Wednesday, December 23, 2020

WOTS TUE DEC 22 2020

 WOTS TUE DEC 22 2020

The exchange rates of the dollar fell in Baghdad markets, today, Tuesday.

Al-Kifah Central Stock Exchange in Baghdad registered 140,000 Iraqi dinars against 100 US dollars, which is the same price as Al-Harithiya Stock Exchange in Baghdad.

Yesterday, Monday, the Kifah Stock Exchange recorded 142500 Iraqi dinars against 100 US dollars at the opening, before witnessing volatility, as it recorded the exchange rate of 138,500 at noon, before closing at 141,000 dinars.

It is noteworthy that the buying and selling prices also decreased in the exchange shops in the local markets in Baghdad, where the selling price reached 141,000 Iraqi dinars, while the purchase prices reached 139,000 dinars per 100 US dollars.




The Markets:
The Asian markets closed down NIK down by 1.04% HSI down by .71% SHANG down by 1.86%
The UK markets are currently trading in the green from .20% to 1.12%
Our markets are currently trading mixed the DOW at 30216 up by 12.%  SNP at 3694 down by .39% NDX at 12742 down  by .10%

Precious Metals:
Gold is red at 1874  Silver is red at 26.19 Copper is red at 353 Platinum is green at 1018
Brent 50 WTi 47


Favorite Currencies Forex Quotes

SymbolBidAskHighLowOpenChangeTime
 USD/IQD  1187.0000  1193.0000 1190.9000 1190.6000 1190.9000  -0.6000 00:31
 USD/VND  23127.0000  23128.0000 23126.5200 23125.9300 23125.9300  0.8300 02:32
 USD/CNY  6.5412  6.5432 6.5525 6.5411 6.5480  -0.0074 05:23
 USD/KWD  0.3042  0.3052 0.3043 0.3041 0.3043  -0.0002 05:04
 GBP/USD  1.3422  1.3422 1.3467 1.3362 1.3462  -0.0040 05:23
 USD/IRR  42000.0000  42210.0000 42097.4000 42097.4000 42097.4000  0.0000 16:00
 USD/IDR  14218.0000  14247.0000 14305.0000 14095.0000 14121.0000  101.0000 05:21
Things in the News:


Iraqi Articles:

Oil prices continue to fall as new strain of CORONA virus is established

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Oil prices fell on Tuesday, continuing sharp losses as the rapid spread of a new strain of the new coronavirus in the UK prompted several countries to close their borders to British travellers and freight, tightening restrictions in Europe, raising fears of a slower recovery in fuel demand.

West Texas Intermediate (WTI) crude futures fell 35 cents, or 0.73 percent, to $47.62 a barrel by 0515 GMT, while Brent crude futures fell 31 cents, or 0.61 percent, to $50.59 a barrel.

Both benchmark contracts fell nearly 3% on Monday, partially wiping out recent strong gains on the back of the introduction of COVID-19 vaccines, seen as key to easing mobility restrictions.

After the UK government warned that a new type of virus appeared to be spreading much faster than previous ones, India, Pakistan, Russia, Jordan and Hong Kong joined European countries in suspending travel from Britain, and Saudi Arabia, Kuwait and Oman closed their borders altogether.

As the dollar rose as a safe haven currency, us dollar-denominated oil became less attractive to buyers carrying other currencies, adding to the pressure on oil prices.


a protest stand in front of the central bank building on rasheed street

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Our correspondent reported that a protest was organized in front of the building of the Central Bank of Iraq in the capital, Baghdad, by merchants, store owners, kasbah and industrialists.

According to our correspondent, "this pause, which will start at twelve o'clock today, Tuesday, came to demand the cancellation of the decision issued by the Central Bank of Iraq to change the exchange rate of the dollar, which caused the suspension of markets, high prices and confused the economic situation."

He added, "What is required from this pause is to hold a joint session with leaders and economic experts to study solutions and give sober ideas that achieve a financial solution.


Sources: A Cabinet Reshuffle In Al-Kazemi's Government Affects Five Ministers

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Senior political sources in Baghdad revealed to the Qatari newspaper, Al-Arabi Al-Jadeed, yesterday, Monday, that a cabinet reshuffle in Mustafa Al-Kazemi's government affects five ministers, who are facing charges of negligence and mismanagement.

 

This trend confirms that the political forces in effect in Iraq deal with the file of holding early legislative elections after about 6 months from now, is not serious, and that the delay remains the most likely until now.

An Iraqi deputy, as well as a prominent leader in the “Al-Fateh” coalition, spoke separately with “Al-Araby Al-Jadeed”, about the existence of an agreement between several political forces, to conduct a ministerial reshuffle that affects five ministers in the Al-Kazemi government, they are Finance Minister Ali Abdul-Amir Allawi, Minister Trade Alaa Al-Jubouri, Minister of Industry Manhal Aziz Al-Khabaz, Minister of Electricity Majed Hantoush, and Minister of Oil Ihsan Abdul-Jabbar.

