WOTS MON JAN 10 21
These are the articles I mentioned on the Podcast https://anchor.fm/dashboard/episode/eorp6f
A few days ago, two proposals have been put forward to reduce the effects of the devaluation of the dinar against the dollar, which was determined by a decision of the Ministry of Finance to fix the exchange rate at 1470 dinars against the dollar after it stabilized for more than 15 years, up to 1200 dinars, which caused bad effects on citizens, raising the prices of basic materials and reducing the value of salaries.
Parliament finances clarify its position
A member of the Parliamentary Finance Committee, MP Abd al-Hadi al-Saadawi, revealed, on Saturday, his committee’s opinion about deleting 3 zeros from the Iraqi currency, according to the proposals put forward.
Al-Saadawi said in an interview with (Baghdad Today), that “the monetary policy in Iraq is one of the exclusive powers of the Central Bank and the financial policy is subject to the authority of the Ministry of Finance and the government, which is concerned with it, and it is not the prerogatives of the House of Representatives and the Finance Committee, meaning that changing the exchange rate or removing zeros from the currency is not relevant. Absolutely out of the House of Representatives.
Al-Saadawi added, “We do not see any tendency at the present time to delete zeros from the Iraqi currency by the central bank,” pointing out that “even the exchange rate of the dollar is subject to the powers of the central bank and it was recently raised after a decision inside the bank and if the government has another opinion about the exchange rate, then this matter Up to her ”
Expert: There are pros and cons
In turn, economist Safwan Qusay said in an interview with (Baghdad Today), "There is no urgent necessity to issue a new paper currency with a denomination of 100,000 Iraqi dinars or more, and that the proposal to delete the zeros requires a bank effort and withdraw the circulating currency."
On the other hand, he added, "the level of circulation of the Iraqi dinar is very easy, therefore printing a large currency in a denomination of 100 thousand Iraqi dinars or more will facilitate the process of large financial exchange," noting that "the responsibility and task of issuing these categories of currencies rests with the Central Bank."
He added that "the process of issuing money needs a financial cover in hard currency or gold, in addition to the market’s need for time to absorb the level of devaluation of the local dinar that the government has recently undertaken."
Qusay pointed out that "the step of deleting zeros from the currency raises the level of confidence in the dinar and reduces the burden of transferring cash as well as calculations, but conducting it now may confuse the market because it needs to withdraw the dinar from traders and inject a new currency."
Turn
Earlier, the former budget director at the Ministry of Finance, Hazem Hadi, confirmed that the devaluation of the local currency in the country caused a shock to the market, while the shock that occurred was necessary to finance the budget deficit instead of endangering state sovereignty, as he described.
Hazem Hadi said, in a televised interview (Baghdad Today), that the advantages of the financial budget for the next year are "saving money and avoiding borrowing, because the size of the debt to Iraq has become very large and reached 160 trillion dinars, including internal and external loans."
Hadi added, "The internal debt decreased automatically with the rise in the value of the dollar against the dinar," indicating that "the shock that occurred in the market was inevitable, because covering the financial deficit by borrowing includes major disadvantages, including the loss of state sovereignty."
He pointed out that "the failure of the economic policy in the country in the past years has made Iraq a market for imported goods and the Iraqi market has been flooded with these commodities, and also led to a decrease in revenues due to the decline in the price and production of oil, and all these factors caused a major financial crisis for the Iraqi economy."
Since the collapse of oil prices earlier this year, Iraq is facing an unprecedented liquidity crisis, and the government of Prime Minister Mustafa Al-Kazemi has been forced to borrow from the reserves of the Central Bank to pay nearly $ 5 billion per month, representing public sector salaries and pensions.
The Iraqi local markets in Baghdad and other provinces have been turbulent since last week, after the decision to devalue the currency to compensate for the deficit in the 2021 budget.
The decision sparked a wave of anger in the Iraqi street, but Al-Kazemi defended his government's move and said that he had two options, "Either the collapse of the regime and enter into complete chaos, or we enter into a Caesarean section for reform."
Al-Kazemi cited during a speech at the Iraqi Council of Ministers session held last Saturday, in several countries, including South Korea and Singapore, when they had previously taken "difficult decisions" in order to reform the economy.
