Thursday, April 15, 2021

WOTS WED APR 14 21

WOTS WED APR 14 21

These are the articles I discussed on the My FX Buddies Podcast at:  https://anchor.fm/dashboard/episode/euvvat

Iraqis are bemoaning the rising cost of living as they stock up on food ahead of the fasting month of Ramadan during which families get together for iftar meals after sunset

Parliamentary committee: the budget will adopt a new way to deal with the 'petrodollar' clause

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The Parliamentary Oil and Energy Committee announced, on Wednesday, that the 2021 budget will adopt a new method regarding the "petrodollar" clause, as well as adding projects worth 1 trillion dinars to the oil-producing provinces.

Committee member Sadiq Al-Sulaiti said, in a statement to NRT Arabia (April 14, 2021), that "the issue of (petrodollars) in all budgets was mentioned that there are dues for oil-producing provinces, as well as provinces that contain refineries as part of the allocations of" petrodollars ", through sums For these provinces within their own investment plan.

Al-Sulaiti noted that "this issue is written in the budgets, but it is not applied, because the Ministry of Finance was citing the lack of financial revenues and the deficit in financing" petrodollar "projects remains.

Al-Sulaiti added that "the debts of the Ministry of Finance to the southern governorates amounted to more than 25 trillion dinars, according to the" petrodollar "clause, and this amount has not been paid yet. For the "petrodollars", by opening accounts on a monthly basis from oil revenues that are deducted from the "petrodollars" in order for these projects to be organized by the producing provinces according to their production quotas, and the amount is kept away from the disposal of the Ministry of Finance.

Al-Sulaiti added, "We hope that this step will help in finding investment service projects for these governorates, as they are worthy of them," stressing that "members of the House of Representatives are following up this issue with the Ministry of Finance in order to bring it into implementation as soon as possible." For oil, which is a very good amount that will give at least a push in the field of organizing service projects for these provinces, "noting that" the covered governorates are most of the southern provinces, as well as the central and Baghdad governorates.


Explosives-laden drone targets U.S. forces at Iraq's Erbil airport -Kurdish officials

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ERBIL, Iraq (Reuters) -A drone dropped explosives near U.S. forces stationed at Erbil airport in northern Iraq late on Wednesday, Kurdish officials said, with no immediate reports of casualties.

It was the first known attack carried out by an unmanned aerial drone against U.S. forces in Erbil, amid a steady stream of rocket attacks on bases hosting U.S. forces and the embassy in Baghdad that Washington blames on Iran-backed militias.

The interior ministry of the autonomous Kurdistan regional government, based in Erbil, said in a statement the drone was carrying TNT which it used to target the U.S. forces. It said no one was hurt in the attack.

A group that Western and some Iraqi officials say is aligned with Iran praised the attack, but did not explicitly claim it.

A barrage of rockets hit the same U.S.-led military base in the Erbil International Airport vicinity in February, killing a non-American contractor working with the U.S. military.

Shortly before Wednesday’s attack in Erbil, at least two rockets landed on and near a base to the west of the city that hosts Turkish forces, Iraqi security officials said.

Sirens at the U.S. consulate in Erbil blared during the airport attack, witnesses said.

Turkey also has troops in Iraq both as part of a NATO contingent and a force that has attacked Kurdish separatist militants in the north.

The Iran-backed militias oppose both the presence of the United States and Turkey and demand a full withdrawal of all foreign troops.

The United States has sometimes responded with air strikes against Iran-aligned militias including on the Iraqi-Syrian border.

An air strike ordered by former president Donald Trump that killed Iran’s top commander Qassem Soleimani in January 2020 sent the region to the brink of a full-scale conflict.


Adjustment to the exchange rate

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On March 16, the Central Bank of Iraq explained in a statement, the reason for the decline in the exchange rate of the dollar in the parallel market - especially in February - from the official selling rate after the change of price by the Bank at the end of December 2020, and explained the central decline in what it called the "shock of the domestic market" which needed a period of adjustment to the adjustments that occurred between traders (wholesale, retail, singular) and wholesale settlements with banks, where imports declined to levels severe, and then lower demand for currency Foreign.".

However, this interpretation, based on the market mechanism, did not take into account the impact of the political space on this mechanism, as the apprehension of many of the public, including many traders and speculators, continued to escalate at other times and decline, according to statements and promises about influencing the central decision and the intention to undo it in favor of slogans, which were employed to win positions, without taking into account the nature of the variable that requires preparing for the flow of foreign investment and establishing an investment climate, led by allied capital of globalization capital in the region, which requires action on several axes. In order to achieve this trend, the exchange rate in the parallel market did not rise, until after the approval of the budget, and to ensure that the relevant authorities are continuing their policy irreversibly, to create a competitive environment that protects the local product from the low prices of goods produced in the countries of geographical neighboring and preparing for monetary stability, encourages foreign capital to enter the Iraqi arena in a security, legal and monetary atmosphere Stable.

But adjusting to the exchange rate will not take its attractive form of investment, except by liberalizing the exchange rate and creating monetary stability in an atmosphere of free exchange and trading to ensure the movement of capital to and from within Iraq, without any effect on the difference in the value of the exchange rate with currencies The other one.

