excess loops, ease procedures, and remove costs resulting from pre-set prices problems.”
 
CBI stressed, "Banks must assume their responsibilities in facilitating and expediting procedures for their customers to ensure their access to financing with the best banking practices and with the least amount of loops, taking into account the established legal requirements."    LINK

Vietnam:

Henig:  Agro-forestry-fishery exports to UK overcome barriers

06:00 | 28/12/2022

(VEN) - The UK-Vietnam Free Trade Agreement (UKVFTA), effective since May 1, 2021, has created favorable conditions as well as challenges for Vietnamese agro-forestry-fishery exports to this market.

The UKVFTA’s tax reduction commitments benefit many Vietnamese export products, especially agro-forestry-fishery products. It has eliminated taxes for more than 94 percent of the total 547 tariff lines applied to fruit and vegetables. The import tax rate applied to Vietnamese shrimp has also been reduced from 10-20 percent to zero. Many wood products will also be tax-free within the next five years.

The UK is one of the top five export markets for Vietnamese seafood and one of the three largest importers of Vietnamese wood products. Cashew nuts, coffee and rice are among traditional Vietnamese exports to the UK. In 2021, Vietnam exported to the UK 34,650 tonnes of coffee worth US$66.16 million. In the first half of 2022, coffee exports increased 180 percent year-on-year.

At a recent workshop on taking advantage of the UKVFTA to tap the potential of the UK market, Consul General of the UK in Ho Chi Minh City Oliver Todd said the UK considers Vietnam an important trading partner in Southeast Asia and believes it can compete with India and Indonesia to become a new agro-forestry-fishery supplier for the UK.

However, Vietnamese agro-forestry-fishery exporters have to meet strict UK requirements. Moreover, the UK will sign FTAs with 19 countries and territories, while at the same time preparing for participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, making the UKVFTA less beneficial to Vietnamese businesses. “Although it faces a scarcity of supply, the UK market demands high-quality, low-cost products - this is a hindrance for Vietnamese exporters,” said Nguyen Canh Cuong, Vietnamese Trade Counselor in the UK.

To promote Vietnamese farm produce exports to the UK, the Vietnamese Trade Office has organized workshops and online meetings to connect Vietnamese exporters with UK importers. Through such activities, some Vietnamese companies have found opportunities to export fruit and vegetables to the Birmingham Wholesale Market - one of the largest integrated wholesale markets in Europe. Some UK companies also have plans to import Vietnamese products, such as cashew nuts and coconut meat jam.

The Vietnamese Trade Office in the UK provides Vietnamese exporters with updated information about the UK market. Nguyen Canh Cuong said the office will diversify activities to expand access to the UK market for Vietnamese exporters, especially those operating in the agro-forestry-fishery sector.

The UK applies a free trade policy and has high demand for farm produce imports. Vietnamese agro-forestry-fishery exporters should take advantage of the UKVFTA and adopt a strategy to access potential partners for increased exports.

Bao Thoa   LINK

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

Henig:  FTAs boost Vietnam-Latin America trade

06:00 | 27/12/2022

(VEN) - Trade between Vietnam and Latin America has experienced impressive growth thanks to efficient implementation of free trade agreements (FTAs).

Tremendous growth

In the first 10 months of 2022, trade between Vietnam and Latin American countries reached US$18.7 billion (up 10.5 percent from the same period in 2021), including Vietnam’s exports worth US$10.2 billion (up 5.3 percent) and Vietnam's imports worth US$8.6 billion (up 17.3 percent). Apart from major markets of Brazil, Mexico, Argentina and Chile, newly emerging markets of Panama, Colombia and Peru have become bright spots in Vietnam's trade with Latin America.

In terms of Vietnam’s trade exchange, Latin America has always been among the markets with the highest growth. Not only a potential export market for Vietnam's key products such as garment and textile, footwear, and agricultural and aquatic products, Latin America is also an important source of raw materials for the Vietnamese processing industry with such products as corn, soybean, and animal feed.

Vietnam and its Latin American partners are efficiently implementing free trade deals to create leverage in economic, trade and investment ties, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Vietnam-Chile Free Trade Agreement and the Vietnam-Cuba Trade Agreement, which have all been boosting trade and investment relations.

Phan Minh Thong, Chair of Phuc Sinh Group, a successful exporter to Latin America, said his group has sold goods to Colombia, Chile, Peru, and Mexico and imported a number of items from these countries. Phuc Sinh also bought pepper from Brazil, he added. In 2019, before the pandemic, Phuc Sinh exported goods worth US$830,000 to Latin American markets, with the value growing more than 450 percent to reach US$4.6 million in 2021. The Latin American market has its own unique, interesting business and indigenous cultures, and market approach suitable to this market would help exporters improve their niches and efficiency, Thong said.

Major room for trade

Despite its growth, the US$21.4-billion bilateral trade accounts for only three percent of Vietnam’s global trade, suggesting major room for trade development with Latin America.

Ngo Manh Khoi, Head of the Vietnam Trade Office in Argentina, said Argentina is one of the four members of the Southern Common Market (MERCOSUR) with nearly 300 million residents and a gross domestic product (GDP) of US$2.2 trillion, which has a high demand for textiles, garments and agricultural products. Argentina imports 45 million tonnes of coffee each year, 80 percent from Brazil. In recent years, Vietnamese coffee enterprises have surveyed the Argentinian market and see potential opportunities to increase coffee exports, he said.