Financial Committee: The budget will be delayed for 6 months if it is refused to pass it
Member of the Finance Committee, Representative Jamal Cougar, confirmed, on Saturday, that political parties stand against the passage of the budget, warning of the consequences of its rejection.
He continued, "We should stand against the budget formula, and that it be modified," warning against "refusing to pass it, because it gives room to be delayed at least 6 months, and this is a dangerous matter, because the budget needs to be modified, not delay, and it is in line with the economic reality of the country." .
He pointed out that "there are political positions present, as some parties stand against passing them," stressing that "the country's situation does not bear the disruption of the budget, and that any suspension means delay in paying salaries and that the street will not bear this, and everyone must bear the responsibility for passing them."
COUNCIL OF REPRESENTATIVES MEETS FOR FIRST READING OF IRAQ’S 2021 BUDGET
The Council of Representatives on Saturday (January 9) began consideration of the government’s draft 2021 Federal Budget Law.
Finance Committee Rapporteur Ahmed Safar told the state-run al-Sabah newspaper that a second reading of the draft legislation will likely take place on Monday and Tuesday. It will then be referred to the Finance Committee.
Safar added that “all budget articles are subject to change,” arguing that they are not consistent with the government’s reform program.
The budget will do much to guide economic life across all of Iraq, but many observers are paying attention to how it will affect the Kurdistan Region and relations between Erbil and Baghdad.
In the draft, the Region will receive a 12.76 percent in return for Erbil transferring 250,000 barrels of crude oil per day and a percentage of customs revenue to Baghdad.
Member of the Finance Committee Jamal Kochar told NRT’s 90 Minutes program that “the Kurds should fight for the 2021 budget bill to be implemented as it is, because otherwise Baghdad is likely to demand all the oil of the [Kurdistan] Region due to rising in oil prices."
Kochar said that, unlike the 2019 budget, there is no provision in the budget to continue paying public sector salaries in the Kurdistan Region in the event of a dispute between the two capitals.
Another member of the finance committee, Ahmed Haji Rashid, insisted in a post on Facebook that parliament cannot change the decision about the devaluation of the dinar during the session.
He said that $100 has been pegged at 145,000 Iraqi dinars and the price of a barrel of oil has been set at $42 in the bill and that changing it would undermine the rest of the legislation.
“The current value of the dinar has returned nearly 23 trillion Iraqi dinars to the federal government…any change will spoil the law which increases deficits and the government will not be able to fill them,” he said.
Another aspect of the legislation guaranteed to attract controversy is a provision to devalue the Iraqi dinar, which will increase prices on the imported goods for everyday Iraqis.
a list of the exchange rates of the dollar against the dinar in the Iraqi market:
Baghdad - the price on the Kifah Stock Exchange
143,250
...
Price in exchange (approximate)
142,000
143,500
—————————————-
Sulaymaniyah / Bursa
143,250
-———————
Basra / Stock Exchange
143,000
-———————
Mosul / Joomla
143,100
————————
Erbil / Bursa
143,150
———————-
Karbala / Bursa
143,300
———————-
Najaf / Bursa
143,300
Favorite Currencies Forex Quotes
| Symbol | Bid | Ask | High | Low | Open | Change | Time |
|---|---|---|---|---|---|---|---|
| USD/IQD |  1444.2000 |  1493.4000 | 1458.4000 | 1458.2000 | 1458.2000 | -0.4000 | 12:02 |
| USD/VND | 23050.0000 | 23070.0000 | 23047.9700 | 23046.7100 | 23046.7100 | 2.5100 | 22:10 |
| USD/CNY | 6.4760 | 6.4780 | 6.4905 | 6.4705 | 6.4744 | 0.0014 | 05:08 |
| USD/KWD | 0.3031 | 0.3041 | 0.3033 | 0.3032 | 0.3033 | -0.0001 | 04:23 |
| GBP/USD |  1.3485 | 1.3486 | 1.3567 | 1.3482 | 1.3567 | -0.0076 | 05:10 |
| USD/IRR | 42000.0000 | 42210.0000 | 42097.5000 | 42097.5000 | 42097.5000 | -914.4000 | 07:13 |
| USD/IDR | 14191.0000 | 14202.0000 | 14255.0000 | 13872.0000 | 14035.0000 | 63.0000 | 05:07 |
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Low oil prices, with renewed fears of a new spread of the Corona virus
Oil prices plunged on Monday, due to renewed concerns about global fuel demand amid strict coronavirus closures in Europe and new movement restrictions in China, the world's second largest oil consumer, after a jump in cases there.
