Awake-In-3D: GCR Update: Iraq’s Budget – A Recipe for Disaster

Awake-In-3D

GCR Update: Iraq’s Budget – A Recipe for Disaster

On June 14, 2023 By Awake-In-3D

Is this a GCR signpost? Seriously? IRAQ IS NOT READY TO FLOAT HER CURRENCY. Hence, any rumors of such an IQD RV, without GCR gold and infrastructure, are simply wishful thinking. Our GCR is critical to Iraq’s RV.

Iraq’s Parliament recently approved a 2023 budget of 198.9 trillion Iraqi dinars ($153 billion), allocating record funds for public wage bills and development projects. However, the budget deficit is estimated at a record 64.36 trillion Iraqi dinars, and Iraq’s increasing dependence on oil revenue is a risk to its economic independence.

Here’s my analysis in detail…

IMF warns of mounting deficits and financial pressure

The International Monetary Fund (IMF) warns that the increasing public wage bill would contribute to mounting deficits and financial pressure, barring a big increase in oil prices. To break even, Iraq requires an oil price of $96 bpd, while the price averaged $71.30 bpd in May. The IMF recommends that Iraq implement a significantly tighter fiscal policy to strengthen resilience and reduce the government’s dependence on oil revenues while safeguarding critical social spending needs.

Iraq ignores recommendations to tighten fiscal policy

Despite the IMF’s recommendations, Iraq’s budget adds more than half a million new public sector workers, including contractors, daily employees, and full-time staff. This hiring flies in the face of the recommendations of many observers who say Iraq should tighten fiscal policy. Mohammed Nouri, a member of the Parliament’s finance committee, revealed that more than a million new workers were added, raising the total cost of public wages and pensions to more than $58 billion. Ahmed Tabaqchali, a visiting fellow at the London School of Economics Middle East Center, put the figure of new employees at about 600,000.

Budgets frequently delayed due to instability and political disputes

Iraq’s budgets are supposed to be adopted before the beginning of the year they cover but are frequently delayed or not passed at all due to instability and political disputes. This instability, coupled with Iraq’s increasing dependence on oil revenues, is a recipe for disaster. The country has one of the fastest-growing populations in the world, projected to double from 43 million to about 80 million by 2050. Most of the economy is state-led, with high unemployment and frequent protests over various discontent.

Iraq’s reliance on oil revenue is a risk to its economic independence

Iraq’s increasing dependence on oil revenue is a risk to its economic independence. The budget is based on an oil price of $70 per barrel and projections of oil exports at 3.5 million barrels per day, including 400,000 bpd from the semi-autonomous Kurdistan region. The budget sets the exchange rate for oil revenues in U.S. dollars at 1,300 Iraqi dinars per dollar. It will remain valid through 2025, though it is subject to amendment, including to the oil price it uses given its near-total dependence on oil revenue.

Iraq’s decision to add more public sector workers, coupled with its increasing dependence on oil revenue, is a recipe for disaster. The more the country increases its spending, the more vulnerable it becomes. The budget’s projections of oil exports at 3.5 million barrels per day, including 400,000 bpd from the semi-autonomous Kurdistan region, are not sustainable given Iraq’s near-total dependence on oil revenue.

Kurdistan issue addressed in the budget

The budget takes steps to address long-standing issues between Iraq and the semi-autonomous Kurdistan region, with its oil revenues set to be deposited in an account overseen by the Iraqi central bank.

This move comes after Kurdistan unilaterally exported crude via Türkiye despite Baghdad’s objections. However, the flows have not resumed, and the country is still dependent on oil revenue. Under an agreement signed between Baghdad and Irbil in April, Iraq’s state-run marketing company SOMO will have the authority to market and export crude oil produced from fields controlled by the Kurdish region.

How Could this affect the Iraqi Dinar Exchange Rate Without a GCR?

This hesitancy could lead to a decrease in the demand for the Iraqi dinar, which would result in its value decreasing relative to other currencies. Additionally, if the IMF’s warnings about mounting deficits and financial pressure come to fruition, this could also lead to a decrease in the value of the dinar. Therefore, it is important for Iraq to take steps to address its financial situation and reduce its dependence on oil revenues to maintain the value of its currency on the world exchange rates.

Conclusion

IRAQ IS NOT READY TO FLOAT HER CURRENCY. Hence, any rumors of such an RV without GCR gold and infrastructure are simply wishful thinking.

Iraq must take steps to address its financial situation and reduce its dependence on oil revenues. A significantly tighter fiscal policy is needed to strengthen resilience and reduce the government’s dependence on oil revenues while safeguarding critical social spending needs.

The country’s decision to add more public sector workers, coupled with its increasing dependence on oil revenue, is a recipe for disaster. The IMF has warned that Iraq’s increasing public wage bill would contribute to mounting deficits and financial pressure, barring a big increase in oil prices. Iraq’s budgets are frequently delayed or not passed at all due to instability and political disputes, and the country has one of the fastest-growing populations in the world. Iraq’s reliance on oil revenue is a risk to its economic independence, and it remains to be seen whether the country will take steps to address the situation.

The increasing dependence of Iraq’s economy on oil revenue, coupled with the country’s decision to add more public sector workers, could negatively impact the value of the Iraqi dinar on the world exchange rates. Investors may become hesitant to invest in a country with a growing budget deficit that is heavily reliant on a single commodity.

Ai3d.blog    

https://ai3d.blog/iraqs-dependence-on-oil-revenue/

MilitiaMan: "Iraq Dinar-Iraq is Going international-Timing" 6-14-2023

IRAQ DINAR - Iraq is going International - timing

MilitiaMan and Crew:  6-14-2023

The Crew:  Samson, PompeyPeter, Petra, Daytrader, Sunkissed, GIGI and Militia Man

MM:   The latest in Iraq news…….Investors around the world want Iraq to be successful…

https://www.youtube.com/watch?v=MofyGBl47co

Awake-In-3D Asian Clearing Union agrees to use Iran’s financial messaging system as SWIFT alternative

Awake-In-3D

Asian Clearing Union agrees to use Iran’s financial messaging system as SWIFT alternative

On June 14, 2023 By Awake-In-3D

The Asian Clearing Union (ACU) has announced that it will replace SWIFT, a dollar-based international system, with Iran’s financial messaging system, SEPAM, as an alternative in trade exchanges between ACU members starting next month.

The move is part of a broader de-dollarization trend that is being driven by growing rebellion against US dollar dominance and the US government’s use of economic warfare to punish countries that resist its agenda.

The adoption of Iran’s SEPAM by the ACU will be an interim measure as the ACU plans to develop its own messaging system over the next few months. The ACU comprises the central banks of India, Pakistan, Iran, Bangladesh, Myanmar, Maldives, Nepal, Sri Lanka, and Bhutan. Belarus and Mauritius applied for ACU membership at the May summit meeting.