However, according to Phan Minh Thong, Chair of Phuc Sinh Group, the cost of transportation to Latin American markets is too high, importers often make deferred payments, and the language barrier is also a problem, as Spanish is more popular than English in these markets.

Thong advised exporters to Latin America to study their customers, norms, standards and regulations/trade barriers of regional markets if they are to reach favorable, efficient trade.

Vo Thi Phuong Lan, Chair and General Director of Amerasian Shipping Logistics Corp (ASL) recommends that enterprises choose shipping lines going directly to Latin American ports such as those in Mexico, Cuba, and Argentina, and leading logistics companies that offer package solutions to save time and reduce costs.

The Ministry of Industry and Trade is building a project for sustainable development of trade and industrial cooperation with Latin American markets to 2030.

Duyen Duong   LINK

Some "Tuesday News" Posted by Clare at KTFA 12-27-2022

KTFA:

Clare:  A third of Parliament mobilizes.. The special session on the "dollar crisis" is approaching

 Baghdad

Today, Tuesday, Representative Muhammad Qutayba al-Bayati revealed the date of the special session on the dollar crisis in the Iraqi markets, indicating that the situation is dangerous and its consequences may be reflected in the markets and the economy in general.

Al-Bayati said in an interview with (Baghdad Today), that "so far, the total number of parliamentary signatures in support of holding an extraordinary session to discuss the dollar crisis file, after an unprecedented rise in exchange rates recently, has reached 100." deputies, and the numbers are constantly increasing.”

He added, "It is expected that the session will be held next week after submitting the request to the Presidency of the House of Representatives," pointing out that "the situation is dangerous for various reasons, given the economic pressure it causes, not on the weak segments, but even on traders due to the continuous rise in exchange rates.”

He pointed out that "the situation needs immediate and other solutions on the medium and long distances in order to avoid any similar cases that will negatively affect the markets and the economy in general."   LINK

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

Clare:  CBI statment

December 27, 2022

The Board of Directors of the Central Bank of Iraq met on 12/27/2022 and discussed the repercussions and indicators of the rise in exchange rates in the local markets and the temporary pressures the foreign currency exchange rate has been exposed to for days resulting from internal and external factors, given the adoption of mechanisms to protect the banking sector, customers and the financial system.

Whereas, all foreign trade requirements (for the purposes of documentary credits or transfers) are fully covered by the official price (1465) dinars per dollar for documentary credits and (1470) dinars per dollar for transfers.

Therefore, we call upon the merchants to review the banks directly and not resort to brokers and speculators to avoid charging their imports with undue commissions and expenses, referring in this regard to what was issued by the Council of Ministers in its Resolution No. (351) of 2022 regarding non-payment of customs duties and amounts of tax secretariats in advance, as it will lead This aims to reduce redundant loops, ease procedures, and remove costs resulting from pre-demarcation problems.

At the same time, we urge banks to assume their responsibilities in facilitating and expediting procedures for their customers to ensure their access to financing with the best banking practices and with the least amount of loops, taking into account the established legal requirements.

Central Bank of Iraq
Media Office
12/27/2022

https://cbi.iq/news/view/2182

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

Clare:  Urgent.. Governor of the Central Bank of Sudan: The foreign currency crisis is urgent for technical reasons

12/27/2022 

Prime Minister Muhammad Shia Al-Sudani met, this morning, Tuesday, with the Governor of the Central Bank of Iraq, Mustafa Ghaleb Makhaif.

Al-Sudani listened to a detailed presentation by the bank's governor regarding the rise in the foreign currency exchange rate, and the most important measures taken by the bank in this field.

The Prime Minister urged the Central Bank to achieve general stability of prices and the exchange rate, in accordance with the tasks stipulated in Articles (3 and 4) of the Central Bank of Iraq Law, which stipulate that the Central Bank aims to achieve stability in the local exchange rate, organize and monitor the work of banks and enhance safety and efficiency. Payment systems and payment system development.

The prime minister stressed the need for the bank to take the necessary measures to prevent illegal speculation and everything that harms the local market and leads to higher prices.

 Al-Sudani also urged the activation of steps to sell foreign currency at the official prices to citizens by purchasing with electronic cards, opening sales outlets for travelers or clients outside Iraq, or financing foreign trade, in accordance with the fundamentalist contexts and international standards for opening documentary credits and remittances.

The governor of the bank presented to the Prime Minister the positive position of the financial situation, stressing that the crisis over foreign currency is an emergency crisis for technical reasons, and coincided with the work of the new electronic platform and the delay in transfers due to the Christmas holidays.

The Governor of the Bank praised Cabinet Resolution No. 352 of 2022 to stop the work of pre-collection of taxes and customs for goods entering through government outlets, to prevent double taxation, and to collect them according to the approved contexts at border crossings.    LINK

 ATPInfinity:  IMO:  The TRIGGER*************************************

"*****urged the activation of steps to sell foreign currency at the official prices to citizens by purchasing with electronic cards, opening sales outlets for travelers or clients outside Iraq, or financing foreign trade, in accordance with the fundamentalist contexts and international standards for opening documentary credits and remittances.>>>>>>>>>>>>"

The Budget has the gun powder?

Clare:  Central Bank of Iraq: The rise of the dollar due to temporary pressures resulting from internal and external factors

2022-12-27 

The Central Bank of Iraq explained, on Tuesday, the reasons for the rise in the exchange rate of the US dollar.

