WOTS FRI JAN 8 21
These 3 articles are the ones I talked about on the podcast
https://anchor.fm/dashboard/episode/eop1pm
Iraqi finance announces new developments at the exchange rate of the dinar
The Finance Ministry on Friday promised to adjust the exchange rate of the foreign currency against the Iraqi dinar, following a decision by the central bank to devalue the local currency and raise the prices of imported goods and goods in the country.
The ministry said in a statement to Twilight News that it is fully aware that there are a number of supportive measures to be taken to increase the positive effects of the exchange rate adjustment. The Ministry of Finance has not been able to do so publicly because of the sensitivity of the issue and because the budget must be approved first by the Council of Ministers.
"She has led extensive discussions in recent weeks after the cabinet approved the budget on the follow-up to the exchange rate adjustment with many parties inside and outside the government," she said.
The discussions will culminate next week in a proposed expanded meeting with key public and private economic actors, where the Finance Ministry will develop a detailed policy program designed to increase the benefits of the exchange rate adjustment, she said.
In a statement, the ministry expressed hope that the measures would coincide with discussions within the House of Representatives on the budget.
"The main policy measures for the protection of the poor and vulnerable have been included in the budget and discussed in the minister's statement on the budget," the statement said.
The Central Bank of Iraq has decided to raise the selling price of the dollar to banks and exchange companies to 1,460 dinars, from 1,182 dinars per dollar, in order to offset the decline in oil revenues caused by the decline in oil prices.
Iraq relies 90 percent of its income on oil revenues, the last time it devalued the dinar was in December 2015 when it raised the selling price of the dollar to 1,182 dinars from 1,166 dinars previously.
The Central Bank launched its decision on the new price to sell the dollar at the currency auction on December 20, and since then, the bank has seen a decline in currency sales.
Iraq is under great pressure under the worst economic crisis since 2003 and so far, with low oil prices and the outbreak of the Coronavirus.
The journey of devaluing the dinar is "not over" here ... The Finance Ministry is preparing for broad measures that it discussed for weeks and did not "reveal"
The Ministry of Finance in Iraq is preparing to take "supportive measures" to remedy the risks and effects that the raising of the dollar exchange rate against the Iraqi dinar may cause in the country.
"The Ministry of Finance is fully aware that there are a number of supportive measures that need to be taken to increase the positive effects of adjusting the exchange rate," the ministry said in a statement, which "Yes Iraq" received a copy of, noting that "the Ministry of Finance was unable to do this publicly due to the sensitivity of the issue and because The budget must first be approved by the Council of Ministers.
And she added: “The Ministry of Finance has led extensive discussions in the past weeks after the budget was approved by the Council of Ministers on the follow-up to adjusting the exchange rate with many parties inside and outside the government. These discussions will culminate next week with a proposed expanded meeting with the main economic actors from the public and private sector, where the Ministry of Finance will develop a program. Its detailed policy is designed to maximize the benefits from the exchange rate adjustment ”.
And she continued, "The Ministry of Finance hopes that these procedures will coincide with discussions within the House of Representatives on the budget. It should be noted that the main policy measures to protect the poor and the vulnerable have been included in the budget and discussed in the minister's statement regarding the budget."
Structural reform
Yesterday, Moody's Investors Service for the Management of US Economic Risks considered in a report that the devaluation of the Iraqi currency would ease liquidity pressures in the short term only, and that in the event that the Iraqi government did not undertake structural reforms, this easing would be only temporary and would need to reduce the dinar to an additional number .
"The devaluation of the Iraqi dinar will strengthen the country's financial position in the near term by increasing oil revenues in local currency, thus helping it reduce the deficit," the British newspaper The National reported in a report.
He added that "Iraq, which is the second largest oil exporter in OPEC, depends in 90 percent of government spending on oil revenues. Most of the borrowing was by purchasing short-term US government papers, which led to the erosion of its foreign currency reserves."