The amendment will affect five ministers, who will face charges of negligence and mismanagement:

The deputy of the “State of Law” coalition, who requested anonymity, confirmed that “the first step will be through questioning the ministers, then voting to withdraw confidence from them,” explaining that “this approach came because of the failure of these ministers in their duties, but rather they were the cause of The exacerbation of many crises, especially at the economic and financial levels.

The Iraqi parliamentarian revealed that any minister who is dismissed will nominate a replacement for him from the same bloc that brought him, in order to avoid the outbreak of political disputes and a struggle over ministerial portfolios again. The source pointed out that this is what prompted the majority of the blocs to support this approach, which will start in the form of interrogations, and not a one-time adjustment.

As for the leader of the “Al-Fateh” coalition, the political wing of the “Popular Mobilization Forces,” who in turn refused to be named, he also confirmed this, indicating that “Minister of Electricity Majed Hantoush submitted his resignation after these developments, anticipating his interrogation steps, but Prime Minister Mustafa Al-Kazemi refused them. “. The source pointed out that “the leaders of the political forces have reached understandings with Al-Kazemi regarding this movement and the need for a cabinet reshuffle, especially since there are no guarantees until now that early elections will be held, as it is very possible for the Al-Kazemi government to remain until May 2022.” It is likely that the first steps of the gradual cabinet reshuffle will begin after the end of the New Year's holiday in Parliament, and Finance Minister Ali Allawi will be the first to be questioned, and then to be dismissed.

Economist: Traders rumour sway currency speculation

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Economist and finance economist Bassem Jamil Antoine said Tuesday that some traders at the dollar exchange rates are now using the atmosphere of the financial crisis to speculate on the claim that trillions of dinars are outside the banking framework.

"The atmosphere of the financial crisis is set for rumors and speculations by some, while this process coincided with the government's moves to control the crisis and get out of the deficit in the payment of salaries," Antoine said in an exclusive interview with The Iraqi News Agency( AWA).

"There are those who claim that trillions of dinars are outside the banking framework, which means that three quarters of the printed iraqi currency falls outside the banking system," he said.

"Through this process, there will be a disparity in the exchange rates of the dollar even in the provincial markets, and you will see a lot of weight," Antoine said, adding that "if the inequality is one-time, it is very normal, but to be 20 times, that is not normal."

"The currency is a means, not an end, and its strength is the strength of the economy, but the Iraqi economy has weakened, because it is an import economy and not a productive one," he said, stressing that "if there was domestic, industrial, agricultural production, there would be hope for a reciprocal value of the dollar." 


CBI Update:  Just  a note:
They have been having auctions and the ISX has been trading regularly; the sites just don't update in time to put the information in this report, unless it is 
here.   

Click on the link above for the latest update.

The CBI for rate is 1460.
no update for 12/22/2020

The currency auction For December 22, 2020 total sales amount $113,494,784. 

  including   $ 200,000. CASH 

ISX Update:   

www.isx-iq.net/

Shares Traded: not updated for today
Value Traded: not updated for today 

12-22-2020   Newshound Guru Kaperoni   ...The CBI is trying to maintain stability that is a given but it pertains to the market rate and there are several reasons why stability is important... As for the official CBI rate that rate could go up if the conditions are appropriate. Over the last several years they haven't passed the laws or created any suitable investment environment etc. so it hasn't.    But believe me once all of that stuff is in place and millions or billions of dollars are pouring in for investment in a private sector/market economy the official rate will change via a float...
12-21-2020   Newshound Guru MilitiaMan  Article:  "Lowering the price of the currency .. What are its implications for the national economy?"  The adjustment to 1460 is a devaluation. They are not going into a market economy with that. They didn't at 1190, so with the further negative adjustment they won't either imo...the US FED RESERVE says they can...devalue and revalue. A revaluation to a supported market based exchange rate can change things quickly and on many fronts...

12-21-2020   Intel Guru MarkZ   [via PDK]  The big news this weekend was the complete unpegging from Iraq …we saw the dropping in value…which was expected and one of the signs I was told to watch for 15 years ago…I was told to watch it devalue before it starts moving up…. I am personally very excited to see that change in value. We have a great week to watch. It only took a week or so when they unpegged the Kuwaiti dinar before we saw a change in value…I think this week will be a big one for us as we watch this play out. We will at least have a good idea what our timing is this week.

12-21-2020   Newshound/Intel Guru tman23  Seen the IQD devaluation on ABC news, and to take place after first of the year. Quite frankly, not a surprise or shock due to the fact Shabibi said the change to currency and lifting the 3 zeroes MUST COME AT THE START OF THE NEW YEAR and not in a quarter or middle of the year. The New Year is because banks start their books for the fiscal year and this is the only time this change can occur. A few years ago the budget calculated that a rate might be around 67 cents, today, today’s conditions might take them to 58 cents or thereabouts...Anyhow it’s all speculation but what isn’t is a change after the New Year...A positive part is now to remain anonymous, you can walk into your Bank wearing a mask and not be questioned or look suspicious LMAO...

12-21-2020   Intel Guru MarkZ   [via PDK]   How about that 1450?  I know a lot of folks are concerned when they saw the dinar rate lowered…This is exactly what we have been waiting to see…it’s one of the signs that things are moving. We saw this in Kuwait…We saw this in China. We have seen this almost every time just before a revaluation or reinstatement…this is good news.