Russia and Belarus have been excluded from SWIFT, and they have established their own alternative connection by linking Iran’s SEPAM with the Financial Messaging System of the Bank Of Russia. Russian Deputy Prime Minister Alexander Novak has said that approximately 80% of their mutual settlements are in national currencies: rials and rubles.

The trend of de-dollarization is the inevitable outcome of the US government’s use of economic warfare to punish countries that resist its agenda. The quantity of US sanctions has increased by 933% between 2000 and 2021. Countries are compelled to look for non-dollar trade alternatives to avoid being targeted over some future controversy with Washington.

ACU’s move follows a growing assortment of other de-dollarization initiatives around the world. China and France’s Total trade liquid national gas in yuan, Russia and China use the ruble or yuan for more than 70% of their trade, India and Russia trade oil in rupees, Banco BBM from Brazil has joined China’s SWIFT alternative, and 19 countries are applying to join BRICS.

As the world-changing transition towards de-dollarization continues, the global western financial system hegemony is bleeding from within. In this environment, it is no wonder that the Russia-China strategic partnership exhibits no intention of interrupting the “enemy” when he is so busy defeating themselves.

www.ai3d.blog  

https://ai3d.blog/asian-clearing-union-agrees-to-use-irans-financial-messaging-system-as-swift-alternative/

Goldilocks "The Revaluation of Everything" 6-14-2023

Goldilocks and Seeds of Wisdom

Thank you RJ

RJ:  Good evening Dinar Recaps,

Goldilocks posted some news links and comments today:

Delegation From JP Morgan Visits Iraq | MENAFN.COM
https://menafn.com/1106428917/Delegation-From-JP-Morgan-Visits-Iraq

"CFTC Extends Public Comment Period on Proposed Rule to Address the Treatment of Separate Accounts of a Single Beneficial Owner by Clearing

Members"

This proposal was closed yesterday, but the CFTC has asked for 17 more days to finalize this process. The finalization of this proposal ends on June 30th 2023. 

A "single beneficial owner" is someone who owns an asset such as currencies that has a value because of another asset supporting it and retains the right to utilize that asset as they see fit.

Everything is being backed by gold, a standardized process is going with it, and the inclusion of protocols in the banking system will clear the process. 

© Goldilocks

https://www.cftc.gov/PressRoom/PressReleases/8718-23

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"CFTC Adds 45 Unregistered Foreign Entities to its RED List"

There is a list of Forex trading companies that could leave you with very little protection if any at all. 

This list is being compiled by the CFTC, and it could be something that saves you from going through a lot of heartache.

© Goldilocks

https://www.cftc.gov/PressRoom/PressReleases/8716-23

~~~~~~~~~~

The de-dollarization of the dollar is changing the Global Financial Network System. 

With countries beginning to trade in their own National Currencies backed by gold, new trade flows are beginning to develop between countries.

New markets are beginning to form and diversify traditional trading routes creating new opportunities for growth. 

This is creating new demands on local currencies and putting pressure on new exchange rates. 

Watch the water. 

© Goldilocks

Astana Times LINK

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"IMF Wants Zimbabwe to Take Further Steps on Currency Reforms" 

Zimbabwe is in process of transitioning to a market-based price discovery monetary policy. 

Price discovery is the interaction between a buyer and seller in coming up with a common price both agree upon.

This is based upon supply and demand determining exchange rates for a particular asset.

Thousands of trades go in and out of Zimbabwe each day and Price Discovery allows them to create a financial system determined by their ability to create currency reforms that establish standardized practices. 

Watch the water. 

© Goldilocks

Bloomberg LINK

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New Development Bank To Compete with World Bank - SWFI

https://www.swfinstitute.org/news/97930/new-development-bank-to-compete-with-world-bank

☝️ Is the New Development Bank going to compete with the World Bank or phase it out as the QFS progresses?

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Federal Reserve Pause Interest Rate Hikes

Watcher Guru LINK

~~~~~~~~~~

If you remember back in March, we talked about how the stock market and gold would begin to go to it's real values by the end of June. (THE REVALUATION OF EVERYTHING))

The Pause in market interest rates will begin revealing real values to us going forward and what we need to do.

Well, this was cutting it very close, but this is the beginning of stocks going to it's real value while gold and other commodities begin to go to their real values. 

The effects of inflation has already done its damage. We have a long time ahead of us to recover, and this is where gold begins to reveal to us the power it really has. 

In a little over two weeks, we transition into a new monetary policy (SOFR) involving gold as the standard by which we measure our money transfers going forward inside a digital economy. 

At this point, we should see a rapid escalation in markets going to real values and currencies going to real values.

ON THE OTHER SIDE OF THIS TRANSITION, WE ARE GOING TO EXPERIENCE WHAT WE HAVE BEEN WAITING TO SEE BEGIN TAKING BABY STEPS INTO OUR FUTURE.

© Goldilocks

https://seekingalpha.com/article/4592624-what-happens-when-fed-stops-raising-interest-rates

☝️ Although this process will take longer than 2 weeks, we have actually begun the process of revaluing a global economy. 

This does not mean we're not going to raise interest rates later in the year because that is a possibility per Jerome Powell. 

