Thursday, March 5, 2020

WOTS THUR MAR 5 2020

TNT Wednesday Evening Update
Iraqi TV and news stations reported that the budget needs to be recalculated due to the large deficit.
Baghdad news is suggesting that Iraq will receiving sanctions from the international world for its' actions against the protestors and its' failure to protect US interests and citizens.
US officials have announced that an employee at the US Embassy in Iraq is being charged with collaborating with Hezbollah and sharing secret information. #wearethepeople





Markets:

All the Asian Market closed up 

Our markets were set to start down in a big way about 2% across the board

OPEC meeting to deal with the falling oil price, they are considering cutting production by about 1.5 million barrels per day

Precious Metals:

Gold  up to    Silver   Copper up at  258  Platinum at 864


Favorite Currencies Forex Quotes

SymbolBidAskHighLowOpenChangeTime
 USD/IQD  1166.3000  1219.9000 1192.0000 1191.4000 1191.8000  -0.7000 08:18
 USD/VND  22841.6400  23556.5900 23218.9600 23173.5800 23218.9600  -49.6300 06:12
 USD/CNY  6.9354  6.9374 6.9655 6.9330 6.9655  -0.0301 08:48
 USD/KWD  0.3053  0.3063 0.3058 0.3053 0.3058  -0.0002 08:19
 GBP/USD  1.2916  1.2918 1.2936 1.2860 1.2871  0.0047 08:50
 USD/IRR  0.0000  0.0000 42097.5000 42097.5000 42097.5000  97.5000 00:00
 USD/IDR  14223.0000  14229.0000 14272.0000 14114.0000 14155.0000  72.0000 08:49




Things in the News...  

Banks ready disaster plans...
Fed Alters Capital Rules...



Iraqi Articles: 

Our economy, the government of voluntary absence and the independence of the central bank
The central banks in the world are independent financial and sovereign institutions in the implementation of their tasks and monetary policies and outline their strategy to achieve their goals in supporting the national economy and promoting economic stability in a way that achieves the welfare of society.
After 2003, the Central Bank of Iraq, in accordance with its Law 56 of 2004, followed in the footsteps of international banks, especially after the country passed the economic and financial crisis and security turmoil in 2014 for known reasons.
His role was clear in supporting the national economy and achieving economic resilience and on the occasion of the statement of the Prime Minister of the resigned government to the President of the Republic and the House of Representatives and his declaration that he is going to voluntary absence and will not exercise his constitutional and legal powers due to the political reality that the country is going through now and the attractiveness of choosing a prime minister New to the new interim government after the Prime Minister-designate apologized.
Going to voluntary absence and not forming a new government means that the 2020 budget will delay its approval and that its economic effects will harm the national economy and consequently will harm citizens and construction and investment will stop and it is expected that the planned deficit will rise to the limits of more than 50 trillion dinars with expectations of a decline in global oil prices to less than 50 dollars a barrel until the third quarter of this year due to the consequences of the Corona virus and slow growth in the global economy and this is certainly in the case of continued economic conditions in Iraq will lead to economic stagnation and then recession after several months and then we will return to square one It is the suffering that Iraq experienced in 2015.
And considering the essential role played by the central bank at the time when it addressed the economic and security shocks and supported the national economy and helped it withstand good governance and sound policies and applications of monetary policy with daily procedures and mechanisms.
As the Central Bank of Iraq administration, its work team, and its cadres proved that they had a prominent role in promoting economic resilience and taking a steady step towards economic stability through wise and rational efforts and measures in the applications of monetary policy and development policies of the Central Bank in the difficult economic phase of Iraq, they were able to draw a clear roadmap for the goals And aspirations to achieve economic stability and stimulate economic growth through important achievements they achieved during the past five years, the most important of which is to maintain inflation by no more than 2% and a good level of adequacy of foreign reserves within Acceptable rates according to international standards, maintaining the stability of the exchange rate, stimulating the banking sector in an organizational, supervisory, and supervisory manner, facing the current political crisis and the conditions of the popular movement, and ensuring that the Iraqi banking sector is solid and able to withstand shocks compared to neighboring countries that have gone through the same conditions.
The available data confirm that the critical situation of the Iraqi economy needs the intervention of the central bank to face the new conditions and this requires the new government to believe in the independence of the central bank and not to interfere in the appointment of its leadership and technical and professional cadres during its interim period and until early elections and the coming of a new parliament and government come because the current administration It proved successful in the most difficult of circumstances and saved the national economy from collapse when the Minister of Finance announced in 2015 that the government would not be able to secure the salaries of employees and retirees. Because the focus is on the independence of the central bank and its distance from tensions and Political interests are the solution to overcoming economic crises and achieving economic stability.
* Banking expert

Kurdistan Parliament ratifies the law to combat oil smuggling

The Kurdistan Parliament approved the law to combat oil smuggling and its extracts in the Kurdistan region.