And the exchange rates of the US dollar continued to rise against the Iraqi dinar, today, Tuesday, in the main stock exchange in the capital, Baghdad, and in the Kurdistan Region, to approach 160,000 dinars against 100 dollars, for the first time since its price was officially approved in the state budget at 146,000 dinars per year. 2020.

The bank stated in a statement received by Shafaq News agency; That "the Board of Directors of the Central Bank of Iraq met on 12/27/2022 and discussed the repercussions and indicators of the rise in exchange rates in the local markets and what the foreign currency exchange rate has been exposed to for days from temporary pressures resulting from internal and external factors, given the adoption of mechanisms to protect the banking sector, customers and the financial system."

And since all foreign trade requirements (for the purposes of documentary credits or transfers) are fully covered by the official price (1465) dinars to the dollar for documentary credits and (1470) dinars to the dollar for transfers.

The statement added; “We urge merchants to review banks directly and not resort to brokers and speculators to avoid charging their imports with undue commissions and expenses, referring in this regard to what was issued by the Cabinet in its Resolution No. (351) of 2022 regarding non-payment of customs duties and amounts of tax secretariats in advance, as it will lead to This aims to reduce extra rings, ease procedures, and remove costs resulting from pre-demarcation problems.”

The Iraqi Central Bank called on "banks to shoulder their responsibilities in facilitating and accelerating procedures for their customers to ensure their access to financing with the best banking practices and the least amount of episodes, taking into account the established legal requirements."    LINK

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

Clare:  Documents .. The Iraqi finance stops appointments, transfers and bonuses until the approval of the 2023 budget

2022-12-27

 Today, Tuesday, the Ministry of Finance issued instructions regarding the authority to spend money in ministries and non-related agencies.

And the ministry stated in a statement today that, based on the powers vested in the Ministry of Finance under the provisions of Article (13 - First) of Chapter Three of the Federal Financial Management Law No. (6) of 2019 as amended.

The ministry also decided to "stop appointments, transfers, placements, promotions, bonuses and promotions, as of January 1, 2023, and that the regulation of financial and legal matters will be according to the 12/1 exchange rate until the enactment of the general federal budget law for the year 2023."  LINK

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

Clare:  The stock market holds its last session this year

12/27/2022

The Iraqi Stock Exchange held today, Tuesday, the last trading session for the year 2022.

And a statement of the market, received by the Iraqi News Agency (INA), stated that, according to Law No. 74 of 2004 and the regulation issued by the Securities Commission, the Iraq Stock Exchange held the last trading session for the year 2022 in the shares of Iraqi joint stock companies.

The year 2022 is the organization of 236 trading sessions on the shares of listed joint-stock companies for the year 2022, except for official holidays,” pointing out that “the number of companies registered in the market reached (103) joint-stock companies, representing 43 companies in the banking sector, two companies in the communications sector, and five companies in the insurance sector.” Six companies in the financial investment sector, 11 companies in the services sector, 21 companies in the industrial sector, nine companies in the hotel and tourism sector, and six companies in the agricultural sector.

And he indicated that "the number of companies whose shares were traded amounted to 92 companies, including 36 banking companies, two telecommunications companies, five insurance companies, four financial investment companies, 10 service companies, 20 industrial companies, nine hotel companies and six agricultural companies," noting that "the number of shares traded amounted to (564) One billion shares, while the value of traded shares amounted to (521) billion dinars, and the number of executed contracts reached (135,597) contracts.

He continued, "The index of stock prices traded in December 2022 closed at (585.9) points, an increase of (3.53)."

He pointed out that "the number of companies that held a meeting of their public bodies amounted to (79) joint-stock companies, while the number of companies that distributed dividends amounted to (21) joint-stock companies."

Zanza referred to “the first stock trading session for the year 2023, which will be held on Monday, January 2, 2023.”   LINK

Monday Night KTFA CC with Frank26: "You're Fired!!!" 12-26-2022

KTFA

Monday Night Conference Call

Frank26:  12-26-22……YOU’RE FIRED !!!

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

Frank’s team is Walkingstick, Eddie in Iraq and others…

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=XrUc6DBrBA4

Frank26 and KTFA Members "News and Views" 12-26-2022

KTFA:

Frank26:  "ACCOUNTS CANCELLED TO THE CITIZENS... TO WIPE THE SLATE CLEAN!!!"........ F26

Clare:  Al-Rafidain announces the suspension of withdrawals and deposits in savings accounts for citizens

12/26/2022

Al-Rafidain Bank announced the suspension of withdrawals and deposits in savings accounts for customers, starting today, Monday, until Monday, 1/2/2023.

The media office of the bank stated, in a statement, that {Euphrates News} received a copy of it, that "according to the directives of the Central Bank of Iraq, and in order to pay the annual accounts, calculate the benefits for savings accounts, and organize budgets, the bank decided to stop withdrawals and deposits in savings accounts."

The statement indicated that "the bank also decided to close its doors in all branches on Monday, corresponding to 1/2/2023, and to stop conducting all transactions related to customers until the end of the annual inventory and audit."   LINK

Frank26:  "AND SO DOES THE IRAQI TRADE BANK!!!"........ F26

Clare: The Iraqi Trade Bank announces the suspension of all external and internal transfers

 12/26/2022

The Iraqi Trade Bank announced the suspension of all external and internal transfers, starting next Wednesday.

 Al-Samarf media stated, in a statement, of which {Euphrates News} received a copy, that “the work of all bank branches will be stopped, starting from Thursday (12/29/2022) at (12) noon. Also, all external and internal transfers will be stopped as of Wednesday corresponding to ( 28/12/2022) for annual inventory purposes.”