Time will tell on this one.

~~~~~~~~~~

Goldilocks' Telegram Room

https://t.me/+YU9UrHLxFbszOTJh

Goldilocks on the Seeds of Wisdom Team Website

https://www.seedsofwisdomteam.com/

Thank you Dinar Recaps

Iraqi News Highlights Wednesday Evening 6-14-23

Iraqi News Highlights Wednesday Evening 6-14-23

Tlm724 Administrator Bondlady’s Corner

The Government's Financial Advisor Determines To / Nina / The Reasons For The Current High Exchange Rate Of The Dollar In The Local Markets And Ways To Reduce It

Wednesday 14, June 2023 10:17 | Economical Number of readings: 432  Baghdad / NINA / - The government's financial advisor, Mazhar Muhammad Salih, identified the reasons for the current high exchange rate of the dollar in the local markets and ways to reduce it.

He told the National Iraqi News Agency ( NINA ) that among the reasons for the rise in the exchange rates of the dollar in the local markets is the high spending in the Iraqi currency by citizens, merchants and the government, the increase in demand for the dollar and the establishment of new projects for the government, as well as the delay in approving the budget for six months, all of which are factors and effects. led to this rise.

He explained that the cash reserve in dollars in the Central Bank of Iraq is good, with the continued flow of oil imports in dollars to the central bank, and therefore the central bank contributes to several measures close to re-exchanging the dollar as specified in the budget, 1300 dinars against one dollar. /   https://ninanews.com/Website/News/Details?key=1059553

Minister Of Transport: The Path Of Development Constitutes A Qualitative Transition In The Economy For Iraq, The Region And The World

Money  and business   Economy News _ Baghdad   Today, Wednesday, Minister of Transport, Razzaq Muhibis Al-Saadawi, said that the path of development constitutes a qualitative transition in the economic and commercial reality of Iraq, the region and the world.

This came in a speech he delivered during a meeting of the technical committees on the development road project, which was sponsored by the Ministry of Transport.

The minister added that the path of development constitutes a vital path and enhances our economic and social relations between our peoples, adding that, with the support of the Prime Minister, we have completed the approval of the economic feasibility study prepared by the Italian consulting company.

He also said: We reaffirm that we are determined to complete this project, considering that the path of development constitutes a qualitative transition in the economic and commercial reality of Iraq, the region and the world. Views 46  06/14/2023 - https://economy-news.net/content.php?id=34746

Reuters: Two Billion Dollars In Losses For The Kurdistan Region From Stopping Oil Exports Within 80 Days

Energy     Economy News _ Baghdad   Iraq is working to start technical talks with Turkey by early next week on resuming oil exports from northern Iraq, but hopes appear low that a quick solution can be reached, sources told Reuters.

Turkey stopped Iraq's exports of 450,000 barrels per day through the oil pipeline that extends from the Kurdistan region in northern Iraq to the Turkish port of Ceyhan on March 25.

Reuters calculations indicate that the 80-day stoppage has cost the Kurdistan Regional Government more than two billion dollars.

The two sources, familiar with the discussions, said on condition of anonymity that discussions at a technical level regarding the resumption of exports between Iraq and Turkey are scheduled to take place over the weekend or early next week.

An Iraqi oil official from the state North Oil Company told Reuters that the Turkish state energy company said that the pipeline needs further technical examination before restarting and will send a technical note on the status of the pipeline in the coming days.

The source said that this does not mean the resumption of exports immediately because this decision requires high-level political talks, adding that a Turkish energy delegation is expected to arrive in Baghdad, but he has not set a date yet.

Turkey's decision to suspend exports followed an arbitration decision by the International Chamber of Commerce that ordered Turkey to pay Baghdad $1.5 billion in compensation for damages caused by the Kurdistan Regional Government's export of oil without permission from the government in Baghdad between 2014 and 2018.

Attempts to restart the pipeline were delayed by last month's Turkish presidential election and discussions between the Iraqi government's Oil Marketing Company (SOMO) and the KRG over an export deal that has now been reached.

Hopes for the resumption of work were boosted when Turkish President Alp Arslan Bayraktar appointed Minister of Energy and Natural Resources on June 3.

Sources told Reuters earlier that among the issues to be resolved was that Turkey seek to negotiate the amount of compensation ordered by the International Chamber of Commerce.

The sources said they also want to permanently resolve outstanding issues in other open arbitration cases before they agree to resume flows.

Last Monday, the Iraqi parliament approved the 2023 budget, which included some articles that negate the financial independence of the Kurdistan Regional Government.

And the Kurdistan region suffers from a lack of liquidity due to the interruption of the pipeline, and Iraqi politicians and Kurdish lawmakers said that the region had no other choice but to approve the budget, from which it would receive 12.67 percent of the total 198.9 trillion dinars ($ 153 billion).

The loss in KRG revenue due to the 80-day oil shutdown is more than $2 billion, according to Reuters calculations based on exports of 375,000 barrels per day, plus the KRG's historical discount to the price of Brent crude.

The pipeline was also exporting about 75,000 barrels per day of federal crude.

140 views   06/14/2023 - https://economy-news.net/content.php?id=34741

High Oil Contracts In The Global Market

Economy | 07:58 - 06/14/2023   Baghdad - Mawazine News   Oil prices rose slightly on Wednesday, after China, the world's second-largest economy, cut short-term interest rates and is also considering a broad package of stimulus measures.

Brent crude futures rose 8 cents to $74.37 a barrel by 04:19 GMT. US West Texas Intermediate crude was at $69.43 a barrel, up 1 cent.

US inflation slowed in May, supporting the idea that the Federal Reserve will stop raising interest rates.

Both benchmarks rose more than 3% on Tuesday on hopes of boosting fuel demand after China's central bank cut its short-term lending rate. Prices fell 4% on Monday on concerns about the Chinese economy after disappointing economic data last week.

https://www.mawazin.net/Details.aspx?jimare=229192

To read more current and reliable Iraqi news please visit BondLady’s Corner:

https://www.bondladyscorner.com/

KTFA Members "News and Views" Wednesday 6-14-2023

KTFA:

Clare:  Today.. the launch of the activities of the International Economic Forum in St. Petersburg

6/14/2023

Today, Wednesday, the activities of the International Economic Forum in St. Petersburg will start, which will continue until June 17.

The St. Petersburg International Economic Forum (SPIEF) is a unique event in the world of economics and business, as it has become a global platform for communication between representatives of the business community and discussion of major economic issues.

It is remarkable in the global economic event, this year, the participation of the United Arab Emirates as a guest of honor.

 This year, the forum will bring together representatives from more than 100 countries, including the Commonwealth of Independent States, China, India and Vietnam.

The forum, which has been held since 1997, will discuss various topics, such as politics, economics, management, technology, development, digitization and the environment.

In 2022, the St. Petersburg International Economic Forum witnessed the conclusion of deals and contracts worth about 5.6 trillion rubles ($105 billion), as 695 agreements were signed. LINK

Turk182:  ‘Iraq 2023, Open to the World’, IBBC Mansion House Conference, June 16th, 2023

One would be embarrassed to "Open to the World" within the next 24-Hours, with an absolutely worthless currency.