To ensure investment accounts in feasibility studies developed by investors, they are keen in financial feasibility studies to ensure that the price in the parallel market does not change during the life of the project to achieve the feasibility of the establishment of the project, as well as the importance of competitiveness to protect the local product, which is likely to adopt the method of "managed float" in the next step in conjunction with the increase of central reserves, which will contribute to giving more freedom of maneuver to those in charge of monetary policy, and ensuring adjustment to parallel market fluctuations to reach for stability.


Ramadan breeds dread in crisis-hit Iraq

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Iraqis are bemoaning the rising cost of living as they stock up on food ahead of the fasting month of Ramadan during which families get together for iftar meals after sunset

 

Baghdad (AFP)

Faced with sharp price rises, a decline in the buying power of the dinar and rising unemployment, Iraqis enter the Muslim fasting month of Ramadan with a feeling of dread.

"After a whole day of fasting, we have to eat something," even if the price of a kilo of tomatoes has more than doubled, said Umm Hussein, a single mother of five who has no salary.

She struggles each month to raise the $45 rent for their modest home.

 

Like 16 million of Iraq's 40-million population living under the poverty line, Umm Hussein relies on her ration card for food.

Under the legacy from the 1990s when Iraq's Saddam Hussein was under a stringent international embargo, every Iraqi whose household heads earns less than $1,000 a month is entitled to certain basic provisions at subsidised prices.

But this year, "we've only received the rations for February", said Abu Seif, 36, who like his father before him has the job of distributing bags of subsidised goods.

"We still haven't got the rations for Ramadan," during which Muslims fast from sunrise to sunset, a period that starts this week.

Prime Minister Mustafa al-Kadhemi had promised extra rations for the holy month. But "people are coming in or calling every day to ask when they're arriving", said Abu Seif.

In Abu Ammar's grocery store, the credit line has been stretched so far that he fears not being able to pay his suppliers any more.

With prices rising sharply, "some families owe more than 200,000 dinars" ($130), the grocer told AFP.

The authorities in energy-rich Iraq, with revenues slashed by the decline in world oil prices, last year devalued the dinar, which has lost 25 percent of its value against the dollar.

As a result, for example, the price for a bottle of cooking oil has gone up to 2,500 dinars, from 1,500 dinars.

- No joking matter -

On top of price hikes, Covid-19 restrictions such as lockdowns and curfews have killed jobs, especially the day jobs on which many Iraqis rely following decades of conflict.

The UN Food and Agriculture Organization says Iraqis are trapped in a vicious circle.

"Over 90 percent of small and medium enterprises in the food and agriculture sector reported being severely to moderately affected by the pandemic. To cope with decreased revenue, more than 50 percent either let staff go or reduced salaries," it says.

A joke doing the rounds on Iraqi social media goes something like: "This year, salaries are in the group of death with Covid-19 and Eid al-Fitr (the feast marking the end of Ramadan). Not sure they will make it though to the next round."

Haider, a 32-year-old civil servant, says it's no laughing matter.

"Ramadan fills me with dread. We need a lot of things for the house and new clothes for the children," he said.

Even in normal times, he struggles to pay the rent, for daily expenses and electricity charges with his monthly salary of $600.

Electricity is one of the heaviest financial burdens, in a country with at times 20-hours-a-day power cuts that force Iraqis to turn to private generators that run on pricey fuel.

Abu Ahmad, a 32-year-old colleague, says he will skip the traditions this Ramadan.

"I'm not going to be giving big dinners at my place, so as not to spread Covid," he said. "But also, because I can't afford it."

Central Bank: The importance of international technical support to implement financial and economic reforms

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image.php?token=b1f1f0d0ccc196118a3d51ec

 

The Governor of the Central Bank of Iraq, Mustafa Ghaleb, stressed on Tuesday the importance of international technical support to implement financial and economic reforms in the White Paper.

In a statement received by the Tigris, the Central Bank said, "His governor met with a delegation from the French Development Agency (AFD), and the two parties discussed ways of joint cooperation."

The governor assured the delegation, "the importance of international technical support to implement the financial and economic reforms presented in the white paper, proposing a meeting between the French Development Agency and the private banking sector to define the area of ​​joint cooperation."

For its part, the French Development Agency expressed "its desire to establish a branch in Iraq to increase cooperation, as well as to provide loans for service and productive projects of the Iraqi government, and to provide financing for the public and private sectors."

It is reported that the French Development Agency (AFD) is a public institution for development financing that works to combat poverty and promote economic growth in developing countries.


The rise in the price of the dollar in the Kurdistan Region and Iraq

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The exchange rate of the dollar rose today, Tuesday, significantly, on the main stock exchange, Kurdistan Region, and the capital, Baghdad.

In the capital, Erbil, the dollar price witnessed a rise, as the selling price reached 150,000 dinars per hundred dollars, and the purchase was 149,500 dinars per hundred US dollars.

As for the central Al-Kifah and Al-Harithiyah Stock Exchange in Baghdad, it registered 149,300 Iraqi dinars for 100 US dollars.

While the Central Kifah Stock Exchange recorded 147800 Iraqi dinars during its opening this morning.

The selling and buying prices increased in the exchange shops in the local markets in Baghdad, where the selling price reached 150,000 Iraqi dinars, while the purchase prices reached 149,000 dinars per 100 US dollars.