He indicated that "work will resume on Tuesday corresponding to (03/01/2023)."  LINK

**

Frank26:  "DON'T COLLECT TAXES!!!... BECAUSE THE EXCHANGE RATE WILL BE WRONG FOR THE 2023 BUDGET".......... F26

Clare:  In the document.. the central bank stops work by collecting taxes to deal with the rise in the dollar

12/26/2022

The Central Bank of Iraq stopped working by collecting taxes in advance to deal with the high exchange rates of the dollar. 

Today, Monday, the Central Bank of Iraq directed all licensed banks not to collect taxes in advance by importers during dollar transfers abroad for the purpose of import.

And a central bank document addressed to all banks, which I viewed (Baghdad Today), showed stopping the collection of taxes and customs fees in advance, and taxes are collected by the outlets upon entry of imported goods, while the bank attributed this procedure to the end of work in the fiscal year related to the 2021 budget that determined this. the condition.

This decision comes in conjunction with fears of the continued smuggling of hard currency "dollars" abroad under the pretext of import, which experts describe as "imaginary import", where the dollar is transferred abroad for the purpose of import, in return for the non -entry of already imported materials in exchange for it.    LINK

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

KandG:  I have a question based on 2 articles.  We all seen that the CBI's reserves are approaching 100B but I read another article that these reserves are held by the US Federal Reserve (below) - a corrupt, evil empire run by the Rockefellers / Rothchilds / Yellen / fake biden.  Why would this evil organization ever help the Iraqi citizens and also transfer wealth to us as investors / humanitarians??  IMO

And between Sanad, "The accumulation of foreign currency reserves in the Central Bank of Iraq and deposited with the US Federal Reserve, which will exceed 100 billion dollars and is constantly increasing, and it is difficult for Iraq to dispose of this large number, only America allowed five shipments per month to enter the country."

~~~~~~~~~~

Paulette:  I have said similar......the question is whether the Deep State is in control of Iraq or not.  Sudani was put in to place by Maliki and the Framework.  Is Sudani Deep State controlled or not???  Is Maliki????  I don't think anybody truly knows who is Deep State controlled……Time will tell.  Hopefully Soooooom!!!

To me, it appears the Deep State no longer has control of the CBI.  The Currency Sales have dropped significantly.  After Putin shut off much of the money laundering ability the Deep State had in the Ukraine, the Currency Sales in Iraq had a sharp increase.

Now, the volume of sales are normal to below.  I know the media is stating reasons for this including the CBI's new system errors but it all seems pretty coincidental.  I am very hopeful that the Deep State's ability to use Iraq for their corrupt activities has been terminated.  If not, we may be waiting longer than we want.

It is an interesting dichotomy happening right now as not only did the banks stop buying as much USD but the money changers have also in spite of the rate being at its worst since I have followed.  Why are the Money Changers reportedly being cautious with any purchases of USD when they could resell at a larger profit than they have been able to attain since the move to 1460.  

It is totally illogical unless they know that they don't want to be moving IQD to USD out of fear of being on the wrong side of an economic move by the CBI.

~~~~~~~~~~~

Zeeman:  i have said this here many times and you can add the wb  imf and the un they all work together and are corrupt. this  is a fact and not imo  IF the white hats are not in control - this was a very bad investment IMO.  Should have bought silver IMO

Paulette:  "very bad" ------->NO

Don't forget, Iraq's CBI has clearly told us their plans to Re-denominate their currency including adding denominations all the way to 25 Fils (1/40th of an IQD).  This logically requires a change in rate.  As long as that new rate directly applies to the current notes, we will have the windfall we all hope for.  

IMSO, the rate will have to apply to both new and old currency as the CBI has stated the 3 000's will coexist with the NSCN's for at least two years and upwards of ten years.

A few weeks back, the CBI again stated that they are not going to remove any currency denominations when they unveil the 20,000.  Personally, I want to believe the talk of the 20,000 was to educate the citizens as to the new 20 denomination that WS reported was coming when the NSCN's are released.  I hope I am right as the release of the 20 absent a 20,000 is another indication that the new rate will directly apply to all.

If the new rate does not directly apply to both old and new currency, the CBI will have created a Multi Currency Practice structure in violation of the IMF Article 8.  Therefore, the IMF will not be able to authorize a Reinstatement due to Iraq being in violation of Article 8.  This would also prevent full ascension to the WTO.  Certainly the plan for Iraq cannot be to run their country on USD forever.

The underlying fundamentals for holding IQD are sound.  The implementation of the "Delete the Zeros" project will tell us just how sound.  

Don't forget the silver market is greatly manipulated.  Hopefully we see a windfall from IQD prior to that manipulation being lifted.

MOakes:  Let's not forget that Frank has said that the USD will be in the basket of currencies.

Paulette:   Iraq economists have told us this years ago.  They advocate a basket of currencies that the IQD is valued against which is to have at least 5 currencies including the USD.  This negates value fluctuations that can be caused by drastic fluctuations of only one.

KTFA Members "Monday News" 12-26-2022

KTFA:

Henig:  Al-Rafidain Bank opens new branches soon to sell dollars to citizens

Baghdad / NINA /- Al-Rafidain Bank announced today, Sunday, the opening of new branches to sell dollar to citizens soon.

In a statement, it said, "New branches will soon be opened to sell dollar currency to citizens."