The agency stated that “the short-term impact of devaluation on Iraq's debt will be mixed. It is expected that the debt-to-GDP ratio in Iraq will increase by about two percentage points, but it will reduce the debt-to-income ratio by 6 percentage points.
And that "it is likely that the depreciation of the currency will lead to an increase in inflation, given that Iraq imports a lot of food and consumer goods, however, any rise in inflation carries with it the risks of political and social stability."
Moody's analysts said that “if Iraq does not implement structural reforms to reduce the size of public sector wages and pension bills, reduce energy subsidies and increase non-oil revenues, the relief provided by the devaluation may be only temporary,” noting that “if the government is unable to control Spending this year, the central bank will face pressure to devalue the dinar further, threatening an inflationary spiral.
Favorite Currencies Forex Quotes
| Symbol | Bid | Ask | High | Low | Open | Change | Time |
|---|---|---|---|---|---|---|---|
| USD/IQD |  1436.5000 |  1485.5000 | 1458.8000 | 1458.5000 | 1458.5000 | 1.1000 | 06:09 |
| USD/VND | 23066.0000 | 23069.0000 | 23063.4600 | 23061.6000 | 23061.6000 | 2.1200 | 00:26 |
| USD/CNY |  6.4633 | 6.4653 | 6.4773 | 6.4619 | 6.4772 | -0.0139 | 05:15 |
| USD/KWD | 0.3031 | 0.3041 | 0.3031 | 0.3031 | 0.3031 | 0.0000 | 05:12 |
| GBP/USD | 1.3597 | 1.3598 | 1.3604 | 1.3538 | 1.3562 | 0.0035 | 05:24 |
| USD/IRR | 42000.0000 | 42210.0000 | 42097.5000 | 42097.5000 | 42097.5000 | -914.4000 | 07:13 |
| USD/IDR | 14058.0000 | 14067.0000 | 14106.0000 | 13897.0000 | 14101.0000 | -44.0000 | 05:23 |
Wells Fargo Advisors to Exit All International Business
Iraqi Articles:
Oil prices hold at nearly a year high and Brent above $54
Oil prices held near an 11-month high on Friday, and continued on a strong weekly gain, as Saudi Arabia's pledge to cut production continued to boost sentiment in the oil market.
Brent crude rose 13 cents, or 0.2%, to $54.51 a barrel by 0531 GMT. The global benchmark crude touched $54.90 on Thursday, the highest since February.
West Texas Intermediate gained 14 cents, or 0.3%, to $50.97. Crude closed up 0.4% on Thursday, after also hitting its highest level since February, at $51.28 a barrel.
The two benchmarks are moving forward towards gains of about 5% this week.
"Saudi Arabia's decision to make voluntary production cuts continues to support the market," said Hiroyuki Kikukawa, General Manager of Research at Nissan Securities.
"The strength of global equities, backed by abundant liquidity, also stimulates new oil purchases," he said, but warned that oil and stock markets may soon see a correction, as their rise does not reflect the current state of oil demand and the global economy.
Earlier this week, Saudi Arabia, the world's largest oil exporter, said it would cut production by an additional 1 million barrels per day in February and March.
UBS raised its forecast for Brent crude to $60 per barrel by mid-2012, following a unilateral cut in Saudi Arabia and expectations of strong recovery in demand in the second quarter, as travel rebounded due to the distribution of vaccines against the Coronavirus.
Meanwhile, Asian shares hit record highs today, while Japan's Nikkei hit a three-decade high, as investors turned a blind eye to rising cases of MERS-CoV and political turmoil in the United States to focus on hopes for an economic recovery later in the year.
Iraqi finance announces new developments at the exchange rate of the dinar
The Finance Ministry on Friday promised to adjust the exchange rate of the foreign currency against the Iraqi dinar, following a decision by the central bank to devalue the local currency and raise the prices of imported goods and goods in the country.
The ministry said in a statement to Twilight News that it is fully aware that there are a number of supportive measures to be taken to increase the positive effects of the exchange rate adjustment. The Ministry of Finance has not been able to do so publicly because of the sensitivity of the issue and because the budget must be approved first by the Council of Ministers.
