WOTS MON APR 19 21
The articles I discussed on the My FX Buddies podcast are posted below:
A strategic partnership between MasterCard and the Central Bank of Iraq to develop payment systems
MasterCard has signed a partnership agreement with the Central Bank of Iraq to digitize the payment systems in the country, in a move aimed at enhancing financial inclusion, advancing social and economic development, reducing the risks of the shadow economy, and accelerating progress towards a cashless society.
The partnership aims primarily to build an efficient, reliable and secure payment system, which will start with the education sector and then expand to other sectors. Not only will this reduce the use of cash, enhance digital payments and increase government revenues, but also overcome significant operational and administrative deficiencies in the education sector by reducing the excessive use of manual processes.
It is noteworthy that the population of Iraq, of 40 million, depends on cash payments on a large scale, as these payments are used in 99.8% of personal consumption spending transactions that amounted to $ 122 billion in 2019. However, this does not reduce the great opportunities available for digital transformation, as the country has a large smartphone penetration rate of up to 70%, and 22% of the population falls within the category of tech-savvy youth between the ages of 15 and 24.
In addition, most students' parents and guardians have limited options for payment methods, as the majority of students use cash for all their payments. In light of the fact that parents or students do not have bank accounts, or do not use online payment services, it is very important to work to encourage a change in the way school fees are paid, which will positively affect the payments system and the economy as a whole.
Commenting on the partnership, Mrs. Doha Abdel-Karim Mohamed said; Director General of the Payments Department at the Central Bank of Iraq: The work that MasterCard has done in Iraq over the past few years has left a noticeable impact on the country's financial services sector and greatly enhanced levels of financial inclusion. We, at the Central Bank of Iraq, are fully aware of the vital role the digital economy plays at this stage, especially enabling the formal economy to grow through a new payment system that is transparent, simple and effective. We also look forward to working with MasterCard to advance the digital transformation process in Iraq, starting with the education sector. ”Khaled Al-Jabali, Regional
President of MasterCard in the Middle East and Africa, said:“ Establishing a digital payments system is very important because it encourages economic development and contributes to Reducing the use of cash and the shadow economy as well. Our work with the Central Bank of Iraq focuses on improving the efficiency of the economy as a whole, starting with educational institutions, by giving students, parents and merchants a safer, easier and more comfortable way to pay.
The partnership between MasterCard and the Central Bank of Iraq is an important shift that allows the development of an integrated digital payment system that covers the basic pillars of the economy in Iraq, including the use of public policies and systems to curb the shadow economy, the comprehensive modernization of the payments system, and the digitalization of key value chains. These measures include government revenue and payments, consumer spending, as well as business purchases and salary payments.
The partnership between MasterCard and the Central Bank of Iraq is an important shift that allows the development of an integrated digital payment system that covers the basic pillars of the economy in Iraq, including the use of public policies and systems to curb the shadow economy, the comprehensive modernization of the payments system, and the digitalization of key value chains.
These measures include government revenue and payments, consumer spending, as well as business purchases and salary payments.
Advisor Al-Kazemi: Floating the currency leads to the collapse of the Iraqi market
Mazhar Muhammad Salih, Advisor to the Prime Minister for Financial and Economic Affairs, confirmed, on Monday, that it is not permissible to float the currency in Iraq, indicating that this leads to the collapse of the market.
Saleh said that "it is not permissible to float the currency in Iraq because the market will collapse in this case," indicating that "the entry and exit of hard currency does not enter the market, which is only an exit for it, but the government is the one that brings this hard currency."
Saleh added, "If the government withdraws its hand, the supply will stop and the demand increases, and therefore the market will collapse."
He pointed out that “the problem in Iraq is that the market is asking and that the state is offering, and in the event that the Central Bank does not sell the dollar, it means that all the supply has stopped and there is no other offer. Because demand will be more than supply. "
He stressed that "the state is the bidder in Iraq, and therefore if the state tends to float, this means that there is no supply and thus prices collapse."
Floating currency is completely liberalizing the exchange rate, so the government or the central bank does not interfere in determining it directly, but rather it is secreted automatically in the currency market through the supply and demand mechanism that allows setting the national currency exchange rate against foreign currencies.