Not sure how they sent the Budget over to the President for Signatures?  Must have used the "Camel-Express"

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

Clare:  Tomorrow... the Emir of Qatar arrives in Baghdad for an "important" visit

6/14/2023

The Iraqi government announced that the Emir of Qatar will arrive in Baghdad tomorrow, Thursday, on a visit it described as "important".

Government spokesman Basem Al-Awadi said, in a statement reported by the official Iraqi news agency, the Emir of Qatar, Tamim bin Hamad Al Thani, will arrive in Baghdad tomorrow, Thursday.

Al-Awadi added that the visit of the Emir of Qatar has important political and economic dimensions, without giving further details.

Last May, an informed source in the Iraqi government revealed to Shafaq News agency that the Emir of Qatar, Sheikh Tamim bin Hamad Al Thani, will pay an official visit to Iraq in June.

The source added that Al-Thani will meet with the three Iraqi presidencies, in addition to a number of Iraqi political leaders, indicating that he will discuss in Baghdad the file of the commercial and investment sector, security cooperation and other files.   LINK

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GameofPatience:  Question for Frank or admins, I’m an attorney and Iraq’s laws require them to amend laws to make changes to them (budget is a law).

Question: even though the budget states the currency value can be changed at anytime, it’s a law and requires amending to make changes. Because it was already approved 1,300 dinar per dollar, it’s not able to be changed without amending it.

What steps will they use to change the rate?    Thanks  

Paulette:  IMO.........The Budget is NOT law yet.........Usually at least 7-10 days to be approved and signed by the President and then 3 days Gazette posting

Clare:  THE BUDGET MAY HAVE ALREADY BEEN SIGNED imo

Paulette:  Perhaps.........  however, IMO.....Latif has been in Italy and the budget was first "sent" from Parliament yesterday.  In the past, this has not meant that the President "received" it.  I do not recall ever seeing the budget law signed by a President in less than 7 days.  As Latif is a Kurd, his signature will be symbolic of a final "approval" by the Kurds .....

Turk182:  I don't believe that Iraq has the "Luxury" of "slow walking" this thing any further.  The Time is NOW, Action is needed NOW.

StephenMac68:  I know this was addressed to Frank or Admins, but id like to throw in my two cents.

     This brings up various possibilities in the "interpretation" of the Budget Draft Law. The figure of 1300 (internal rate) was agreed upon as a starting point to continue with the budget, a common ground. From there, using those numbers, they could assign various allotments to different ministries, organizations, etc.

     The 1300 figure will not remain at 1300 because the value will change due to the actions of the internal and international markets. Parliament has no control over that. Hopefully, and eventually, that 1300 will get smaller (because the iqd is becoming more valuable), and when it does, the effect will be shared by all parties involved with the iqd equally.

     I think if anyone is responsible for either the success or failure of the IQD, it would be the CBI. And since the Parliament has no authority over the CBI, the ball is always in CBI's hands. Of course, they have assistance via the IMF and possibly input from the AMF, but ultimately, its CBI's baby.

     We were told, "Rate First, then Budget." It happened: Iraq got the rate of 1300, and then the budget was passed.

     Thank you for the fascinating question,

Clare:  Legal: The implementation of the oil agreement between the center and the region will take place immediately after the budget is approved

6/13/2023

Information / Baghdad..

Legal expert Ali Al-Tamimi confirmed, on Tuesday, that the oil agreement between Baghdad and the Kurdistan region will be implemented within the budget items as soon as the law is published in the Official Gazette, stressing that the Democratic Party will not challenge the amended budget paragraphs.

 Al-Tamimi said in a statement to Al-Maalouma, that "the implementation of the laws takes place after their approval and from the date of approval after their publication in the Official Gazette, and they do not have a retroactive effect unless they are proven by a legal clause."

He added, "The paragraphs that regulate the relationship between the center and the region, with regard to the oil agreement, will be implemented after the ratification of the law and from the date of its publication in the Official Gazette, and they do not have any retroactive effect."

Al-Tamimi indicated that "all the paragraphs contained in Articles (13, 14 and 15) of the Federal Budget Law are identical to the decision of the Federal Court," stressing that "the Democratic Party will not submit an appeal to those articles with the Federal Court."   LINK

Turk182:  The Gazette is only published on Wednesday's & Saturday's.  Looks like they missed today's chance (Wednesday's edition), so now this is kicked to "maybe" Saturday's edition.  Obviously AFTER Iraq Welcomes the World on Friday.   

What an Embarrassment.    It's like inviting the Homecoming Queen to the Prom, then picking her up in a rusted Yugo, wearing a Wife-Beater Tied-Dye Tee shirt, and ripped jeans shorts.

Not sure what else there is left to say?

Budget was Voted On and Approved, sent to President of Signature

Just waiting on Signature & Posting in Gazette to make it "Official"

Then The implementation of the oil agreement between the center and the region will take place immediately after the budget is approved.

Once that happens, WHAMO - NEW RATE - not days, weeks, or months after... Immediately!  or none of this "Budget" stuff works.  IMO

Ryan1216:  I fully agree with you. After the budget is signed and posted in the Gazette there is nothing left. All IMO

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Clare:  Reuters: Two billion dollars in losses for the Kurdistan region from stopping oil exports within 80 days

6/14/2023

Baghdad

Iraq is working to start technical talks with Turkey by early next week on resuming oil exports from northern Iraq, but hopes appear low that a quick solution can be reached, sources told Reuters.

Turkey stopped Iraq's exports of 450,000 barrels per day through the oil pipeline that extends from the Kurdistan region in northern Iraq to the Turkish port of Ceyhan on March 25.

Reuters calculations indicate that the 80-day stoppage has cost the Kurdistan Regional Government more than two billion dollars.
The two sources, familiar with the discussions, said on condition of anonymity that discussions at a technical level regarding the resumption of exports between Iraq and Turkey are scheduled to take place over the weekend or early next week.

An Iraqi oil official from the state North Oil Company told Reuters that the Turkish state energy company said that the pipeline needs further technical examination before restarting and will send a technical note on the status of the pipeline in the coming days.

The source said that this does not mean the resumption of exports immediately because this decision requires high-level political talks, adding that a Turkish energy delegation is expected to arrive in Baghdad, but he has not set a date yet.

Turkey's decision to suspend exports followed an arbitration decision by the International Chamber of Commerce that ordered Turkey to pay Baghdad $1.5 billion in compensation for damages caused by the Kurdistan Regional Government's export of oil without permission from the government in Baghdad between 2014 and 2018.

Attempts to restart the pipeline were delayed by last month's Turkish presidential election and discussions between the Iraqi government's Oil Marketing Company (SOMO) and the KRG over an export deal that has now been reached.

Hopes for the resumption of work were boosted when Turkish President Alp Arslan Bayraktar appointed Minister of Energy and Natural Resources on June 3.

Sources told Reuters earlier that among the issues to be resolved was that Turkey seek to negotiate the amount of compensation ordered by the International Chamber of Commerce.

The sources said they also want to permanently resolve outstanding issues in other open arbitration cases before they agree to resume flows.