Sarko Azad, a parliamentarian for the National Union bloc in the Kurdistan Parliament, said in a press statement:: "The Kurdistan Parliament held today, Wednesday, its second regular session of its spring session for the second year of the fifth electoral cycle, in which the law to combat oil smuggling and its extracts in the Kurdistan Region was approved. "

Parliamentary Finance addresses the Cabinet about reducing the state treasury's share of the profits of oil companies

The Parliamentary Finance Committee sent a letter to the Council of Ministers on reducing the state’s treasury’s share of the oil companies ’profits.
A statement of the Media Department of the House of Representatives stated that "the financial committee headed by the chairman of the committee, Haitham al-Jabouri, and the presence of its members, hosted the advanced cadre in the Ministry of Finance, including the undersecretary and two general managers of accounting, public debt, tax, and customs to set rapid economic remedies at the legislative and executive level to stop the consequences of the decline in the financial situation Country and low world oil prices. "
The head of the committee stressed the committee’s "complete readiness within its supervisory and legislative roles and harnessing all its efforts to maximize non-oil resources as well as submitting a number of proposals to the tax and customs authorities that contribute to increasing revenues for the purpose of reducing the budget deficit and advancing the Iraqi economic reality."
The Finance Committee called for an official letter from the Ministry of Finance "to provide it with all the amounts spent outside the budget law and the violating party bears all legal consequences for that, as well as the need to invest the collection by the ministry as it is now not at the required level and because of its importance as a resource in the budget."
The Finance Committee sent a "formal letter to the Prime Minister and the Ministry of Finance to suspend the implementation of Resolution 315 to 31/12/2019. The Ministry of Finance bears all legal consequences in the event that this decision is continued."
The Finance Committee affirmed its reservations regarding the issuance of a 364 decision by the cabinet that causes tax reduction at a time when the country needs all revenue to tackle the budget deficit, as well as directing a formal letter to the cabinet on its procedures for reducing the state’s treasury’s share of oil company profits from 45% ؜ to 5% "only."

Al-Rafidayn reopens its branch in Mosul
Rafidain Bank announced, Thursday, the reopening of its branch in Mosul to provide banking services to citizens.
A statement of the bank seen by "Al-Iqtisad News" stated that "the Assyrian branch has been reopened in the Al-Muthanna district of Mosul in the presence of the representative of the northern region and the director of the Central Bank of Iraq in Mosul and employees, elders and dignitaries of the province."
He added: "The opening of the branch will contribute greatly to reviving the economic movement, reducing the burden of employees upon receiving their salaries, and will contribute to the availability of cash and promoting all other banking transactions to citizens."

The issuance of the order approving the provision of financial allocation to the suspended Baghdad train  
image.png

The Services and Reconstruction Committee in the House of Representatives revealed, on Thursday, the issuance of the approval order to provide the financial allocation for a suspended Baghdad train after completing the basic designs from the Baghdad Municipality.
"After this approval, there will be invitations for the specialized companies to compete according to the standard they have," said committee member Jassem Al-Bukhati.
Al-Bukhati indicated that "the government will adopt financing of 15 percent of the project cost of 5.2 billion dollars, while the investor's share will be 85 percent, with the revenues of this project for 15 years from the last share."
The local government in the capital, Baghdad, has reached an advanced stage in the suspended train project by completing all the practical, legal and financial steps for the project, which runs on the middle islands without any impact on the street or infrastructure.  
CBI, ISX,Dinar Guru:
 
CBI Update:
 
Click on the link above for the latest update.

The CBI for Thursday MAR 5th  rate is 1190.

The currency auction total sales amount $ 205,359,548 . 

  
ISX Update:   At my last checking 
 ended in RED
Shares Traded: 4,893,059,551
Value Traded: 27,221,736,186