It is noteworthy that some officials talk from time to time on the need to float and liberalize the currency to preserve the hard currency reserves at the Central Bank.
another version
The prime minister's financial and economic advisor, Mazher Mohammed Saleh, said On Monday that the currency should not be floated in Iraq, indicating that this leads to the collapse of the market.
link
"It is not permissible to float the currency in Iraq because the market will collapse in this case," Saleh told Shafq News.
"If the government withdraws its hand, the supply will stop and demand will increase, so the market will collapse," Saleh said.
"The problem in Iraq is that the market is asking and that the state is offering and if the central bank does not sell to the dollar, it means that the whole supply has stopped and there is no other offer, and if there is another offer, it is not enough to meet demand, so the prices will rise because the demand will be more than supply," he said.
"The state is the exhibitor in Iraq, so if the state is going to float, it means there is no offer and prices are falling," he said.
The float of the currency is a complete liberalization of the currency exchange rate, which is not directly interfered with by the Government or the Central Bank, but is automatically excreted in the currency market through the supply and demand mechanism that allows the exchange rate of the national currency to be determined against foreign currencies.
Some officials occasionally talk about the need to float and liberalize the currency to maintain the central bank's hard currency reserves.
The Iraqi dinar deepens the pain of the poor, ignites inflation ... and an emergency plan for reform
Official data revealed an increase in poverty indicators in Iraq, and high inflation rates after the decision to raise the exchange rate of the Iraqi dinar.
And the Iraqi Ministry of Planning announced, today, Monday, that poverty indicators have risen in the country, and that it has completed a three-track reform plan concerned with developing remedies and finding solutions to reduce levels of inflation and economic contraction.
A spokesman for the ministry, Abdul Zahra Al-Hindawi, said in a statement, that Al-Ain Al-Akhbariya obtained a copy of it, that "after raising the dollar exchange rate, the inflation index rose by 4.9 to 5%, while the primary poverty indicators increased by 26 to 27%." .
Al-Hindawi pointed out that the Ministry of Planning has now "finished preparing a" reform and recovery plan that responds to the challenges ", and taking into account the complex crisis that the country is experiencing, which is the economic crisis and the health crisis, and the resulting increase in poverty, raising prices, inflation, and the state of economic downturn. Hit the country. "
Regarding the details of implementing the plan, he explained that it will be two years old from 2021 to 2023, and it will work on 3 tracks, the first is the economic track, which includes improving the level of the economy and supporting the private sector, and the second is the social track, which includes support for the level of services in the field of health and education, the return of the displaced and the empowerment of women. The third track is the spatial axis that includes addressing the development gaps in the governorates.
The World Bank had issued warnings recently stating that the poverty rate in Iraq may reach 50% this year, in the absence of serious government reforms.
According to data from the Ministry of Planning, Baghdad, which has a population of about 9 million, finds four million of them difficult to provide for a living.
According to a study conducted by the Iraqi Ministry of Planning in cooperation with the World Bank and UNICEF, about 32% of the country’s population lives below the poverty line. Last year alone, the poverty rate in Iraq increased by 3% compared to 2019, meaning that the number of people living below the poverty line reached more than 12 million. And 600 thousand people.
Bloomberg expects the price of a barrel of oil to rise to $ 74 ... and talks about the reason and the timing
Data from the International Energy Agency showed that the oil reserves accumulated in storage facilities around the world during the epidemic were practically exhausted, which may increase oil prices in the second half of this year.
Oil reserves in the world's advanced economies were 57 million barrels higher than the average data for this indicator for the years 2015-2019.
And Bloomberg News reported that the surplus reserves of oil in July 2020 were almost five times higher, amounting to 249 million barrels, indicating that stocks decreased in recent months further, amid increased demand.
The agency said that the largest oil reserves are currently stored in China, while US hydrocarbon reserves have practically returned to the level observed before the epidemic, reaching 1.28 billion barrels in February.
And Bloomberg notes that oil stocks on the east coast of the United States, last week, hit their lowest level in 30 years.
Over the past two weeks, tanker oil reserves decreased by 27% to 50.7 million barrels.
The cost of Brent crude futures for the month of June on the London Stock Exchange rose on Friday to $ 67.08 a barrel.
Bloomberg predicted that the price of oil, against the backdrop of the expected reduction in oil reserves in the second half of 2021, may rise to $ 74 a barrel.