Last Monday, the Iraqi parliament approved the 2023 budget, which included some articles that negate the financial independence of the Kurdistan Regional Government.

And the Kurdistan region suffers from a lack of liquidity due to the interruption of the pipeline, and Iraqi politicians and Kurdish lawmakers said that the region had no other choice but to approve the budget, from which it would receive 12.67 percent of the total 198.9 trillion dinars ($ 153 billion).

The loss in KRG revenue due to the 80-day oil shutdown is more than $2 billion, according to Reuters calculations based on exports of 375,000 barrels per day, plus the KRG's historical discount to the price of Brent crude.

The pipeline was also exporting about 75,000 barrels per day of federal crude.  LINK

Iraqi News Highlights Wednesday Afternoon 6-14-23

Iraqi News Highlights Wednesday Afternoon 6-14-23

Tlm724 Administrator Bondlady’s Corner

Al-Sudani: We Are Keen On The Presence Of American Companies In Iraq

Political  | 04:52 - 06/14/2023  Baghdad - Mawazine News,  Prime Minister Muhammad Shia Al-Sudani affirmed today, Wednesday, that Iraq is keen on the presence of American companies in the country, pointing to Iraq's enjoyment of security, political and social stability, to be an attractive environment for investment and foreign companies.

The media office of the Prime Minister said in a statement, a copy of which Mawazine News received, that "Al-Sudani received, today, Wednesday, a delegation of the Iraqi-American Business Council headed by the President of the Council, Vice President of the American Chamber of Commerce for Middle East Affairs, Steve Lotus."

Al-Sudani stressed during the meeting, "Iraq is qualified to be an attractive environment for the private sector and foreign companies, stressing that the government has taken a series of decisions to simplify procedures for investors, and work to address problems in this field."

He added, "Iraq enjoys security, political and social stability, and is qualified today more than ever to be an attractive environment for investment and foreign companies."

He explained that "Iraq has a real chance for success, and there is no alternative to peaceful coexistence and support for the state and its institutions," stressing that "the Iraqi experience does not exist in the region at the level of local and parliamentary electoral representation, which indicates the vitality of the democratic system."

Al-Sudani noted that "the government is aware of the size of the heavy legacy that began since the 1980s war and caused negative effects in most sectors, so it has set five priorities in its program that it is working to achieve."

He stressed that "Iraq cannot remain dependent on oil, as the world is turning today to oil alternatives that will be ready after 2028," noting that "

He continued, "Iraq possesses natural resources that have not been invested, and it is qualified to be an agricultural and industrial country due to its strategic location."

"The private sector is our real partner to achieve our vision, reduce time and find solutions to problems," he added.

"We started investing in the burnt gas sector, which costs us $4 billion annually," al-Sudani said, noting that "the Total agreement is one of the most important gas investment agreements and the development of oil fields, which will provide half of our gas needs."

During his speech, Al-Sudani revealed "contracts with Chinese and Emirati companies that will provide us with half of the gas we import."

And he continued, "We are preparing to announce the sixth round of gas fields, which is happening for the first time in Iraq, in terms of natural gas investment," noting that "

Al-Sudani stressed that "Iraq is keen on the presence of American companies in the country."

Al-Sudani continued his speech during the meeting, that "the Ministerial Council for the Economy includes representatives from the private sector who participate in the government in formulating decisions and procedures that would facilitate the work of investors in Iraq." Ended 29 / m99

https://www.mawazin.net/Details.aspx?jimare=229240

The Central Bank Reveals The Volume Of Foreign Currency Sales For Today

Economy | 12:50 - 06/14/2023  Baghdad - Mawazine News   Ann News – Baghdad  The Central Bank of Iraq revealed, today, Wednesday, the volume of its sales of foreign currency for this day.

According to the schedule of the currency sale window that Mawazine News followed, the Central Bank sold during its auction today 207,217,854 dollars, which the bank covered at an exchange rate of 1305 dinars, per dollar for documentary credits and international settlements of electronic cards, and at a price of 1310 dinars per dollar for external transfers, and at a price of 1310 dinars per dollar, respectively. monetary.

Most of the dollar sales went to enhance balances abroad in the form of (remittances, credits), amounting to $163,787,854 million, while the remaining $43,430,000 million went in the form of cash sales.   https://www.mawazin.net/Details.aspx?jimare=229216

The Dollar Is Rising Again Against The Dinar In Today's Dealings

Baghdad - Mawazine News   Today, Wednesday, the exchange rates of the dollar recorded an increase in the stock exchange and local markets in the capital, Baghdad.

A Mawazine News correspondent said, "The buying and selling prices of the dollar witnessed a slight increase in exchange shops in the local markets, as the selling price reached 147,500 dinars per 100 dollars, while the buying prices reached 145,500 dinars per 100 dollars, in the capital, Baghdad."

https://www.mawazin.net/Details.aspx?jimare=229213

Iraq Receives "Requests" From European And African Countries To Participate In The Path Of Development

Reconstruction and building  Economy News – Baghdad  Adviser to the Prime Minister for Transportation Affairs Nasser al-Asadi confirmed, on Wednesday, that Iraq had received requests from countries in the continents of Asia, Europe and Africa to participate in the development road project.

Al-Asadi said, "The meeting of the technical committees that was held today with the participation of 10 countries is the first step to determine how the project will proceed, and there will be bilateral discussions between delegations and the competent authorities in Iraq to determine priorities for work."

He added, "Participation priorities will also be determined as the basic basis for launching the project, and many details will be studied, including determining the percentage of participation of each country in the path of development."

He continued, "The delegations of the countries that attended today confirmed the desire of their governments to participate, including China, and we received requests from Gulf, Asian, European and African countries on the basis of what was presented at the Development Road Conference held on May 27," according to the official agency. Views 19  06/14/2023  https://economy-news.net/content.php?id=34751

To read more current and reliable Iraqi news please visit BondLady’s Corner:

https://www.bondladyscorner.com/

Awake-In-3D :Understanding SOFR: The New Benchmark for Global Credit Markets

Understanding SOFR: The New Benchmark for Global Credit Markets

On June 13, 2023 By  Awake-In-3D

Is the transition to the SOFR interest rate benchmark going to push the proverbial button on the RV/GCR? It seems that nearly every event in the financial economy these days is labeled as a “the trigger” for Our GCR. This is simply not the case. My regular readers know my position on Our GCR release being the collapse of the current Fiat Currency System. Consequently, I view volatile economic and financial events as falling dominoes in the inevitable fiat debt system implosion. As the financial industry rushes to meet the June 30th (2023) transition deadline from LIBOR to SOFR-based interest rates, it may further increase default risks for banks but it is not a GCR trigger event.

So let’s become factually familiar with SOFR and what may lie ahead for the current financial system landscape.

Introduction

The global credit markets are undergoing a major shift as the industry moves away from the London Interbank Offered Rate (LIBOR), the benchmark for interest rates for decades. The replacement for LIBOR is the Secured Overnight Financing Rate (SOFR), a benchmark that was introduced by the Federal Reserve Bank of New York in 2018.