The fluctuation of the Iraqi dinar and the fate of "the most vulnerable sectors of society"

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The value of the Iraqi dinar has decreased by more than 24 percent since last January

 

Muhammad Al-Wazzan, the owner of a large banking and remittance company, lost about $ 60,000, on Tuesday, after the Iraqi dinar’s exchange rate fell against the US dollar in the Baghdad markets, and lost about $ 12,000 more on Wednesday, when the dinar’s price rose slightly.

The value of the US dollar, on Tuesday and Wednesday, ranged between $ 1475 and $ 1495 against the Iraqi dinar.

Al-Wazzan says to Al-Hurra that the daily dealings he conducts are in the Iraqi currency and the dollar, and the variation in the exchange rate may lead to large losses, and it may also lead to profits "if you are lucky."

And luck, here, that you are in possession of an American currency more than the Iraqi one at the time of the high price of the dollar, and more Iraqi at the time of its decline, in order to benefit from the price difference between them.

Iraqi employees work at the Iraqi Stock Exchange in Baghdad on February 27, 2018. (Photo by AHMAD AL-RUBAYE / AFP)

 

Al-Wazzan says that only two of his 14 colleagues were lucky and made profits of twenty and twenty-five thousand dollars respectively.

In one day, the difference in the value of the Iraqi dinar against the dollar caused a difference of up to twenty million dinars (about 15 thousand dollars) for every million dollars exchanged. And if the numbers that Muhammad said were accurate, then this means that each of these traders conducts transactions with numbers exceeding one million dollars per day.

There are more than 100 large companies in Iraq, the size of the company supervised by Muhammad Al-Wazzan.

And economist Jassim Al-Muhanna says that "the dollar has risen in Iraq, driven by its global rise," adding that "this issue may be repeated, especially since the Iraqi Central Bank is trying to lift the subsidies on the currency rate."

Al-Muhanna expert warns that "the government's policy of partial floating of the dollar will make the fragile Iraqi consumer hostage to fluctuations in global markets, which affects his economic security severely."

But this rise "does not justify the impact of the Iraqi market," according to another economist, Ali Al-Asadi, who works as an appraiser in the Iraqi market for securities.

Al-Asadi says to Al-Hurra website that "the amount of cash in the Iraqi market is greatly affected by political decisions."

Al-Asadi says that this flow "came from a desire to buy goods in Iraq, whose real value decreased against the dollar. It also coincided with Kurdistan paying part of the salaries of its employees."

According to Al-Asadi, "The amount of the dollar in the market has decreased dramatically, and for this reason its price has increased. It is a simple form of supply and demand principles."

A member of the House of Representatives for the financial committee told Al-Hurra that the parliament and the government "are not considering taking new measures to control the exchange rate."

The member, who asked not to be named, added, "For the government, the decision to remove subsidies on the Iraqi dinar is successful, because there is money flowing into the treasury, and there is maximum benefit from the high oil prices, and the expenditures paid in dinars have decreased significantly."

Last March, the Central Bank of Iraq announced that "there is no return to the previous price of the dollar, and the price will not be reduced in any way," stressing that there is no intention to raise the price from 145 thousand per 100 dollars, which is the official Iraqi exchange rate.

Last January, the Central Bank of Iraq reduced the value of the Iraqi dinar against the dollar from 1180 dinars to the dollar to 1460 dinars.

Iraqi Prime Minister Mustafa Al-Kazemi said in March that "Iraq began to see the results of the decision" on the growth of cash reserves and on Iraq's international credit rating.

Nevertheless, the appreciation of the dollar is hitting the most vulnerable sectors of society.

Hajj Karim Obaid, an Iraqi retired, said, "His salary is barely enough to pay for the food."

The prices of basic foodstuffs doubled after the government devalued the dinar, while prices increased again on the occasion of Ramadan, before rising again due to the high price of the dollar.

The prices of some foodstuffs in Iraq increased by between 25 and 75 percent, as the price of one kilogram of sugar rose from 1,000 dinars to 1,300 dinars in the single market, a bottle of edible oil from 1500 to 3000, and grains from 500-750 to 1000-1500 dinars.

Egg prices increased from 4,500 dinars per class (24 eggs) to 6,500 dinars.

"The merchants are raising prices quickly, but they are reducing them slowly," Obeid told Al-Hurra. "I bought this bottle of oil for two thousand five hundred dinars, and I used to buy it for one thousand five hundred before the rise in the dollar price."


State of law indicates "the weakness of managing monetary policy in Iraq"

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The MP for the state of law, behind Abdel Samad, confirmed, on Wednesday, that the rise in the exchange rate of the dollar in the financial markets to a new record is a dangerous indicator that confirms the weakness of the management of monetary policy in the country and puts many question marks.

In a statement received by the Tigris, Abdul Samad said, "The gap created between the already high exchange rate and its market price means more high prices, and as a result, more economic difficulties for the poor and middle classes and those with limited incomes."