The oil exporters had decided, contrary to expectations, in a meeting held on the first of April, to increase oil production as of next May.
OPEC + countries will increase their oil production in May by 350,000 barrels per day, in June by another 350,000 barrels per day, and in July by another 450,000 barrels per day. The decision was taken immediately for a period of three months.
It is noteworthy that OPEC + countries, which represent more than 40% of global oil production, have met every month since the beginning of 2021 to determine production levels in the short term. This approach gives members more flexibility in the face of a recovery in fragile demand.
Central Bank Governor opens the headquarters of the Iraqi Deposit Insurance Corporation
link this is a positive thing it will give citizens and investors more confidence in the banks
Today, Monday, the Governor of the Central Bank of Iraq, Mustafa Ghaleb Makhaif, inaugurated the new headquarters of the Iraqi Deposit Insurance Corporation.
In a statement received by Alsumaria News, the governor said, "The company will contribute to restoring confidence in the private banks operating in Iraq", Stressing that" the Central Bank will pay attention to this company as it is one of the pillars of the banking business
And that "the public and private banking sector actively participated in the establishment of this company to become one of the leading institutions in the banking business and support it."
It is noteworthy that the Iraqi Deposit Insurance Company provides a cover to guarantee the public’s deposits with Iraqi banks licensed by the Central Bank of Iraq insideIraq Especially small depositors.
Below here is the regular WOTS "Word on the Street" report:
he exchange rates of the dollar, foreign currencies, gold and oil in the markets, governorates, and the Iraqi Stock Exchange for Monday 19-04-2021.
The price of the dollar in Iraq today 4/19/2021
The price of the dollar in Baghdad Stock Exchange struggle
Dollar prices in the Iraqi provinces today, Monday, April 19, 2021
Favorite Currencies Forex Quotes
| Symbol | Bid | Ask | High | Low | Open | Change | Time |
|---|---|---|---|---|---|---|---|
| USD/IQD |  1438.7000 |  1488.9000 | 1456.4000 | 1440.5000 | 1456.4000 | -17.5000 | 20:00 |
| USD/VND | 23073.0000 | 23075.0000 | 23046.7800 | 22962.9300 | 23046.7800 | -60.7800 | 22:44 |
| USD/CNY |  6.5069 | 6.5089 | 6.5290 | 6.5065 | 6.5202 | -0.0130 | 05:16 |
| USD/KWD | 0.3010 | 0.3020 | 0.3014 | 0.3011 | 0.3012 | 0.0000 | 16:00 |
| GBP/USD | 1.3891 | 1.3895 | 1.3901 | 1.3809 | 1.3825 | 0.0063 | 05:17 |
| USD/IRR | 42000.0000 | 42210.0000 | 42097.5000 | 42097.5000 | 42097.5000 | 0.0000 | 00:00 |
| USD/IDR | 14513.0000 | 14513.0000 | 14574.0000 | 14513.0000 | 14536.0000 | -20.0000 | 05:17 |
Legal clarification: What does removing Iraq from the 'high risk countries' list mean
Legal expert Tariq Harb commented, on Monday, about Iraq's exit from the British classification of high-list countries, in what he considered a "political and economic victory" for the government and the Central Bank.
He added, "For a period of time, the Iraqi newspaper Al-Waqi’a has hardly been issued without publishing international procedures and decisions, especially those issued by the special committee linked to the UN Security Council with regard to combating money laundering, terrorist financing and other charges related to seizing the money of those accused of money laundering and terrorist financing, even if not They are Iraqis, and a higher committee has been established in the Central Bank with the mission of combating money laundering and terrorist financing, and these and other measures such as activating the AML / CFT Law No. 39 of 2015, therefore Resolution 392 of 2021 was issued including raising the name of Iraq from among the countries with high risks and thus it deserved The government and the Central Bank deserved praise and praise for their efforts in removing Iraq from the lists of high-risk countries.
Earlier, the Central Bank of Iraq announced a departure from the British classification of high-risk countries.
A bank statement, of which Nass received a copy (April 18, 2021), stated that “within the efforts of the Central Bank of Iraq and through the Office of Combating Money Laundering and Combating Financing of Terrorism in developing the business environment within the international compliance standards for combating money laundering and terrorist financing, the British Treasury In the United Kingdom government department, not to include the name of the Republic of Iraq from among the lists of high-risk countries according to Resolution No. 392 of 2021.