What is SOFR?

SOFR is an interest rate benchmark that is calculated based on transactions in the U.S. Treasury repurchase market. The rate is derived from the cost of borrowing cash overnight, collateralized by U.S. Treasury securities. It is a risk-free rate that reflects the cost of overnight borrowing in the U.S. Treasury market. SOFR is calculated and published daily by the Federal Reserve Bank of New York, and it is intended to replace LIBOR as the primary benchmark for short-term interest rates.

Why is SOFR Important?

LIBOR has been the primary benchmark for interest rates for decades, but the rate has been plagued with issues. The benchmark has been subject to manipulation, and the market that underpins it has dwindled, making it increasingly difficult to calculate. In addition, the Financial Stability Oversight Council (FSOC) in the United States has raised concerns about the potential systemic risk posed by LIBOR’s discontinuation. These concerns prompted the industry to explore alternative benchmarks, and SOFR emerged as the leading candidate.

SOFR is a more reliable and transparent benchmark than LIBOR. It is based on actual transactions in the U.S. Treasury repo market, which is a much larger and more liquid market than the interbank market that underpins LIBOR. SOFR is also less susceptible to manipulation since it is based on observable market prices rather than estimates submitted by banks. As a result, SOFR is expected to be a more accurate reflection of the underlying cost of borrowing.

The Impact of SOFR on the Global Credit Markets

The transition from LIBOR to SOFR is expected to have a significant impact on the global credit markets. The shift will affect a wide range of financial products, including bonds, loans, and derivatives. The transition is expected to be particularly challenging for legacy contracts that reference LIBOR and do not have fallback provisions. These contracts will need to be amended to include fallback language that specifies an alternative benchmark if LIBOR is discontinued.

The shift to SOFR is also expected to require changes to the infrastructure that supports the credit markets. Market participants will need to modify their systems and processes to accommodate SOFR, and new products and services will need to be developed to support the new benchmark. The industry is already working on developing new products and services that are based on SOFR, including SOFR-based futures and options and SOFR-linked bonds.

The Impact of SOFR on Borrowers and Lenders

The shift to SOFR is expected to have an impact on both borrowers and lenders. Borrowers may see changes in the pricing of their loans, as SOFR is generally expected to be lower than LIBOR. This could result in lower borrowing costs for some borrowers, particularly those with floating rate debt. However, borrowers may also face increased costs associated with amending legacy contracts to include fallback provisions.

Lenders, on the other hand, may see changes in their funding costs. Since SOFR is a risk-free rate, lenders may need to adjust their pricing to reflect the lower risk associated with SOFR-based loans. Lenders may also face increased costs associated with modifying their systems and processes to accommodate SOFR.

The Transition to SOFR

The transition from LIBOR to SOFR is a complicated process that requires significant coordination among market participants. The Alternative Reference Rates Committee (ARRC) in the United States has been leading the effort to transition to SOFR, and it has developed a set of recommended best practices for market participants to follow.

One of the key challenges of the transition is the need to amend legacy contracts that reference LIBOR. The ARRC has recommended that market participants include fallback language in these contracts that specifies an alternative benchmark when LIBOR is discontinued.

Another challenge of the transition is the need to modify the infrastructure that supports the credit markets. Market participants will need to modify their systems and processes to accommodate SOFR, and new products and services will need to be developed to support the new benchmark.

SOFR May Place Increased Stress on Already Stressed Banks

The switch from LIBOR to SOFR as the new benchmark rate has raised concerns about the potential negative impact on bank balance sheets during times of financial stress. The effective demise of the tainted London Interbank Offered Rate (LIBOR) this month and the switch to the risk-free Secured Overnight Funding Rate (SOFR) has renewed concerns about the impact of the new measure on banks.

The transition to SOFR has been well-telegraphed for years and US banks are mostly prepared for the new rate regime. However, LIBOR’s permanent shutdown on June 30 comes on the heels of a destabilizing outflow of deposits at the nation’s mid-tier banks.

While US banks are mostly prepared for the new rate regime, the effective demise of LIBOR and recent outflow of deposits at mid-tier banks has heightened concerns about the transition. One main concern is that SOFR has no credit component and tends to fall during financial crises, which could hurt banks’ balance sheets and constrain lending to the broader economy.

This was highlighted by the New York Fed in a study released in December 2022. “Banks are going to be more exposed with SOFR lines of revolving credit because borrowers, in a crisis, will be able to borrow at a very low rate (when SOFR rates goes down),” said Darrell Duffie, professor of finance at the Stanford Graduate School of Business and a co-author of the New York Fed study. “When corporations borrow under revolving lines of credit at a low rate during a crisis, the banks will have to fund those borrowings at a time when bank funding costs are going way up,” he added.

In 2019, several regional banks sent a letter to US regulators, warning that the transition to SOFR could adversely affect loan extension. The assumption was that if SOFR falls, commercial borrowers would tend to hoard liquidity by drawing on their lines of credit. Revolving lines of credit make up the largest share of bank lending to corporations at 59%, Duffie said.

The New York Fed study concluded that the transition to SOFR may have implications for bank funding costs and balance sheets, especially in times of stress. “While SOFR is a more robust and transparent rate than LIBOR, it may be more sensitive to changes in market conditions,” the report said.

Despite these concerns, some analysts argue that the benefits of switching to SOFR outweigh the risks. SOFR is considered a more reliable benchmark rate than LIBOR, which was tainted by manipulation scandals. The switch to SOFR is also expected to reduce systemic risk in the financial system.

Conclusion

The transition from LIBOR to SOFR has raised concerns about the potential negative impact on bank balance sheets during times of financial stress. While SOFR is a more reliable benchmark rate than LIBOR, it has no credit component and tends to fall during financial crises, which could hurt banks’ balance sheets and constrain lending to the broader economy. However, regulators have been working closely with banks to ensure a smooth transition, and many banks have already started using SOFR in transactions. The benefits of switching to SOFR are, according to the “experts”, expected to outweigh the risks, and the switch is also expected to reduce systemic risk in the financial system … Maybe

https://ai3d.blog/understanding-sofr-the-new-benchmark-for-global-credit-markets/

"Tidbits From TNT" Wednesday Morning 6-14-2023

TNT:

Tishwash:  Demonstration in front of the Central Bank of Iraq in central Baghdad

 Dozens demonstrated, on Wednesday, in front of the Central Bank of Iraq in the center of the capital, Baghdad, to demand the release of stalled housing loans and financial allocations for housing.

One of the demonstrators told Shafaq News agency, "Today we are demonstrating in front of the Central Bank on Al-Rasheed Street, calling on the government and the Central Bank to release financial allocations to the Real Estate Bank after it stopped lending to citizens for the purpose of building and buying housing units," calling for the need to "reactivate and launch loans for this bank and other banks according to Soft instructions.