Dinar Guru Chatter:
3-5-2020    Newshound Guru Adam Montana   ...PM Allawi has..."withdrawn his candidacy"... So, what's next?...  The Iraqi President can simply appoint someone (again), but it's not necessary to take drastic action. Maybe Mahdi steps back up (he was never really gone), but that doesn't make a difference either... The good news for us, and Iraq? No matter who steps into the Prime Minister role next, Allawi was able to get some wood chopped.   Iran lost a LOT of power over the last month, for one. I think that may have more to do with Allawi's current decision than anything - he seems to want them completely gone, not just 80% reduced. Most importantly, and this is the crux of the matter, Allawi wasn't elected to this position in the first place - yet, things got done. In my opinion, the raise in the value of the Dinar is going to happen regardless of who is sitting in the Prime Minister chair. All of the things that need to happen in Iraq continue to happen, and "who" is sitting "where" does not seem to matter...as long as it's not Maliki!  Someone will be in that seat, soon, and the train will continue to chug along.  We are getting close...
3-4-2020   Intel Guru Bruce   [via WiserNow]   ...could we be notified and start tomorrow [Wednesday]? The answer is an outstanding YES – possibly...we understand that the redemption centers were to receive their schedules that would take them through Saturday March 14th until midnight...In other words, us – the internet group – we would get started and continue all the way through midnight on the 14th of march...which is... a week from this Saturday...  Do we have any other indication that we’re just about there? ...We got an indication from the World Bank – yesterday – that talked about 2 days – today and tomorrow [Wednesday]...then we heard further from the World Bank that there was emphasis on tomorrow’s date (Wed 3-4-20)...It could go Thursday -  we don’t know...this is a moving target...  Really, we are down to the wire...this is not going to last much longer...Let’s just believe that no other hindrance will keep us from starting and everything is set...

3-4-2020   Newshound/Intel Guru Mnt Goat   Article:   "Urgent: The President of the Republic approves Allawi's resignation..."  Where does Iraq go from here?  Will the UN step in and take over? Probably not...I don’t think Iraq is at this point yet. They are still within their democratic government.  Can the UN legally put in place a provisional government to run Iraq in the meantime.  No, they cannot do this.  How much longer can this go on before Iraqi economy really tanks? If they do not get the budget approved they can not go ahead with any of the projects they had planned for 2020. This new year is quickly slipping by. The economy too is stagnating and inflation could set in. Will us investors have to wait yet another year to 2021 to see the RV?  This may very well be the case. It appears they just paid the Kurds their salaries. This is not in our favor and shows they already are using the 1/12 rule of the budget...

3-4-2020   Newshound Guru Jeff    I'm not saying there's zero corruption...every country is gonna have some partial corruption.  They're not gonna be 100% corrupt free...I'm looking at the former corrupt political figures who are now billionaires.  Any of the new officials that are in place they might have some corruption but it's lower-level corruption.  These guys aren't stealing gazillions of dollars becoming billionaires like the former ones...the CBI said they needed the corruption gone...since they held the election in May of '18 Maliki's gone.  Barzani senior, he's gone.  Najaf he's gone from parliament...the CBI doesn't care about small levels of corruption.  Every country is gonna have that...the reason the CBI wanted the corruption gone and what they meant by that is they wanted the very extreme corrupt individual gone that were stealing billions of dollars...

3-4-2020   Intel Guru MarkZ   [via PDK]  Anticipation is high… Redemption Centers are manned…..sitting on “wait”  [Footforward... thinks the RV will manifest by Mar. 20th…What are your thoughts?]  I think anytime from 2 seconds from now to the 14th. That is what I think...I think they expect to have our transactions done before then and the average person on the street will be able to go in after the 14th is what I was told.

3-4-2020   Intel Guru Okie_Oil_Man     P.M.S. DOESN'T MEAN WHAT YOU THINK —IT NOW MEANS—PACK MY SUITCASE -- HIGH ALERT NOW IN EFFECT— SINCE WERE PAST SUPER TUESDAY LETS NOW LOOK FORWARD TO WONDERFUL WEDNESDAY.

3-4-2020   Intel Guru Delta  ...the budget does need the rate first IMO... monetary reform is moving forward and nothing will stop it...

3-4-2020   Intel Guru Frank26  ...wait till you see the new candidate that Trump brings in.  Wait till you see the guy he wants as prime minister.  This guy is a walking bulldog.  And he's all for the United States...

3-4-2020   Newshound Guru Jeff  ...Iraq can't do a dang thing.  Iraq is frozen as far as launching their economy.  Iraq cannot launch their economy until the rate changes.  Iraq's economy is frozen.  They can't even provide for the demonstrators...they said Iraq will be launching their economy on March 30th.  Don't forget about that.  That was roughly close to a month ago.  They said there's gonna be a lot of heavy hitters - financial big players and they said Iraq will be launching their economy on March 30th...

3-4-2020   Intel Guru MarkZ   [...Will dealers shut down when its time for appointments?]   No, the dealers will stop selling at one rate and keep selling at another within a short time…maybe they will shut down for 30 minutes or so…but that is about it.

3-4-2020   Newshound Guru Kaperoni  ...If they ever get to a point to approve the 2020 budget I assure you there is no rate change. Not how monetary policy works.
Catnip's Corner: 
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ARTICLE 1 (from PM Mahdi's website)

At the time this report was submitted, there are no new articles posted on PM Mahdi's website.

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ARTICLE 2 (from Government of Iraq twitter account)

At the time this report was submitted, there are no new tweets posted on the Government of Iraq twitter account.