The bank added, "Citizens must issue MasterCard and submit official documents (civil status identity or national card, passport, housing card, and an active mobile phone number) for the purpose of granting the card and selling dollars to them."  LINK

Clare:  MP Al-Qaisi: The government is able to rein in the dollar at any moment it wants

 12-25-2022

Representative Mahmoud Hussein Al-Qaisi affirmed, on Sunday, that the government is able to rein in the dollar at any moment it wants.

Al-Qaisi said in a tweet via Twitter, "With the hundred billions stacked in the Central Bank's accounts, and with the tons of gold stored in them; in addition to the treasury bonds in the US Federal Bank, controlling the market is subject to a government decision capable of curbing the dollar at any moment the government wants." .

He added, wondering: "But when will you take this step!?".LINK

ATPInfinity:  IT'S Christmas and here is a gift! "With the hundred billions stacked in the Central Bank's accounts, and with the tons of gold stored in them; in addition to the treasury bonds in the US Federal Bank,...at any moment the government wants." .

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

Henig:  A deputy reveals the reason for the dollar's rise in Iraq.. What is the American role?

12/25/2022

{Politics: Al Furat News} Independent MP Mustafa Sanad revealed the "reason" for the rise in the exchange rate of the dollar in Iraq.

Sanad said in a statement, a copy of which was received by {Euphrates News}: “Criticize me, insult me, and laugh at what I say, but what you read, I swear to God, is the crux of the truth. The rise of the dollar in 2021 came because of the US-friendly government for the purpose of preventing the transfer of the dollar from Iraq to neighboring countries {Turkey and Iran.” Lebanon and Syria} for the purpose of punishing them.

He added, however, by saying: “But the rise of the dollar these days is completely different, as it came because of America itself, without a mediator, and the purpose is to prevent the dollar from entering Iraq mainly, for the purpose of punishing it lightly, and it is waiting for it at the dialogue table in early 2023 for the purpose of understanding about hot files such as the file.” Iran, the energy file, the future of US forces and security agreements.

And between Sanad, "The accumulation of foreign currency reserves in the Central Bank of Iraq and deposited with the US Federal Reserve, which will exceed 100 billion dollars and is constantly increasing, and it is difficult for Iraq to dispose of this large number, only America allowed five shipments per month to enter the country."

He added, "It is cowardice not to criticize the current government and the current parliament for watching the rise of the dollar and its impact on the people, especially since the current prime minister and the current deputies, including (me), have addressed the dollar file earlier and strongly criticized the rise that occurred at the time, and today our tongues are almost silent."

He continued, "But it is cowardly and inferior not to criticize the negative role of the Americans, to diagnose the colonial role and international blackmail, and to prevent the transfer of our money, amid strange silence from the political leadership!"

And the Central Bank of Iraq decided on the 15th of this month to reduce the exchange rate of the dollar to 1465 dinars, indicating that “reducing the price of selling the dollar to the beneficiary (the bank’s customer) who finances his imports with documentary credits, to be 1465 dinars instead of 1470 dinars to the bank {for the purposes of documentary credits} in the amount of 1455 dinars to the dollar instead of 1460 dinars," he attributed, "the increase is due to several factors, including the building of an electronic platform through which banks raise the requests of their customers.

"The state's finances in general are in excellent condition and at their best levels in decades," he added.The current supply of foreign currency is not related to resources, but rather to administrative and audit procedures, and we have taken a number of measures to expand the supply of foreign exchange to meet the public's demand for cash dollars."   LINK

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

Henig:  identifies two reasons

2022-12-25 03:35

 Shafaq News/ The exchange rate of the US dollar rose today, Sunday, to its highest level in years, as the value of 100 dollars on the Sulaymaniyah Stock Exchange reached more than 154 thousand Iraqi dinars, which was reflected in the commercial movement in the dollar market.

"The value of the dollar today has reached its highest level in years, as the value of $100 reached 154,250 dinars, which is the highest in years," financial expert, Shwan Ahmed, told Shafaq News agency.

 Regarding the reasons for this rise, the financial expert confirmed that "the first reason is that a week ago the central bank did not pump more than 130 million dollars, and the pumping ranged between 70 million to 130 million dollars, while the second reason is due to the holiday announced by the government on New Year's Day."

And about the repercussions of this rise between Ahmed; That "the movement of buying and selling has almost stopped in the stock market because the majority of currency traders sold the dollar yesterday at a lower price than today's price, but on the other hand, the selling of the dollar witnessed an increase by citizens due to the great rise that the US dollar reached today."

He continued, "Currency traders have begun to deal with caution in purchasing the quantities of dollars available in the markets."

On the period of the rise in the price of the dollar, the financial expert explained; It is expected that the rise will continue until the third of next January, which is the date for the Central Bank of Iraq to pump the dollar for the currency auction.

Shafaq News Agency correspondent in Sulaymaniyah said that every 100 pounds amounted to 184,000 Iraqi dinars, while every 100 euros amounted to 162 thousand Iraqi dinars, and every 100 Turkish lira amounted to 8,250 dinars. While the value of every 100,000 Iranian tomans was 3850 Iraqi dinars.  LINK

Clare:  Amidst a warning of a "hungry revolution"... Behind the scenes of the rise: American pressure to prevent dollar smuggling and the closing of party banks

2022-12-26

Member of the Parliamentary Finance Committee, Muhammad Nuri, attributed, on Monday, the unprecedented rise in the exchange rate of the dollar against the Iraqi dinar, to the agreement concluded between Iraq and the United States of America.