He added, "Many government banks shirk their responsibilities in launching instructions for housing loans and construction and renovation loans," calling on "the Central Bank to launch its initiative, which includes one trillion to support housing loans on the ground."

A number of government banks, especially Al-Rafidian and Al-Rasheed Banks, are competing to grant various and many loans according to mechanisms and instructions that may sometimes be strict, while some citizens suffer from difficulty in obtaining these loans compared to countries in the world, which are often directed towards optimal investment for them. 

The Central Bank had allocated 6 trillion since 2015 to launch two initiatives for housing loans. The first initiative, five trillion, went to the sectoral banks, which are industrial, agricultural, real estate, and the housing fund, and the one trillion initiative went to private banks. link

CandyKisses:  Iraq announces full payment of Iranian debts

Baghdad - Iraq Today:

The Ministry of Electricity announced the payment of Iraq's debts to all Iran, indicating that the delay in paying these debts is caused by US sanctions on Iran.

Ministry spokesman Ahmed al-Abadi said in a statement to the media that "the ministry has paid all the dues of imported Iranian gas in a special account with the Iraqi Trade Bank," noting that the latter "faces difficulties in delivering those funds to the Iranian side due to US sanctions."

He added that "the delay in the arrival of financial dues to the Iranian side prompted the latter to reduce the quantities of gas exported to Iraq, as it reached 15 million cubic meters per day, which affected the processing hours for citizens," noting that "government and diplomatic efforts contributed to the return of gas releases to normal, which contributed to the stability of processing hours."

"The ministry is working on installing complex cycles, establishing thermal plants, installing stations that run on associated gas, and initiating solar energy projects as well as electrical interconnection projects," he said.

"The Ministry of Oil is working to accelerate the pace of associated gas investment in the fields, and we, in turn, are working on strategic partnerships with international companies to install gas-fired stations in the field," al-Abadi said.

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

Harambe:  Americans Say They Need $2.2 Million to Be Considered Wealthy | Bloomberg (6/13/23)

Wealth isn’t an easily defined concept, and you can’t determine just one dollar amount that makes someone wealthy. But if you could, Americans have collectively chosen $2.2 million as that sum.

Charles Schwab asked a nationally representative sample of Americans to estimate the average net worth that would allow someone to be called “rich,” and that’s the amount they settled on, Bloomberg reported on Tuesday. That finding is just one of many in the financial-services company’s 2023 Modern Wealth Survey, which polled people on their perceptions of wealth.

“There’s this paradox of people defining wealth differently for themselves versus others,” Rob Williams, the company’s managing director of financial planning and wealth management, told Bloomberg. “When you ask someone for a dollar amount, they don’t put it in the context of the rest of their life and financial health.”

That’s evident in the fact that despite the $2.2 million wealth threshold, 48 percent of survey respondents said they already feel wealthy, with an average net worth of just $560,000. And that feeling was more abundant with Millennials and Gen Zers (57 percent and 46 percent, respectively) than with Gen Xers and Baby Boomers (41 percent and 40 percent, respectively).

Elsewhere, 47 percent of people said that being able to afford a similar lifestyle to their friends made them feel wealthy. That split along the same generational lines: 61 percent of both Gen Zers and Millennials agreed with that statement, while just 39 percent of Gen Xers and 31 percent of Boomers agreed. And more than one-third of social-media users said those comparisons happen online, as they keep an eye on what their friends and family post.

While wealth is largely associated with dollar amounts, the participants in the Charles Schwab survey also had a broader, more intangible perception of being rich. Rather than having a lot of money in your checking and savings accounts, 70 percent of people said that wealth was more about not worrying about money. And almost two-thirds said that having healthy relationships with their loved ones described wealth better than having a fat wallet.

Maybe that old saying about money not being able to buy you happiness is true after all.

https://www.bloomberg.com/news/articles/2023-06-13/how-much-money-do-you-need-to-be-rich-more-than-2-million-a-new-survey-finds

Mot:  .. Wellll it is Breakfast Time!!!

Mot:  The Sound of Silence - Pentatonix........(RV News this week???)

https://www.youtube.com/watch?v=gdVjVtpr55M

Iraqi News Highlights Tuesday Afternoon 6-13-23

Iraqi News Highlights Tuesday Afternoon 6-13-23

Tlm724 Administrator Bondlady’s Corner

Al-Sudani: The Budget Includes An Item To Support The Private Sector And Grant It Sovereign Guarantees

Money  and business   Economy News – Baghdad   Prime Minister Mohamed Shiaa Al-Sudani and his Egyptian counterpart, Mustafa Madbouly, chaired the activities of the Iraqi-Egyptian Business Forum, which kicked off in the Egyptian capital, Cairo, today, Tuesday.

Al-Sudani said, according to a statement by his office, that "the participation of the Iraqi private sector in this forum reflects the serious desire for the private sector to be a partner with the government," stressing that "the tripartite budget approved by Parliament includes an item to support the private sector and give it sovereign guarantees."

He pointed to "the government's implementation of important projects in the housing and education sectors, in addition to the establishment of the Iraq Fund for Development with a capital of one trillion dinars, from which specialized funds for housing, schools, electricity, agriculture, health and industry will branch out, and implementation will be by the private sector, which will be supported by the government, and will be available." It has the right environment for investment.

He pointed to "the government's determination to localize the pharmaceutical industries, as a list of the most important procedures and facilities that enable producers and manufacturers to enter Iraq to establish their factories, as well as projects for manufacturing and petrochemical industries," was drawn up. water.”

The Prime Minister emphasized "supporting partnerships between the Egyptian and Iraqi private sectors," pointing to "reconsidering trade exchange between the two countries."

Views 18   Added 06/13/2023 - https://economy-news.net/content.php?id=34727

Al-Halbousi To An American Delegation: The Conditions Are Ripe For Economic Work In Iraq

Money  and business   Economy News – Baghdad   Parliament Speaker Muhammad al-Halbousi affirmed today, Tuesday, that Iraq is open to foreign companies, and that conditions are now ripe for economic work in the country.

A statement from Al-Halbousi's office said that the latter received "a delegation from the American Chamber of Commerce, which included a large group of companies specialized in various fields, headed by the President of the American-Iraqi Business Council, Steve Lotus, and in the presence of the Chairman of the Investment Committee and the Vice-Chairman of the Parliamentary Economy, Industry and Trade Committee."

 The meeting discussed "strategic cooperation, strengthening bilateral relations in the economic aspect between Iraq and the United States of America, and (Al-Halbousi) listened to a review by members of the delegation of existing investment opportunities and proposed projects in the field of health, energy, banking system, infrastructure, services, and others."

Al-Halbousi stressed that "Iraq is open to foreign companies, provides the necessary facilities for investment in various fields, and works to provide the appropriate environment for international companies through the necessary legislation."