Brent crude futures were down 65 cents, or 1.16%, to $ 55.34 a barrel by 05:10 GMT, after earlier rising to $ 56.39, the highest level since February 25, 2020.
The US West Texas Intermediate Index (WTI) slipped 37 cents, or 0.69%, to $ 51.88 a barrel. West Texas Intermediate crude rose to its highest in nearly a year on Friday.
The National Health Authority of China said today, Monday, that mainland China has witnessed the largest daily increase in cases of Covid-19 in more than five months, as new infections continue to rise in Hebei Province, which surrounds the capital Beijing.
Most of Europe is also subject to the toughest restrictions, according to the Oxford Tertiary Index, which assesses indicators such as travel bans and school and workplace closures.
However, oil price losses have been curbed by US President-elect Joe Biden's plans to announce trillions of dollars in new coronavirus relief bills this week, many of which will be repaid through increased borrowing.
Crude prices also remained supported by Saudi Arabia’s pledge last week to voluntarily cut oil production by one million barrels per day in February and March as part of an agreement that would keep most OPEC + producers steady during new shutdowns.
Central Bank sales down more than 50% from last week
The Central Bank of Iraq's foreign exchange sales fell on Monday, registering a 52.17% decline.
According to the correspondent of The Twilight News Agency, the Central Bank of Iraq witnessed during its auction to buy and sell foreign currencies today a decrease in sales by 52.17%, to reach 11 million 625 thousand dollars, covered by the bank at a base exchange rate of 1460 dinars per dollar, compared to Thursday of last week where sales reached 23 million and 450 thousand dollars.
He added that all sales were sold to boost stocks abroad in the form of remittances and credits, while the dollar was not bought in cash.
Our correspondent noted that five banks have met requests to strengthen assets abroad.
Parliament opens a "direct channel" with the government to amend the budget
The Parliamentary Finance Committee expected, on Sunday, to make extensive amendments to the draft budget law for the current year in accordance with the powers of the House of Representatives in terms of transfer according to the constitution, while it disclosed the opening of a direct channel between the government and the Finance Committee, especially those related to the chapters that result in deleting and increasing funds .
"The Finance Committee and members of the House of Representatives have many observations and objections to a large number of its paragraphs, and there is no doubt that it will be subject to wide-ranging amendments in accordance with the powers of the parliament approved by the constitution," said a member of the committee, Representative Jamal Cougar.
Cougar added, "The large number of amendments will need to be reviewed directly with the government, especially those related to adding funds or reducing the fact that Parliament has the authority to transfer only."
He ruled out "restoring the budget to the government and replacing it with opening a direct channel between the government and the Finance Committee, especially with regard to the chapters that result in deleting and increasing funds."
The MP for the State of Law coalition, Alia Nassif, revealed in a previous statement to "the information", the existence of parliamentary intentions to return the draft budget bill to the government
CBI Update: Just a note:
including $0. CASH
ISX Update: Shares Traded: not updated for todayValue Traded: not updated for today
1-10-2021 Newshound Guru Jeff they already did the first reading of the 2021 budget yesterday -Saturday...
1-10-2021 Newshound Guru Pimpy Article: "For the second day, the dollar continues to decline against the dinar in Baghdad and Erbil" It's not just an IR or RV you should be counting on. There are other things that can happen to help increase the value of the dinar. That doesn't mean an IR or RV is not going to happen. I never said that. I'm saying there are other things that can help the situation out. And one of those things are what? The purchasing power of the US dollar falling. In other words it's losing its value. There are articles galore saying the dollar is taking a hit. It should not be a surprise we are expecting this sucker to take a hit big time...the Iraqi dinar will go up in value against the U.S. dollar...
1-10-2021 Newshound Guru MilitiaMan Article quote: "She hopes that these procedures will coincide with discussions within the House of Representatives on the budget, and 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." To protect the citizens is to delete the zeros!! imo This is HUGE.. Wow.
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