He added that "the United Kingdom adopted the recommendations of the Financial Action Task Force (FATF) in classifying countries with high risks in terms of applying anti-money laundering and terrorist financing standards, after their exit from the European Union countries, and promised Iraq is committed to keeping up with and implementing international recommendations."
He continued, "The fact that Iraq is not included in the list of high-risk countries is positively reflected in facilitating business and entering companies between the two countries, as well as supporting financial operations between the Iraqi banking sector and the United Kingdom."
Bloomberg expects the price of a barrel of oil to rise to $ 74 ... and talks about the reason and the timing
Data from the International Energy Agency showed that the oil reserves accumulated in storage facilities around the world during the epidemic were practically exhausted, which may increase oil prices in the second half of this year.
Oil reserves in the world's advanced economies were 57 million barrels higher than the average data for this indicator for the years 2015-2019.
And Bloomberg News reported that the surplus reserves of oil in July 2020 were almost five times higher, amounting to 249 million barrels, indicating that stocks decreased in recent months further, amid increased demand.
The agency said that the largest oil reserves are currently stored in China, while US hydrocarbon reserves have practically returned to the level observed before the epidemic, reaching 1.28 billion barrels in February.
And Bloomberg notes that oil stocks on the east coast of the United States, last week, hit their lowest level in 30 years.
Over the past two weeks, tanker oil reserves decreased by 27% to 50.7 million barrels.
The cost of Brent crude futures for the month of June on the London Stock Exchange rose on Friday to $ 67.08 a barrel.
Bloomberg predicted that the price of oil, against the backdrop of the expected reduction in oil reserves in the second half of 2021, may rise to $ 74 a barrel.
The oil exporters had decided, contrary to expectations, in a meeting held on the first of April, to increase oil production as of next May.
OPEC + countries will increase their oil production in May by 350,000 barrels per day, in June by another 350,000 barrels per day, and in July by another 450,000 barrels per day. The decision was taken immediately for a period of three months.
It is noteworthy that OPEC + countries, which represent more than 40% of global oil production, have met every month since the beginning of 2021 to determine production levels in the short term. This approach gives members more flexibility in the face of a recovery in fragile demand.
Central Bank Governor opens the headquarters of the Iraqi Deposit Insurance Corporation
link this is a positive thing it will give citizens and investors more confidence in the banks
Today, Monday, the Governor of the Central Bank of Iraq, Mustafa Ghaleb Makhaif, inaugurated the new headquarters of the Iraqi Deposit Insurance Corporation.
In a statement received by Alsumaria News, the governor said, "The company will contribute to restoring confidence in the private banks operating in Iraq", Stressing that" the Central Bank will pay attention to this company as it is one of the pillars of the banking business
And that "the public and private banking sector actively participated in the establishment of this company to become one of the leading institutions in the banking business and support it."
It is noteworthy that the Iraqi Deposit Insurance Company provides a cover to guarantee the public’s deposits with Iraqi banks licensed by the Central Bank of Iraq inside Iraq Especially small depositors
A strategic partnership between MasterCard and the Central Bank of Iraq to develop payment systems
MasterCard has signed a partnership agreement with the Central Bank of Iraq to digitize the payment systems in the country, in a move aimed at enhancing financial inclusion, advancing social and economic development, reducing the risks of the shadow economy, and accelerating progress towards a cashless society.
The partnership aims primarily to build an efficient, reliable and secure payment system, which will start with the education sector and then expand to other sectors. Not only will this reduce the use of cash, enhance digital payments and increase government revenues, but also overcome significant operational and administrative deficiencies in the education sector by reducing the excessive use of manual processes.
It is noteworthy that the population of Iraq, of 40 million, depends on cash payments on a large scale, as these payments are used in 99.8% of personal consumption spending transactions that amounted to $ 122 billion in 2019. However, this does not reduce the great opportunities available for digital transformation, as the country has a large smartphone penetration rate of up to 70%, and 22% of the population falls within the category of tech-savvy youth between the ages of 15 and 24.
In addition, most students' parents and guardians have limited options for payment methods, as the majority of students use cash for all their payments. In light of the fact that parents or students do not have bank accounts, or do not use online payment services, it is very important to work to encourage a change in the way school fees are paid, which will positively affect the payments system and the economy as a whole.