He pointed out that "the conditions are now ripe for economic work in Iraq, and there are many investment opportunities and important projects within the government's vision and its executive program, which were approved within the Federal General Budget Law."

Views 29   06/13/2023 - https://economy-news.net/content.php?id=34728

Iraq Signs A Contract With Two International Companies For The Sustainability Of Water And Land

Money  and business  Economy News _ Baghdad  Today, Tuesday, the Ministry of Water Resources announced the signing of a contract with two international companies for the sustainability of water and land in Iraq.

A statement by the ministry, received by "Al-Iqtisad News", stated that "Minister of Water Resources, Awn Dhiab Abdullah, signed a contract with a consortium of the Italian companies Hydronova and the Jordanian Concorde to update the strategic study of water and land resources in Iraq with a planning horizon that extends until 2035," indicating that "the signing of the contract has been completed." In the presence of the Director General of the Planning Department and his assistant, as well as the head and employees of the Contracts Department.

He added, "The contract includes a study of the development work taking place in the riparian countries, and the impact of climatic changes and their repercussions on securing water of good quality for southern Iraq and the marshes in particular, as well as the impact of groundwater on agriculture."

He continued, "The study is a roadmap for the sustainability of water resources in Iraq and a guide for managing this vital sector in light of the conditions of water scarcity expected in the future, in order to achieve the Ministry's goals of achieving the sustainability of water resources in Iraq."

Views 36  Added 06/13/2023 - 12:37 PM   https://economy-news.net/content.php?id=34720

A Slight Decrease In The Price Of The Dollar On The Local Stock Exchange

Tuesday 13, June 2023 11:54 | Economical Number of readings: 328  Baghdad / NINA / - The exchange rate of the dollar recorded a slight decrease in the local stock exchange.

 The purchase price amounted to 146 thousand dinars per hundred dollars, while the selling price reached 147 thousand dinars per hundred dollars./ End11

https://ninanews.com/Website/News/Details?key=1059368

Globally.. The Rise In Oil Prices In Tuesday's Trading

Economy | 08:30 - 06/13/2023  Baghdad - Mawazine News  Oil prices rose in early trading, Tuesday, as investors sought to seize the opportunity for the sharp decline witnessed yesterday, but the increase was limited amid the continued state of caution before the expected monetary policy decisions from the US Federal Reserve and other central banks.

Brent crude futures rose 0.7% to $72.36 a barrel, and US West Texas Intermediate crude rose 0.5% to $67.46 a barrel.

The two benchmarks fell by about $3 a barrel on Monday, as analysts focused on global supply growth and demand concerns ahead of key inflation data and the two-day meeting of the US central bank that ends on Wednesday.

Most observers expect the US central bank to keep interest rates unchanged at its policy meeting. The rate hikes boost the dollar's strength, making commodities denominated in it more expensive for holders of other currencies and weighing on prices.

The European Central Bank is expected to raise interest rates by another quarter of a percentage point next Thursday to curb inflation.

In China, disappointing economic data last week raised concerns about demand growth in the world's largest importer of crude, which erased the rise in prices after Saudi Arabia pledged to cut its oil production by an additional million barrels per day in July. https://www.mawazin.net/Details.aspx?jimare=229118

Currency Auction.. The Central Bank Achieves More Than 211 Million Dollars

Economy | 11:14 - 06/13/2023   Baghdad - Mawazine News  Today, Tuesday, the Central Bank of Iraq's sales of foreign currency increased, recording $ 211 million.

According to the schedule of the currency sale window that Mawazine News followed, the Central Bank sold during its auction today 211,749,456 dollars, which the bank covered at an exchange rate of 1305 dinars, per dollar for documentary credits and international settlements of electronic cards, and at a price of 1310 dinars per dollar for external transfers, and at a price of 1310 dinars per dollar, respectively. monetary.

Most of the dollar sales went to enhance balances abroad in the form of (remittances, credits), amounting to 166,249,456 million dollars, while the remaining 45,500,000 million dollars went in the form of cash sales.    https://www.mawazin.net/Details.aspx?jimare=229132

An "Unknown Future".. Parliamentary Warnings Against The Government's Continued Dependence On The Rentier Sector

Information / special.  A former member of the Finance Committee, Ahad Al-Saffar, counted today, Tuesday, the standard of living of future generations "in danger", and while he warned against the government's continued dependence on the rentier sector, he expected a decrease in the value of the dinar in the coming years.

Al-Saffar said, in an interview with Al-Maalouma Agency, that "the government program, through the draft financial budget law, for the government, seems to continue to rely on the rentier economy and the oil sector, which finances more than 93% of public revenues, i.e. an economy that relies on imports only.". 

He added, "The country's economy will be exposed to inflation and the depreciation of the local currency  (meaning that the Iraqi dinar will lose its value year after year as long as this dinar is not supported by a realistic economy)."

A member of the Finance Committee explained, "Although there is a cash reserve of more than $100 billion and a large amount of gold,

this is not sufficient and will not be a substitute for the existence of a real economy that produces goods, services and needs, and reduces unemployment rates."  And Al-Saffar indicated that

"the general vision of the Iraqi economy and its future is not joyful, and if the situation remains in this case, the government will not be able to take serious steps to actually advance the Iraqi economy and get it out of the rentier state, and the future of the economy will be unknown, and the standard of living of future generations will be in danger.".

On Monday, the House of Representatives approved the draft financial budget bill for the next three years, at an estimated amount of 197 trillion dinars (approximately $152 million), based on oil prices estimated at $70 per barrel.

And the largest budget figures in the history of Iraq pose great economic risks to Iraq,  especially with regard to revenues and dependence on the oil resource, according to economists.

https://almaalomah.me/news/economy/مستقبل-مجهول-تحذيرات-برلمانية-من-استمرار-الحكومة-بالاعتماد-ع

To read more current and reliable Iraqi news please visit BondLady’s Corner:

https://www.bondladyscorner.com/

Goldilocks "In the game of chess, this is called a checkmate!" 6-13-2023

Goldilocks and Seeds of Wisdom

Thank you RJ

Good afternoon Dinar Recaps,

Goldilocks posted a recap of the news involving Iraq over the last several days:

Let's take a closer look at what we have seen revealed to us the last few days.

JP Morgan is in logistics training with the Iraqi bank employees on the FEDNOW system.

This will help them to migrate into the QFS.

Iraq has canceled a foreign currency exchange company contract locally and accepted JP Morgan's ability to help them with this process.

JP Morgan is placing several new banks in Iraq to help them implement the new digital banking system.

Iraq has made it a mandate to place banks in all of their large cities as soon as possible.

Iraq has raised their capital in Gold to help support their banks.

Iraq has one of the largest reserves in foreign currency that they have ever had in their history to support their banks.

Question: Do you really believe they will come out with a programmed rate at the end of their logistics training and migration into the QFS?

This certainly would not support their Foreign Reserves Department or allow them to be competitive now that they have entered into the QFS.

JPMorgan does not place banks in places they do not expect to turn a profit.

In the game of chess, this is called a checkmate!

© Goldilocks

☝️Can you say reinstatement?

~~~~~~~~~~

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Thank you Dinar Recaps