Nuri told Shafaq News agency, "The rise in the exchange rates of the dollar against the Iraqi dinar is due to stopping the promotion of cash dollar imports to Iraq, according to the agreement between the Central Bank of Iraq and the US Federal Bank, which entered into force three months ago."

He added, "As well as stopping banks affiliated with political parties that were working to smuggle the dollar and preventing it from entering the auction selling foreign currency to be smuggled through unofficial outlets."

Nuri pointed out that "there is American pressure by not paying cash oil import money from dollars to the Central Bank of Iraq to prevent smuggling it to neighboring countries, specifically Turkey and Iran."

And a member of Parliamentary Finance stated, "These measures led to limiting the sale of the dollar, and because of the merchants' need for foreign currency, the exchange rate rose."

Nuri stressed that "if there is no real decision and steps from the Prime Minister, Muhammad Shia'a al-Sudani, through pressure on the American side and the economics of political parties and limiting the smuggling of currency outside the country, the exchange rate of $100 will exceed $160."

Since last November, dollar prices have witnessed fluctuations against the Iraqi dinar, which gradually increased to reach its peak today, Monday, as the dollar exchange rate, until the moment of writing this news, reached more than 156 thousand dinars to 100 dollars.

In turn, the head of the "Enough" political movement, former MP Rahim al-Darraji, predicted the outbreak of a "hungry revolution" in Iraq due to the continued rise of the dollar in the local market.

Al-Daradji, a member of the former Parliamentary Finance Committee, told Shafaq News agency, "The continued rise of the dollar will lead to an increase in the prices of foodstuffs as well as medicines and other materials, and this matter will push to raise the poverty rate in the country, and this matter will lead to the withdrawal of the middle class." And not just the poor."

He added, "The repercussions of the catastrophe of the continuous rise of the dollar in the local market will lead to the anger of the Iraqi people, especially those with the middle and poor classes, and this matter may prompt the outbreak of a hungry revolution throughout Iraq, and this is what we hope will happen in order to remove the most corrupt political class that ruled Iraq." Over the years, it was the cause of the destruction of Iraq on various levels.    LINK

Some "Sunday Iraq Economic News" Posted by Clare at KTFA 12-25-2022

KTFA:

Clare:  MP Al-Qaisi: The government is able to rein in the dollar at any moment it wants

 12-25-2022

Representative Mahmoud Hussein Al-Qaisi affirmed, on Sunday, that the government is able to rein in the dollar at any moment it wants.

Al-Qaisi said in a tweet via Twitter, "With the hundred billions stacked in the Central Bank's accounts, and with the tons of gold stored in them; in addition to the treasury bonds in the US Federal Bank, controlling the market is subject to a government decision capable of curbing the dollar at any moment the government wants." .

He added, wondering: "But when will you take this step!?".  LINK

Clare:  The Sleeping Wool Shelf" pushes the price of the dollar in Iraq to about 160,000 dinars

2022-12-25

A member of the Iraqi Parliament, Alia Nassif, commented, on Sunday, on the decline of the dinar against the US dollar, to 154,000, while she indicated that "Shelf Al-Souf" is behind the exchange rate crisis.

Nassif wrote, in a tweet she posted on her personal account via Twitter, on the occasion of the rise of the dollar to 154,000 dinars and its direction towards 160, we say, "Sleeping, Sharif al-Sawf, and the dollar is suffocating your people."

She explained, "(Sherif Al-Sawf) here is not a person, but rather a system that deserves to be cursed for its corruption, which starts with those who have the idea of ​​the exchange rate and ends with those who oppose its return to 120,000."

And Nassif continued by saying: "I will see experts speaking about economic theories. Dad, we know your words. We have heard about economic theories at the hands of economics professors."

For his part, Representative Mustafa Sanad said, "The reason for the rise of the dollar is to stop transferring Iraq's entitlements from dollars by the US federal government, for the purpose of political blackmail and understanding."

The financial and economic advisor to the Prime Minister, Mazhar Muhammad Salih, had attributed, earlier today, Sunday, the continued rise in the price of the dollar against the Iraqi dinar to several external factors, while confirming the government's endeavor to control the exchange rate and achieve its stability in the market.

And the local markets in Iraq recorded a significant increase in the exchange rates of the US dollar against the Iraqi dinar, reaching its peak today, Sunday, when the price of one dollar reached 1540 dinars.   LINK

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Clare:  Sudanese advisor: Exchange rate fluctuations are temporary and there is no concern about Iraq's capabilities to impose stability

12-25-2022

Today, Sunday, the Advisor to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, identified new reasons for the rise in the exchange rate in the local markets, and while he revealed the existence of monopolistic activity within the market, the work of the monetary authority confirmed the stability of the exchange market with two paths .

Salih said in a statement to the Iraqi News Agency (INA) that the slight fluctuations in the exchange rate outside the current central rate have come for internal and external reasons, stressing that the internal reasons are related to the cash dollar, according to which the foreign currency window of the Central Bank is equipped with offices, exchange companies and banks annually by approximately $10 billion for travel and tourism purposes, which is a large number in meeting the needs of the local market for travel purposes in cash.

He added that "a monopolistic activity within the market acts outside the regulatory controls stipulated in the Anti-Money Laundering Law."