He added, "The repercussions of the wrong decision to raise the exchange rate and include it in the budget have eaten up with a significant increase in prices, indicating that the state of law adheres to its firm position on the necessity to return the exchange rate to what it was with the rise in the price of oil in global markets


SALEH DISCUSSES WITH ROUHANI EASING TENSIONS IN THE REGION

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Baghdad-Al-Sharqiya, April 14: Iraqi President Barham Salih made a phone call with his Iranian counterpart, Hassan Rouhani, during which he discussed developments in the region on the security and political level and ways to stabilize the region. A statement by the Presidency of the Republic stated that Saleh assured Rouhani the need to reduce tensions in the region and the commitment to dialogue and convergence in resolving outstanding issues and solidarity between countries in facing challenges, especially with regard to the Corona pandemic, and work to limit its economic repercussions.


Iraq: The World Bank called on us to raise the exchange rate of the dollar to 160,000 dinars

link   this is in Jordan's news  why are they reporting on the value of the dinar hmmmm?

Baghdad, April 13 (Petra) -Iraq announced today, Tuesday, that the World Bank proposed to amend the dollar exchange rate to 160 thousand dinars per 100 dollars, compared to neighboring countries.
The Deputy Governor of the Central Bank of Iraq, Ihssan Shamran Al-Yasiri, said in press statements that the World Bank and in negotiations to raise the exchange rate of the dollar against the value of the Iraqi dinar, they asked us to be 160 thousand dinars per 100 dollars. And Abizaid, but the Central Bank of Iraq, through its study of the market and the living situation, found that the current value of the exchange rate is 145 thousand suitable.
He added that this provided a competitive advantage of more than 23 percent against the importer of products, which had difficulty competing with the local product.
He pointed out that the Iraqi government could invest the initiative to adjust the exchange rate through more support for local industry and agriculture to encourage competition for Iraqi goods to foreign goods.





This is the daily WOTS "Word on the Street" report for Wednesday April 14, 2021

The Markets:
The Asian markets closed mixed NIK up by .44% HSI up by 1.42% SHANG down by .60%
The UK markets are currently trading in the green mostly from .15% to .35% OMX is down by .94% DAX down by .12%
Our futures are currently trading mixed  DOW at 33566 down  by .01% SNP at 4136.25 up by .08% NDX at 13995 up by .14%

Precious Metals:
Gold is red at 1744 Silver is red  at 25.42 Copper is green at 408 Platinum is green at 1181  
Brent 64 WTI  61   Bitcoin: 63,935 10 year yield:1.63



Favorite Currencies Forex Quotes

SymbolBidAskHighLowOpenChangeTime
 USD/IQD  1460.0000  1465.0000 1458.0000 1457.7000 1457.7000  0.5000 00:06
 USD/VND  23078.0000  23080.0000 23053.3000 23047.8800 23047.8800  7.5900 00:06
 USD/CNY  6.5308  6.5328 6.5434 6.5283 6.5424  -0.0125 05:21
 USD/KWD  0.3010  0.3020 0.3015 0.3012 0.3015  -0.0003 05:13
 GBP/USD  1.3773  1.3775 1.3808 1.3747 1.3748  0.0023 05:24
 USD/IRR  42000.0000  42210.0000 42097.5000 42097.5000 42097.5000  0.0000 00:00
 USD/IDR  14621.0000  14621.0000 14649.0000 14602.0000 14618.0000  4.0000 05:23
Things in the News:






Iraqi Articles:

Parliamentary committee: the budget will adopt a new way to deal with the 'petrodollar' clause

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The Parliamentary Oil and Energy Committee announced, on Wednesday, that the 2021 budget will adopt a new method regarding the "petrodollar" clause, as well as adding projects worth 1 trillion dinars to the oil-producing provinces.

Committee member Sadiq Al-Sulaiti said, in a statement to NRT Arabia (April 14, 2021), that "the issue of (petrodollars) in all budgets was mentioned that there are dues for oil-producing provinces, as well as provinces that contain refineries as part of the allocations of" petrodollars ", through sums For these provinces within their own investment plan.

Al-Sulaiti noted that "this issue is written in the budgets, but it is not applied, because the Ministry of Finance was citing the lack of financial revenues and the deficit in financing" petrodollar "projects remains.

Al-Sulaiti added that "the debts of the Ministry of Finance to the southern governorates amounted to more than 25 trillion dinars, according to the" petrodollar "clause, and this amount has not been paid yet. For the "petrodollars", by opening accounts on a monthly basis from oil revenues that are deducted from the "petrodollars" in order for these projects to be organized by the producing provinces according to their production quotas, and the amount is kept away from the disposal of the Ministry of Finance.

Al-Sulaiti added, "We hope that this step will help in finding investment service projects for these governorates, as they are worthy of them," stressing that "members of the House of Representatives are following up this issue with the Ministry of Finance in order to bring it into implementation as soon as possible." For oil, which is a very good amount that will give at least a push in the field of organizing service projects for these provinces, "noting that" the covered governorates are most of the southern provinces, as well as the central and Baghdad governorates.

They have done this before especially around these holidays

Foreign currency requests

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For the purposes of meeting the demands on foreign currency and for the purpose of achieving the goals of monetary policy and ensuring the stability of the exchange rate, the Central Bank of Iraq decided to increase the amount of cash sales of foreign currency to banks, exchange companies, and brokerage firms buying and selling foreign currency and fully meet it.
 