"She has led extensive discussions in recent weeks after the cabinet approved the budget on the follow-up to the exchange rate adjustment with many parties inside and outside the government," she said.
The discussions will culminate next week in a proposed expanded meeting with key public and private economic actors, where the Finance Ministry will develop a detailed policy program designed to increase the benefits of the exchange rate adjustment, she said.
In a statement, the ministry expressed hope that the measures would coincide with discussions within the House of Representatives on the budget.
"The main policy measures for the protection of the poor and vulnerable have been included in the budget and discussed in the minister's statement on the budget," the statement said.
The Central Bank of Iraq has decided to raise the selling price of the dollar to banks and exchange companies to 1,460 dinars, from 1,182 dinars per dollar, in order to offset the decline in oil revenues caused by the decline in oil prices.
Iraq relies 90 percent of its income on oil revenues, the last time it devalued the dinar was in December 2015 when it raised the selling price of the dollar to 1,182 dinars from 1,166 dinars previously.
The Central Bank launched its decision on the new price to sell the dollar at the currency auction on December 20, and since then, the bank has seen a decline in currency sales.
Iraq is under great pressure under the worst economic crisis since 2003 and so far, with low oil prices and the outbreak of the Coronavirus.
The importance of taxes for the budget
Taxes are one of the most important resources for public budgets in different countries of the world. The amounts collected through the taxation of the incomes of citizens and the various businesses and economics represent a large proportion of the resources involved in the preparation of the budget. In addition, the government has been working to increase the number of women in the labour force, and the number of women in the labour force has increased.
The competent authorities in our country responsible for the economic file are supposed to work to optimize the investment of this important budget resource and to achieve the maximum possible levels of revenues, which can be employed by pouring into the state budget and can achieve growing resources in the future if it is better regulated, collected and legislated.
The progressive tax system can be adopted on all incomes and various businesses and economics so that the maximum fairness and equal taxation is achieved and obtained by the tax rate by the value of income obtained by the individual and according to the value of the business or economic, which ensures that all businesses and economics are covered by the tax system broadly and achieves large returns distributed among all these businesses, whether small, medium or large, and thus maximize the amounts collected by taxes imposed on all economic activities. in the country.
The adoption of the elaborate tax system in our country will provide the general budget with a large financial resource that can fill a vast deficit of the budget from the multiplicity of resources, other than the supplier of crude oil exports, so that it can be eliminated to a large extent from the enormous over-reliance on this single resource for the budget and rid it of dependence on it and the major problems posed by the fall in crude oil prices, which sometimes expose the national economy in general to intractable dilemmas that are difficult to find solutions, as the only resource for the budget when it is subject to decline. Revenue certainly means that the whole budget is in deficit, and this deficit is determined by the rate of decline in crude oil prices.
The dependence of the national economy as a whole for a single resource is a crude whose prices in the markets are subjected to significant fluctuations up and down is extremely dangerous because it exposes the entire national economy to serious risks that cannot be addressed in the future, which makes it imperative for the competent authorities to work diligently to find appropriate solutions to diversify the resources of the public budget in Iraq, which is one of these resources, which constitutes significant proportions if the tax system is applied accurately and efficiently.
Zebari: America supervises the transfer and transfer of Iraqi funds. Pompeo sent a message to Baghdad and Erbil
The leader of the Kurdistan Democratic Party, Hoshibar Zebari, said that most of Iraq’s money is in American banks for oil sales, while Washington is transporting the money “cash” to Baghdad by aircraft.
Hoshibar Zebari said in a televised interview that she followed (Baghdad today), that “Iraq is on a hot plate due to the US-Iranian escalation,” noting that “the period until January 20 is tense and troubling until the transfer of power from the current President Donald Trump to the elected Joe Biden.”
Zebari added, “Iran does not want escalation, and this is auspicious, but we fear undisciplined groups,” noting that “what is currently being targeted are logistical convoys of Iraqi contractors with the international coalition.”