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ARTICLE 3

Muhammad Tawfiq Allawi returns to Beirut

4/3/2020 22:16 
Baghdad

A source close to the return of the Prime Minister-designate who had apologized for completing his mission, Muhammad Tawfiq Allawi, to Beirut, the capital of the State of Lebanon.

Where the image of Allawi spread on social media while he was returning to Beirut after a period spent in Iraq, where he was unable to complete the mission entrusted to him by the President of the Republic Barham Salih

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ARTICLE 4

Al-Abadi launches a six-point initiative to overcome the government formation crisis

4/3/204 14:38

[Baghdad-where]

The head of the victory coalition, Haider al-Abadi, has proposed a six-point initiative to get the country out of the crisis and form an independent government with the involvement of activists and joint supervision committees.

Al-Abadi called in a statement received by [Ain], today, Wednesday, all parties with solidarity solutions out of the crisis, and the need to show wisdom and a spirit of compromise away from narrow interests and high ceilings and risk adventures.

He added that the initiative comes from national responsibility and to overcome the crisis of confidence and the emptiness of power, noting that the initiative includes assigning the President of the Republic an independent, efficient and strong personality to head the government within 15 days, and forming a mini government to manage the transitional phase, provided that it does not exceed one year from the date on which it takes responsibility.

He added that among the initiative was the holding of early and fair elections, with a UNAMI partnership, no later than 12/31/2020, controlling security, restricting weapons to the state, bringing the perpetrators against the demonstrators and security forces to justice, neutrality of the national decision, and obliging the prime minister-designate to form the government away from partisan quotas. Agitated while maintaining the representation of the national societal diversity, involving professional competencies and government activists, and appointing an advisor to the Prime Minister for mass demands, to ensure the involvement of the public in the management of the transitional phase.

He pointed to the formation of special three-party committees from the government, the UNAMI and the demonstrators, to supervise the tasks of holding elections and the investigation committees for killing protesters and security forces and restoring security in the Iraqi governorates.

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ARTICLE 5

Al-Fateh reveals a “Shi’ite agreement” to offer Allawi’s replacement, which will not be one of the previously mentioned names

4/3/2020 14:04
[Baghdad-where]

The leader of the "Al-Fateh" coalition, Naseem Abdullah, revealed an agreement between the leaders of the "Shiite" political forces regarding choosing an alternative, Mohammed Tawfiq Allawi, to assign him to form the new government.

Abdullah said, today, Wednesday, 4/4/2020, that "all the news that spoke about offering names that were previously presented are inaccurate, and there is no suggestion of such names. Rather, there is agreement for the leaders of the Shiite political forces to choose an independent figure capable of ending Quotas, to head the new government. "

And between, "The resolution of this choice will be before the end of the constitutional period, the (15) days, especially since there are serious dialogues to resolve this file, and the selection of a new independent personality, whose name has not been proposed previously."
Prime Minister-designate Muhammad Tawfiq Allawi presented his apology to President Barham Salih last Sunday for forming the new government after he spoke of political pressure that he experienced that hindered the passing of his ministerial list in Parliament.

After that, the Presidency issued a statement, following the apology of Prime Minister-designate Muhammad Tawfiq Allawi for forming the transitional government.

The presidency stated in a previous statement that "with reference to the statement of Prime Minister-designate Muhammad Tawfiq Allawi on his inability to form his government during the specified constitutional period, and based on the provisions of Article 76 of the Constitution, the President of the Republic begins consultations to select an alternative candidate within a period of 15 days within the scope of his responsibilities Constitutional and national. "

After that, Iraqi MPs and politicians talked about offering well-known names and partisan backgrounds to the Prime Minister, while MPs in response to the Shiite political forces demanded that one of its known leaders be presented to the position, in order to reach an understanding with him on the Kurdish demands.

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ARTICLE 6

Parliamentary legal affirms that the Federal Court Law will soon be proposed for reading in Parliament

4/3/2020 12:11 
[Baghdad-where]

The Parliamentary Committee confirmed on Wednesday that the federal court bill, which is considered one of the controversial laws for the first reading, will be presented, noting that the law is ready to vote after a delay due to political disputes.

Deputy Chairman of the Committee Mohamed Al-Ghazzi said in a press statement that his committee "is determined, with the start of the new legislative term, to include the law on the council's agenda, pending the completion of the remaining discussions," noting that "the Presidency of the Republic recently asked to amend the order 30".

Al-Ghazi added, “The Federal Court Bill is ready to vote after it has been standing at the political blocs table for three consecutive sessions.”

He pointed out that "the articles to be discussed within the committee are simple and can be overcome as soon as possible," noting that "the Federal Court is one of the most important laws awaiting the Iraqi state after the constitution that was approved in the year 2005."

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