                The bank’s share of $ 200,000 per week
                The share of the Class A exchange company is     $ 1,500,000 per week
                Class B exchange company’s share of     $ 500,000 per week
                The share of the Class C exchange company is     $ 50,000 per week


Adjustment to the exchange rate

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On March 16, the Central Bank of Iraq explained in a statement, the reason for the decline in the exchange rate of the dollar in the parallel market - especially in February - from the official selling rate after the change of price by the Bank at the end of December 2020, and explained the central decline in what it called the "shock of the domestic market" which needed a period of adjustment to the adjustments that occurred between traders (wholesale, retail, singular) and wholesale settlements with banks, where imports declined to levels severe, and then lower demand for currency Foreign.".

However, this interpretation, based on the market mechanism, did not take into account the impact of the political space on this mechanism, as the apprehension of many of the public, including many traders and speculators, continued to escalate at other times and decline, according to statements and promises about influencing the central decision and the intention to undo it in favor of slogans, which were employed to win positions, without taking into account the nature of the variable that requires preparing for the flow of foreign investment and establishing an investment climate, led by allied capital of globalization capital in the region, which requires action on several axes. In order to achieve this trend, the exchange rate in the parallel market did not rise, until after the approval of the budget, and to ensure that the relevant authorities are continuing their policy irreversibly, to create a competitive environment that protects the local product from the low prices of goods produced in the countries of geographical neighboring and preparing for monetary stability, encourages foreign capital to enter the Iraqi arena in a security, legal and monetary atmosphere Stable.

But adjusting to the exchange rate will not take its attractive form of investment, except by liberalizing the exchange rate and creating monetary stability in an atmosphere of free exchange and trading to ensure the movement of capital to and from within Iraq, without any effect on the difference in the value of the exchange rate with currencies The other one.

To ensure investment accounts in feasibility studies developed by investors, they are keen in financial feasibility studies to ensure that the price in the parallel market does not change during the life of the project to achieve the feasibility of the establishment of the project, as well as the importance of competitiveness to protect the local product, which is likely to adopt the method of "managed float" in the next step in conjunction with the increase of central reserves, which will contribute to giving more freedom of maneuver to those in charge of monetary policy, and ensuring adjustment to parallel market fluctuations to reach for stability.


The decision to devalue the currency between the data and the problems

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The Iraqi Media Network Center for Strategic Studies and Research organized an open dialogue seminar bearing the slogan “The Dinar, the Dollar, and the Challenges of the Economy”. It was characterized by a frank presentation in the presence of economists in the public and private sectors. Timing of the decision. 
Deputy Governor of the Central Bank, Ihssan Al-Shamran, said: “The issue of devaluation of the national currency has a big difference in viewpoints, and this conflict is between two issues, the first is the citizen’s interest and the citizen’s low purchasing power, due to the decision to reduce by 22 percent, while the second issue is the interest of the national economy, which Adopted by the Central and the Ministry of Finance. 
 
Work and production
Al-Shamran pointed out that «the Iraqi market is full of foreign goods, and the reduction decision came to encourage the national product, and to rely on tools, including the reduction decision, which encourages the agricultural sectors first and the industrial sectors secondly to work and produce, and that the decision came out of the primacy of the national interest over the public interest. Indicating that «the local market is affected and stopped, but it will return to the rise». 
 He emphasized that "the International Monetary Fund advised that the exchange rate be 1600 dinars against the dollar."
 
The identity of the economy
The head of the Board of Trustees of the Iraqi Media Network, Jaafar Alwanan, indicated that «the Iraqi economy suffers from the problem of not having a special identity, and this makes the visions of the labor market blurry», describing «the large jumps in the exchange rate are incorrect, and that the change will eliminate the presence of a middle class in society, Either poor or rich, and that the economy must be employed to serve the country and the citizen, and the next requires that we know how to create an identity for the economy? ”
And the importance of "giving economists the opportunity to participate in economic decision-making, which activates investment and industrial and agricultural production, and takes care of preserving the family economy with limited income."
 
State Treasury
Economic advisor Hazem Hadi Al-Saadi said: “The economic decision that has an impact on the life of society must be studied well from all sides,” indicating that “the decision to reduce the currency came with great positive results, as it contributed to raising the reserves of the Central Bank of Iraq, and achieved An increase to the state treasury by 10 trillion, and it will contribute to providing cash to the Ministry of Finance. 
Al-Saadi said that "from an economic point of view, it will contribute significantly to revitalizing the private sector and reduce poverty rates." 
 
reaction
Adviser to the Institute for Economic Reform d. Hussein Al-Khaqani stated that "the decision was not wrong and aimed at achieving a better situation. Nevertheless, there were voices calling for the return of the old price, but it would have been more appropriate to gradually devalue the currency," noting that "the 22 percent reduction caused a reaction within the local market." "It led to a recession due to high prices, especially as it will help protect the national product and strengthen the industrial base." 
 
Fragility of the economy
The industrial consultant Amer Al-Jawahry stated that it is "better for the concerned institutions to discuss such a decision with the private sector, experts and those concerned in economic affairs, and this requires that it be in all economic decisions, and that the repercussions of the economic decision revealed the fragility of the economic situation in the country", calling for "Work to find effective economic, industrial, agricultural and tourism initiatives that work in a real way to activate the national economy." 
 