12-21-2020   Newshound Guru Jeff   Iraq just basically came out saying that the value of the dinar against the dollar has devalued...devaluing the currency, which is reducing purchasing power - it's a last-ditch effort to squeeze the three zero notes out of the citizens.  That's all this is...a last-ditch effort to reduce the amount of dinar in the county of Iraq...it's nothing more than a distraction to mislead us, confuse us and to get us to get rid of our dinar...

12-21-2020   Newshound Guru Kaperoni  As we watch events unfold the past week in Iraq, it appears that Iraq has decided to finally float the dinar.  Today's initial devaluation appears to be the first step in this process.  Many asked me if they floated what would the rate be?  I said...right where it is right now!  This devaluation hopefully will be the beginning of good things to come.  With the initial devaluation to 1460, it should clear the way for Iraq to launch the private sector.  And in doing so, begin to create a market economy.  The result hopefully will raise the value.  Only time will tell. The next several months should tell a story as to whether or not Iraq's economy is going to rebound and take off. Today was the first step...

12-21-2020   Newshound Guru Pimpy  Article "Parliament will extend its legislative territory with the arrival of the budget next week"    Quote: "a draft of the physical budget version of 2021 which included a fixing the exchange rate of the dollar against the dinar to 1450."  ...you could buy 1190 dinar for 1 dollar.  What that means is now you could buy 1450 dinar for $1.  That's not good.  It's going in the wrong direction.  We need this number to shrink... 







Catnip's Corner:
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ARTICLE 1 (from PM Kadhimi's website; posted only on Arabic side, not on English side)

The Council of Ministers votes on the federal budget for 2021

The Council of Ministers voted on the federal budget for the fiscal year 2021, in the extraordinary session held today, Monday, under the chairmanship of the Prime Minister, Mr. Mustafa Al-Kazemi.

Media Office of the Prime Minister
21-December-2020

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ARTICLE 2 (from Government of Iraq twitter account)

The White Paper for Economic Reform aims to address the consequences of the crises that Iraq’s economy faced over decades, and empower young Iraqis to access good, sustainable jobs.For more on the White Paper, click here: https://bit.ly/3kDIfnF #EconomicReform #WhitePaper

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ARTICLE 3

Representative economy: a parliamentary approach to restore the exchange rate to its normal position
12/21/2020 14:14 
[Baghdad-Where]

The Parliamentary Economic and Investment Committee confirmed today, Monday, that there is a representative tendency to restore the exchange rate of the dollar to its normal state, indicating that the high exchange rate has affected the poor segment.

Committee member Falah Al-Khafaji said: "We, as members of Parliament, have a tendency to return the exchange rate of the dinar against the Iraqi dollar to 120 or a little more."

He added that "the increase in the exchange rate of the dollar against the Iraqi dinar, the target of which is the very low, poor segment of the population, who are affected by this rise."

He pointed out that "there is an increase in the prices of foodstuffs and all other prices that will affect the poor classes of citizens in society."

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ARTICLE 4

Deputy: Parliament rejects the 2021 budget

12/21/2020 19:23 •
[Baghdad_Where]
MP for the Al-Fateh Alliance, Mukhtar Al-Mousawi, confirmed, on Monday, that the House of Representatives will refuse to accept the draft federal budget law for 2021 in its current form.
Moussawi said, "The House of Representatives has the responsibility to question the Prime Minister, Mustafa Al-Kazemi, as he failed to manage the economic file, and to move away from political courtesies," noting that "the federal budget law for 2021 is unsuccessful and unfair to employees and must reduce the salaries of officials."

He added that "the House of Representatives will refuse to accept the draft federal budget bill for 2021, as it constitutes a great burden on the citizen," noting that "most of the members of the House of Representatives recognized the failure of the Kazemi government and are unwilling to."

Today, Monday, Al-Fateh coalition deputy, Abdel-Amir Al-Taiban, called for the dismissal of Prime Minister Mustafa Al-Kazemi's government as soon as possible.
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ARTICLE 5

Parliamentary Finance: The 2021 budget does not address any crisis, and there is an inflation of presidential allocations

12/21/2020 18:45 • 
[Baghdad-Where]
The Parliamentary Finance Committee confirmed, on Monday, that the draft 2021 budget prepared by the government does not indicate that it addresses any financial crisis, indicating that it contains sums and allocations for presidencies and ministries, exaggerated, large inflation and extravagance.
A member of the Finance Committee, Mahasin Hamdoun, said, "The country under the Al-Kazemi government goes from bad to worse and is moving towards an abyss without planning."

She added that "the Al-Kazemi government talks about a major financial crisis and requested loans and raised the exchange rates of the dollar, which is supposed to be matched by the 2021 draft budget with high austerity and prevention of extravagance." .

Hamdoun explained that "the draft budget for 2021 is devoid of any strategic financial plan, and it appears that Prime Minister Mustafa Al-Kazemi encourages corruption and the corrupt."
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