He continued, “US Secretary of State Mark Pompeo informed Baghdad and Erbil that the continued attacks against the American embassy in Baghdad will push Washington to close it,” indicating that “the closure of the American embassy will perhaps pave the way for the closure of foreign embassies and the United Nations mission, which will create a dangerous diplomatic vacuum.”
The leader of the Kurdistan Democratic Party asserted that “Iraq is going through an economic crisis, and the embassy closure will pave the way for investment to leave and prevent investors from coming,” suggesting that there will be “2,500 American diplomats in Iraq after reducing the number of embassy cadres.”
Regarding the US military moves in the Gulf region, Zebari said, “The massive US military moves in the Gulf region sent a message to Iran that it should not consider any action as the anniversary of the assassination of the Quds Force commander Qassem Soleimani arrives.”
In the file of Iraqi funds in the United States, the former minister said, “The majority of Iraqi funds are in American banks for oil sales, and are transported through planes as cash money to Iraq, and this matter is continuing, and I was briefed on it by Estzari days of the Ministry of Finance,” pointing out that “the states The United States could do a lot that would harm Iraq economically if targeted. ”Regarding the devaluation of the Iraqi currency, he stressed that “the option to go towards raising the value of the dollar against the dinar is not new, and when I was in the government, we used to hesitate to go towards it due to fears that it would harm citizens, but now there is no option in front of the government, as you say.”
And the leader of the Kurdistan Democratic Party stated that “the change of the exchange rate took place in consultation with the leaders of the political forces,” noting that “the government white paper is ambitious and good, and it was written to reform the economic situation and convince the international community to help Iraq, but it will only be applied with boldness and correct leadership.”
1-7-2021 Newshound Guru Kaperoni ...Iraq is moving forward with the new official exchange rate at 1460 currently. The only way the dinar can go up in value is with the success of the economy.
1-7-2021 Newshound/Intel Guru Mnt Goat ...the CBI is not going to initiate the “project to delete the zeros” until they know they can continue with the process all the way to completion up to the reinstatement including the new IMF basket. They cannot issue lower denominations without a guarantee that the reinstatement at a higher rate will happen, otherwise these notes will be totally worthless and Iraq would jeopardize the economy of Iraq even a worse situation...
1-7-2021 Intel Guru MarkZ [via PDK] Nearly all the news right now that I am hearing is pretty positive. The information is hitting that the timetable has been advanced to get the reset done before the 20th. I am hearing from all my financial people that it is a mad scramble to get the reset out the door. I am not hearing anything specific on...dollar values on the currencies…just that we are expected to see a much expediated timetable to get the reset done.
1-7-2021 Intel Guru Frank26 ...Iraq has an international rate outside of their country at 1190 to take advantage of their deals. But inside domestically there's a 1 to 1 rate deal they made with the IMF. 1450 was for investment purposes and to help pay the salaries at a lesser cost...Brilliant. 1450 is going to leave IMO in 2 weeks or less because there is another change to their rate coming and this one will add purchasing power to their currency at a 1 to 1 level.
1-7-2021 Intel Guru Bruce [via WiserNow] ...information that we’ve had... information talking about us...receiving notifications and one particular transmission had us receiving notification on Thursday...that goes in line and corresponds with another banks interpretation of our timing...We could get notified Thursday and start Friday...it would not surprise me if we were notified Thursday morning and got started and appointments set - and started on that day – so we’re just going to have to wait it out and see...We know that Iraq is ready to go and not waiting much longer...I cannot really get into the rates – they are changing – constantly updated – and traded – and something we’re going to know when we get in there...So hang in there – be patient...
1-7-2021 Newshound/Intel Gurus Walkingstick & Frank26 If we progressively see the auction numbers continue to fall that's another confirmation that the American dollar is about to leave the Iraqi market and very soon to be replaced with a new... denomination and a new exchange rate for these new small category notes. It's that simple. It's not complicated. It's on course.
ARTICLE 3
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