Commenting on the partnership, Mrs. Doha Abdel-Karim Mohamed said; Director General of the Payments Department at the Central Bank of Iraq: The work that MasterCard has done in Iraq over the past few years has left a noticeable impact on the country's financial services sector and greatly enhanced levels of financial inclusion. We, at the Central Bank of Iraq, are fully aware of the vital role the digital economy plays at this stage, especially enabling the formal economy to grow through a new payment system that is transparent, simple and effective. We also look forward to working with MasterCard to advance the digital transformation process in Iraq, starting with the education sector. ”Khaled Al-Jabali, Regional
President of MasterCard in the Middle East and Africa, said:“ Establishing a digital payments system is very important because it encourages economic development and contributes to Reducing the use of cash and the shadow economy as well. Our work with the Central Bank of Iraq focuses on improving the efficiency of the economy as a whole, starting with educational institutions, by giving students, parents and merchants a safer, easier and more comfortable way to pay.
The partnership between MasterCard and the Central Bank of Iraq is an important shift that allows the development of an integrated digital payment system that covers the basic pillars of the economy in Iraq, including the use of public policies and systems to curb the shadow economy, the comprehensive modernization of the payments system, and the digitalization of key value chains. These measures include government revenue and payments, consumer spending, as well as business purchases and salary payments.
The partnership between MasterCard and the Central Bank of Iraq is an important shift that allows the development of an integrated digital payment system that covers the basic pillars of the economy in Iraq, including the use of public policies and systems to curb the shadow economy, the comprehensive modernization of the payments system, and the digitalization of key value chains.
These measures include government revenue and payments, consumer spending, as well as business purchases and salary payments.
CBI Update: Just a note:
including $ 22,180,000. CASH
ISX Update: Shares Traded: not updated for todayValue Traded: not updated for today
4-18-2021 Newshound Guru Pimpy Obviously the more they grow the private sector the better the economy rebounds. It it strengthen the currency...building up your foreign reserves assets helps the currency. The GDP of your economy helps grow the currency. We won't necessarily need to have some RI or RV called out. There could be other things that happen that affect the value...that does not mean there won't be an RI or RV called. That still might happen but there are other things we can be focused on that help our situation...
4-18-2021 Newshound/Intel Guru Mnt Goat Article: "MEANING OF CURRENCY REVALUATION AND WHAT WILL HAPPEN IF IRAQ TAKES THIS PATH" Quote: "The act of altering the value of a nation’s currency relative to other currencies is typically influenced by market pressures. The pressure is now." The pressure is not going to end until the CBI completes the project to delete the zeros and the revaluation of the dinar against the dollar.
4-18-2021 Newshound Guru Kaperoni ...we have spent the last eight plus years telling members the truth of how or if the dinar can ever appreciate in value. It's based on sound principles and the economic success of Iraq. There is no magic wand or overnight RV. There is no significant overnight RV, it's not how monetary policy works.
4-18-2021 Newshound Guru Pimpy There's obviously a lot of pressure to have the rate change take place in Iraq and it's coming from all angles. Having said that, these reforms are doing exactly what they were supposed to do - help get Iraq back on their feet. I know they were talking it's going to take three to five year. I'm not seeing that. They're actually moving at a much faster pace...
4-18-2021 Newshound Guru Breitling Let's do a thought experiment. Let's say you live in Iraq and you have a certain amount of currency. They are not going to gain like you and I are. Because we bought with U.S. dollars. That means we bought it at a tenth of a penny. Well their economy is set up at a tenth of a penny. In other words they didn't pay anything. The currency was just given to them. If you go buy a coke at a tenth of a penny [Or 1450 dinars] and the value goes up because there's a revaluation or they just simply corrected their currency - they're just going to move the decimal over. Now it's just a dollar. So now you have the currency that's a dollar and a coke that has the price tag that's a dollar...There's going to be a little bit of gain for them but not like you and I are going to get because we bought with the U.S. dollar. That's a principle you have to understand.
4-18-2021 Newshound/Intel Guru Mnt Goat Article: "GETTING INTO IRAQ HAS NOW NEVER BEEN EASIER" This is part of the plan to re-open the country to international status and allow a free flow of people and capital in and out of the county. This is what we need to see.
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