The real value
The industrial expert, Abdul Hussein Al-Shammari, said that “the decision to reduce the value of the dinar reflects the real value of the national currency, and after this procedure we have to go to support the citizen, especially on the issue of the ration card, and it is preferable to spend money on the citizen, to go to the local market and buy what he needs, This removes the card from all forms of corruption ».
He pointed out that the decision contributed to encouraging the start of the implementation of industrial projects in the various regions of the country, and here it is necessary to benefit from international experiences by granting industrial and agricultural dollars and to be sold at subsidized prices for this segment, to encourage the establishment of productive projects in the industrial and agricultural sectors, and that this coincides with Establishing strategic industrial zones that support production trends. 
 
National product
Economist Abd al-Rahman al-Ashikhli described the decision as correct, but the country does not have an integrated economic base that harmonizes with such a decision and promotes production, and protects the national product from any external competition. We can say academically that the decision is correct, but in reality it is not correct ». 
He pointed out that "the currency auction returned strongly and touched during the last two days the barrier of 190 million dollars in sales, and may reach 300 million during the coming period." 
 
Negative effects
An advisor in the office of the Prime Minister, Nuri Al-Enezi, said, “He asked what the decision to devalue the currency to the citizen achieved? Although the reduction is required for years, provided that it is conditional on ensuring food and drug security, and there is no complication in the issue of securing food and medicine, although their allocation is not large and secure, as the ration card is allocated 6 billion dollars and medicine is 2 billion dollars annually, and here it is necessary. The work is towards securing food and medicine, and then moving towards the reduction decision, which should not leave negative impacts on the citizen’s life. 
 
The Chinese experience
Head of the Iraqi Merchants Association, Sabah Al-Baghdadi stated that “the reduction decision is correct, but we must benefit from global experiences that preceded us in this field, including the Chinese experience that devalued its currency amidst society’s knowledge and alerted that, and put financial flows to the market, to prevent any challenges facing the local market », Indicating that« our decision to cut came in the manner of shock that left clear repercussions on the local market, and that the market suffers from stagnation and selling is without profits », calling on the Central Bank of Iraq to adopt a plan to move the local market.
  
Effective treatments
Economic specialist Bashir Al-Saadi said: “The economy can be described as a patient who needs diagnosis and analysis, and then treatment is prescribed, and we need a longer time to describe effective treatments that can change the shape of the national economy and move it to a better stage,” pointing out that “several projects In Iraq, including the strategy, it can advance the national economy, and curbing commodity dumping is an imperative ». 
 
Price increase
Academy d. Rabab assured that "the decision to devalue the currency is correct, but what is the benefit of it when it is combined with customs exemptions for some countries, and the decision led to an increase in prices more than the reduction rates. In fact, there are commodities whose price has doubled." 
Economic academic Abd al-Rahman al-Mashhadani said: “I stand against the decision as a whole, because control over the borders has not been completed, and we do not have a database of the reality of the Iraqi economy as a whole

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

The currency auction For April 14th , 2021 total sales amount $199,619,000

including   $ 13,050,000.00 CASH 

ISX Update:   

www.isx-iq.net/

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

4-14-2021   Intel Guru MarkZ   [via PDK]   No movement yet on the RV front…paymasters are still in place and they are prepared.   [do we need a paymaster?]  A paymaster is a like an attorney at a house closing. They take a large amount of funds...they make sure all fees are paid…all interested parties are paid…and everything is settled…We do not need a paymaster. As we understand our Tier 1 banks will act as a paymaster…they will distribute to us, make sure all fees are paid, covered and done.
4-13-2021   Intel Guru MarkZ   [via PDK]  There is no bad news. As I have been told by many folks…yes…everything is ready…they are waiting on somebody to flip the switch.  [This is emotionally exhausting.]    It is emotionally exhausting. I share the frustration and exhaustion with you.  [It will never be perfect…at some point they just have to let go.] I agree with you. Many people I know up the chain agree with you…with the QFS I think it’s as good as it’s going to get. They say we need to pull the trigger…I agree with them...  

4-13-2021   Intel Guru Frank26    Article:  [Adapt to the exchange rate]  Quote: 'to adopt the method of "flotation" Al-Madar - in the next step, in conjunction with the increase in the central reserves...'  You now understand - Phase One: Solid date 1 to 1 fixed rate.  Phase Two:  Bring in enough zeros...and we will give you [CBI] the opportunity to raise the value again.  How about $1.19 or $1.46?  Outside of the country the same thing is happening.  Strengths and stability is being added to your currency...because of the investors...they recognize that Iraq now qualifies for the international rate of their currency.  When it enters Phase Three: Maybe 6,7,8 months later as it floats...that's the next step after we do phase 1 and 2...these phases are upon us.

4-13-2021   Intel Guru MarkZ   [via PDK]   [What’s your predecition?]  My best guess is “anyday” could be today…could be tomorrow …could be a week…we simply do not know.   [Do you think we will have it in April?]  I thought we would have in March. But yes I think we will see it in April.  I did speak to one redemption center contact who said they will be on call this weekend.  The chatter out of Iraq is still exceptionally good...more statements from the finance minister over there saying they will soon have the best currency in the region.

4-13-2021   Intel Guru Frank26   The goal is to change the rate again.  These articles are coming out and they're saying 'we're changing the rate of the American dollar.  No.  The CBI has no authority to do anything with the exchange rate - only the U.S. Treasury...not understanding the translation properly really applies to these articles.  That's why they get you depressed and confused...they are talking about the exchange rate of the Iraqi dinar AGAINST the American dollar...that's the only way they can talk about it...these articles are not saying they're going to decrease the value [of the dinar]...
 