He pointed out that "the monetary authority is working to stabilize the exchange market in two tracks: the first: is represented by monitoring the exchange market to ensure the flow of foreign exchange from the dollar to the beneficiaries of the travelers, so that the share of one traveler has become 5 thousand dollars instead of 3 thousand dollars, with the possibility of collecting 10 thousand dollars for purposes

The treatment is for a single traveler as well, and this was accompanied by the opening of official outlets within the branches of government banks to provide citizens with foreign currency at the official rate in order to create an atmosphere of competition in the sale of foreign currency by expanding the money supply in dollars. 

And that "the second track relates to the dollar transferred through the window of the Central Bank abroad, which aims to finance foreign trade for the private sector, as these transfers to banks abroad constitute approximately 90% of the total demand for foreign currency through the window of the Central Bank of Iraq."

Salih revealed that there are objections from international compliance control regarding some transfers of incomplete information that private banks submit to foreign currency for the benefit of their customers and for their own, stressing that a number of transfers issued by requests from some private banks were rejected, especially since the platform through which transfer transactions pass It is the external entity that undertakes the rejection of incorrect requests, which are monitored by international compliance circles.” External".

He noted that "foreign reserves have become the strongest in Iraq's financial history, and its balance has perhaps exceeded one hundred billion dollars, which means there is no fear or concern about Iraq's financial capabilities in imposing stability in the dinar exchange rates as long as the matter is related to administrative and organizational affairs in dealing with external transfer and foreign currency trading." ".  LINK

Clare   An extraordinary session to host the Governor of the Central Bank

 The Parliamentary Integrity Committee revealed today, Sunday, its intention to hold an extraordinary session in the House of Representatives to host the Governor of the Central Bank.

A member of the committee, Hadi al-Salami, told Al-Furat News that: "Parliamentary signatures were collected to host the governor of the Central Bank, and an extraordinary session was held in the House of Representatives to find out the accurate information to show the real rise in dollar prices."

He added, "One of the reasons for the rise in the exchange rate of the dollar in the markets is that the US Federal Bank banned banks belonging to the parties that were smuggling the currency," returning it as "one of the most prominent reasons for the rise in exchange rates in the local market."

Al-Salami indicated that "there is a conflict of information about the reality of this rise, and that the Iraqi people have the right to know the facts through this hosting."

Prime Minister Muhammad Shia al-Sudani confirmed, during a press conference, a clear increase in the exchange rates of the dollar against the Iraqi dinar.

Al-Sudani referred to the refusal of transfers to fictitious companies, and there are exaggerated prices in the currency sale window, while he indicated that the price inflation operations in the currency sale window aim to remove the dollar from the country.

He also announced that the Central Bank of Iraq's reserves of foreign currency had reached $96 billion, and that the government was and still is monitoring the central bank's policy to ensure market stability.

Today, Sunday, the central Al-Kifah and Al-Harithiya stock exchanges in Baghdad closed at 154,300 Iraqi dinars for 100 dollars, while the exchange rates for the dollar this morning were 153,450 dinars for 100 dollars. 

The buying and selling prices also increased in exchange shops in the local markets in Baghdad, where the selling price reached 154,750 Iraqi dinars, while the purchase price reached 153,750 dinars for every 100 dollars.   LINK

"Vietnam and Iraq News" Posted by Henig at KTFA 12-25-2022

KTFA:

Henig:  Al-Sudani stresses keenness to achieve economic integration with neighboring countries and the region

12/24/2022

{Local: Al Furat News} Prime Minister Muhammad Shia Al-Sudani affirmed today, Saturday, keenness to achieve economic integration with neighboring countries and the region.

A statement from his office, of which {Euphrates News} received a copy, stated that: “Al-Sudani received a delegation of journalists and media workers from various Egyptian media outlets, headed by the President of the Supreme Council for Media Regulation, the Egyptian Minister of Information, Karam Kamel Ibrahim, in the presence of the President of the Media and Communications Authority, and the President of the Union of Arab Journalists. Iraqi Journalists Syndicate.

The head of the Egyptian delegation, according to the statement, conveyed the greetings of Egyptian President Abdel Fattah El-Sisi to the Prime Minister, and also congratulated Al-Sudani on the occasion of forming the government and assuming his duties as Prime Minister.

Al-Sudani welcomed the "Egyptian media delegation," calling on them to "visit the Basra governorate and see the ongoing preparations for the Basra Gulf Championship 25, which will start on the sixth of next January."

He stressed, "Iraq went through difficult circumstances that it was able to overcome, and its children have stories of sacrifice in the war against ISIS that dazzled the world." and everything that enhances the security of the region.

Al-Sudani also stressed "the keenness to achieve economic integration with neighboring countries and the region, in the path of achieving development and prosperity for the Iraqi people, and the brotherly and friendly peoples."   LINK

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Henig:  Exchanging dollars in banks is a practical approach to achieve stability in the exchange market, says PM advisor

Baghdad-INA

The financial advisor to the Prime Minister, Mudhar Muhammad Salih, confirmed on Saturday, that applying the mechanism for selling dollars in banks is a correct practical approach to achieving stability in the exchange market, pointing out that the monetary policy of the Central Bank of Iraq-CBI continues to provide options as well to achieve this goal.
 
"The new procedures in providing wide and multiple official outlets for exchanging dollar cash through the government banking system, with an increase in the allocation for one person to 5 thousand instead of 3 thousand dollars, up to 10 thousand dollars, represent a correct option to achieve stability in the exchange market," Saleh told the Iraqi News Agency (INA).
 
He added, "The followed procedures provide the cash dollar through available, fair and equal opportunities for the beneficiaries, and make it available directly to the groups that need it for the purposes of travel and treatment outside the country."
 