4-13-2021   Newshound Guru MilitiaMan  They (Parliament) are clearly stating the 2021 budget has been approved to price oil in dinars now.  The PM states the 2021 budget is financing the the Port of Faw project in the billions. To price oil in dinars is only possible with an exchange rate change, imo. Whereby, if the deletion of the zeroes is to happen, then it would make sense, as there are not enough dinars in existence to do so in dinars.  With an approximate 4 million barrels of oil a day at say $65.00 brl is upwards of 379.6 billion dinars a day... Nope not going to happen imo... Drop the 3 zeros and that can happen... And hence the projects cornerstones are being put in place today. imo.

4-13-2021   Newshound Guru Kaperoni   ...The dinar exchange rate is the dinar exchange rate.  The word..."program rate"...was taken from IMF consultations with Iraq that referred to agreements...it is not some temporary exchange rate in anticipation of some significant other rate or RV...


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 holds a regular session headed by the Prime Minister, Mr. Mustafa Al-Kazemi

Prime Minister Mustafa Al-Kazemi chaired today, Tuesday, a regular session of the Council of Ministers, in which the latest developments in the country were discussed, and the topics included in the agenda were discussed.

At the beginning of the meeting, the Prime Minister offered his congratulations to the Iraqi people on the occasion of the blessed month of Ramadan, and that this blessed month would be an opportunity for love and tolerance, and that state institutions would double all their efforts in order to serve the citizen and meet his needs.

His Excellency stated that following up the issues and needs of citizens and easing bureaucratic procedures is one of the priorities of government work, calling on the ministers to make maximum efforts to provide these needs.

Mr. Al-Kazemi stated that the government came to serve the citizens and face the great challenges facing the country and not for a political goal, and that it succeeded in areas while others need increased follow-up and work, and in this regard, his sovereignty affirmed the success of the reform measures undertaken by the government, some of which contributed to the increase in reserves. The central bank of the dollar.

The Prime Minister renewed his directives to the Ministry of Trade to work continuously to provide more foodstuffs in the ration card, and to work with all its energy to achieve this matter. His Excellency referred to the increase in the prices of some commodities, and stressed that most of them are linked to the greed of some merchants and we have campaigns to prevent this manipulation. At prices.

Mr. Al-Kazemi referred to the efforts of the Ministry of Health in providing vaccines against the Coronavirus, stressing the importance of encouraging citizens and urging them to receive the vaccine.

The Minister of Health and Environment also presented a detailed report on the developments of the work of the Committee to Strengthen Governmental Measures in the areas of prevention and control of health and awareness regarding limiting the spread of Coronavirus, and reviewed the Ministry's efforts in the vaccination campaigns that it carries out in the capital, Baghdad and all governorates.

After the Council of Ministers discussed the topics on its agenda, it issued a number of decisions, including:

First / The two companies (Al Mafakher Commercial and Export Agencies Limited Liability and Al Bashaer Commercial Limited) are considered dissolved according to the law, and the proceeds of the liquidation of the two aforementioned companies and their funds go to the Ministry of Finance.

Second / Approval of the issuance of the system of the first amendment to the system of parents and teachers councils No. (1) for the year 1994, based on the provisions of clause (third) of Article (80) of the constitution, taking into consideration the observations of the legal department in the General Secretariat of the Council of Ministers.

Media Office of the Prime Minister
April 13-20

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ARTICLE 2-A (from Government of Iraq twitter account)

Minister of Youth and Sports @ADarjal: The Cabinet congratulated the Athletics Federation for winning first place in Iran's International Championship. We have coordinated with the Ministry of Health to establish a schedule for giving athletes the Covid-19 vaccine.
Minister of Youth and Sports @ADarjal: The Gulf Committee will make its final decision on the 25th Arabian Gulf Cup on 26 April. The Gulf delegation expressed its happiness in the @IraqiGovt’s interest in hosting the event.

Minister of Transport Nasser Hussain Al-Shibli: The Korean company has completed the eastern breakwater with a length of 8 km. The western breakwater is 16 km & is the longest in the world & entered the Guinness Book of Records.

Minister of Transportation Nasser Hussain Al-Shibli: Its depth will be more than 19 metres in agreement with the implementing company. The cost of the Al-Faw port is $2.625 billion US, with a completion period of 3.5 years

Minister of Transportation Nasser Hussain Al-Shibli: Al-Faw port is an important economic project that will save Iraq & supplement its budget. It is a strategic project that will link the east with the west, and it will be able to receive large ships.
Cabinet spokesperson: The Minister of Health @TemimiHassan provided information about the increase in vaccination numbers for #Covid-19.We received several types of vaccines and we noticed citizens' demand for taking them.
Cabinet spokesperson: Prime Minister @MAKadhimi recommended the Ministry of Trade distribute the additional social assistance food basket for the holy month of #Ramadan
.