Salih pointed out that "This trend in the exchange market is a positive expansion in transforming the dollar cash market into a flexible market that enjoys a high degree of competitiveness, governance, and discipline at the same time," noting that "the monetary policy of CBI is a constant and continuous policy in providing other additional options for foreign currency supply, which will contribute continuously to the stability of the exchange market.
 
He also affirmed that "This move ensures at the same time maintaining the stability of the general level of prices, which is the ultimate goal of monetary policy in the country."   LINK

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Henig:  Basra crude records weekly gains of about 3%

Baghdad / NINA /- Basra crude closed with a weekly gain of about 3%, similar to other crude oil, which also recorded gains.

Basra Heavy crude closed in its last session on Friday, down by 45 cents, to reach $71.79, but it recorded a weekly gain of $2.03, equivalent to 2.91%.

While Brent crude closed in the last session on Friday, up by $2.94, to reach $83.92, and recorded significant gains amounting to $4.88, equivalent to 6.17%.

West Texas Intermediate (WTI) crude closed in its last session up by $2.07, to reach $79.65 a barrel, and recorded a weekly gain of $5.36, equivalent to 7.21%.

Oil prices rose yesterday, Friday, with the recovery of demand in China and with Russia's threats to reduce its production by 700 thousand barrels, after setting its oil prices by the European Union and America.  LINK

Vietnam

Henig:  Rural products fall short of potential

10:00 | 24/12/2022

(VEN) - Outstanding rural industrial products have been honored for 10 years throughout Vietnam, boosting rural industrial development. However, several problems need to be addressed to improve the products’ promotion.

Vu Hy Thieu, an experienced member of the national council for honoring outstanding rural industrial products, assessed that poor design remains a major weakness of outstanding rural industrial products, especially fine art and handicraft articles, as most rural producers do not have professional designers and rely on their skilled artisans and workers. They need to study market needs and design trends in order to build product development orientations, as well as renovate technology and equipment in order to better and expand production.

Sharing Thieu’s assessment, many other members of the council said some of the rural industrial manufacturers applying to have their products recognized and certified do not meet the criteria on production scale, capital investment and market.

Many applications are for poor quality products, mostly focused on processed farm produce, forest products and seafood. The participation of equipment, machinery, mechanical tools and spare parts, and fine art and handicraft articles, remains incommensurate with their potential.

The problems negatively impact the recognition of outstanding rural industrial products.

Experts say manufacturers of national and regional-level outstanding rural industrial products must be supported in developing production and strengthening trade promotion, and policies are required for development of industry and trade promotion, rural industry and small and medium-sized enterprises.

Bui Viet   LINK

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Henig:  PV Power cements position as second-largest electricity producer

December, 24/2022

Speaking at the ceremony, Minister of Industry and Trade Nguyễn Hồng Diên said PV Power had risen steadily to become the second-largest power supplier in Việt Nam, after Việt Nam Electricity (EVN) and the biggest gas-electricity producer, confirming its important position in Việt Nam’s energy map.

HÀ NỘI — The Petrovietnam Power Corporation (PV Power) yesterday celebrated 15 years since its establishment, confirming its position as a leading electricity producer in Việt Nam.

Speaking at the ceremony, Minister of Industry and Trade Nguyễn Hồng Diên said PV Power had risen steadily to become the second-largest power supplier in Việt Nam, after Việt Nam Electricity (EVN) and the biggest gas-electricity producer, confirming its important position in Việt Nam’s energy map.

The company has produced more than 240 billion kWh of electricity in the past 15 years, contributing to ensuring national energy security and the country’s economic development, Diên said.

The firm earned more than VNĐ350 trillion (US$14.8 billion) in revenue, with profits of over VNĐ25 trillion during the period. In addition, it has paid more than VNĐ16 trillion to the State budget.

The firm has operated seven power plants with a total capacity of 4,209 MW. Its total assets increased 12-fold to VNĐ56.5 trillion ($2.36 billion) from only VNĐ4.78 trillion in 2007 when it was established, with the owner’s equity exceeding VNĐ32 trillion.

Minister Diên said the power industry is facing significant challenges in the new era when it must both ensure energy supply for the fast-growing economy and transform to more eco-friendly products to help realise Việt Nam’s COP26 commitments.

He asked PV Power to take advantage of gas-fuelled power to continue the development of LNG power projects, including Nhơn Trạch 3 and 4, which have combined designed capacity of 1,600MW using the state-of-the-art technologies, along with Quảng Ninh LNG with an expected capacity of 1,500MW. Besides, PV Power needs to apply advanced technology to switch to less-carbon energy production while expanding investment in renewable energy projects.

PV Power’s General Director Lê Như Linh confirmed the firm would focus on transitioning to green energy and environmental protection.

By 2035, the firm’s total capacity is expected to reach 5,760-9,560MW, supplying 30-47 billion kWh to the market each year, with a growth rate of 3-4 per cent annually.

The first unit to make IPO

PV Power was also the first unit in the electricity sector to conduct an IPO in Việt Nam successfully.

The stock code POW has continuously led in liquidity among power trading companies on the Hồ Chí Minh Stock Exchange. The share has been in the Top 50 Best Listed Companies for three consecutive years by Forbes magazine, and the credit rating ranked BB with a positive outlook by Fitch Ratings for the past two years.

At the ceremony, PV Power received the Second-class Labour Order from Vice President of Việt Nam Võ Thị Ánh Xuân for its contribution to the country’s economic development. — VNS   LINK