Cabinet Spokesperson, the Minister of Culture @HassanNadhem, and the Minister of Transportation Nasser Hussain Al-Shibli and Minister of Youth and Sports @ADarjal hold a press conference in Baghdad to brief the media on today’s Cabinet meeting and developments in Iraq.
ARTICLE 2-B (from Government of Iraq twitter account; posted only on Arabic side, not on English side)

Congratulation

I present to our honorable Iraqi people, in its name to the entire Islamic nation, and to those who love good and peace everywhere, with my sincere wishes and the deepest good hopes on the occasion of the holy month of Ramadan. Al-Bari, the Almighty, made it a month of obedience, acceptance, and bestowal of his mercy on the worlds.

On the advent of these blessed days, I call on all the sons of our patient and proud people to make this holy month an occasion for friendship, transcendence and unity, and a meeting on the love and elevation of Iraq.

I am confident that the near future will be the radiance of progress, filled with good and generous life, with work, brotherhood, self-sacrifice, and giving priority to the interest of our dear Iraq.
Happy New Year, Iraq

Mustafa Al-Kazemi
Prime Minister
April 13, 2021

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ARTICLE 2-C (from Government of Iraq twitter account)

Covid-19: Iraqi government amends curfew hours, announces other measures

 13 Apr 2021 - 12:18 pm

1- A partial curfew will be implemented during the blessed month of Ramadan from 20:00 to 05:00 the following morning for the first three weeks of Ramadan, while allowing restaurants to provide delivery service.

 

2- A full curfew on Fridays and Saturdays every week. Exempt are pharmacies, food marts, fruit and vegetable stands, and bakeries, and allowing them to carry out their work until 19:00, and allowing restaurants to provide delivery service.

 

3- Enforcing measures by health control teams and the security forces, and holding violators accountable.

 

4-Directing health departments to ask their employees in hospitals and health centres to provide proof that employees are Covid-19 negative through PCR examination results, with tests being conducted within a week or providing proof of their inoculation with a Covid-19 vaccine, to allow them to work starting 1 May 2021. Directors of health institutions will be held legally responsible for implementing and following up these procedures.

 

5- Conducting PCR tests on all patients and their caregivers if they are unable to provide a certificate of  inoculation against Covid-19.

 

6- Starting 1 May 2021, those employed in retail stores, restaurants, malls, factories and other places of business subject to health control measures will require inoculation. Health permits for the aforementioned businesses will be conditional on providing proof of inoculation of all staff. Following this date, businessowners will be held accountable and subject to fines if any employee cannot provide evidence that:

 

  • The employee has been inoculated with a Covid-19 vaccine.
  • Those who are unable to be inoculated such as pregnant women and other contraindications, or those who can provide evidence that they contracted Covid-19 during the last three months, by providing a positive PCR test or CT-scan will need to provide proof of a negative PCR test taken within the most recent week.
  • Ministry of Health monitoring authorities, with the support of the security forces, must hold accountable violators of these health measure in accordance with the Public Health Law and the decisions of the Higher Committee for Heath and National Safety.

 

7- Starting 1 May 2021 staff working in pharmacies, drug stores, laboratories and private clinics, including radiology clinics, and private hospitals will not be allowed to work if:

 

  • They cannot provide evidence that they are Covid-19 negative through a negative PCR test conducted within the most recent week.
  • There cannot provide evidence of being inoculated with the Covid-19 vaccine.
  • Ministry of Health inspectors and the relevant associations (Doctors’ Syndicate, Dentists’ Syndicate, Pharmacists’ Syndicate) will enforce the implementation of the above and hold violators accountable and closing the practice of violators in accordance with the laws and regulations in force.

 

8-  Citizens will not be allowed entrance into ministries and government agencies of a crowded nature  (pension department, traffic directorates, passport directorates, civil and national status directorates, etc.), as well as not allowing employees of the aforementioned to work starting from 20 April 2021, in case of:

 

  • They cannot provide evidence that they are Covid-19 negative through a negative PCR test conducted within the most recent week.
  • There cannot provide evidence of being inoculated with the Covid-19 vaccine.
  • All government entities not associated with a ministry and all governorates are responsible for implementing the procedures and following up with their employees and considering any violating employee in absent without payment.

 

9- Sports clubs will not allow the presence of any of the players unless they present their inoculation card for the Covid-19 vaccine.

 

10- The Ministries of Education, Higher Education and Scientific Research, and Health will coordinate regarding conducting campaigns to vaccinate the covered groups of faculty and students.

 

11- The Hajj and Umrah Authority will not register any of the citizens wishing to perform the Umrah and Hajj pilgrimages unless it is proven that s/he has obtained the inoculation card with the Covid-19 vaccine.

 

12- Urging all government entities not associated with a ministry and all governorates to direct their employees to be inoculated with a Covid-19 vaccine.

 

13- Calling upon community leaders, students of religious sciences, tribal sheikhs, intellectuals, activists and media professionals to take their national and moral responsibility in raising awareness and not to stand watching in light of the continuing dangerous epidemiological situation.

 

14- Calling upon all media outlets, governmental and private institutions, and civil society organisations to make efforts to urge citizens to adhere to preventive measures, and to encourage citizens to take the vaccine in health centres and accredited hospitals.

 

15- Putting into force the application of the provisions of Article 240 of Penal Code No. 111 of 1969, as amended, related to violating orders and regulations, and authorizing the security forces in support of health teams and their application against citizens in violation in the event that they fail to pay fines.

 

16- The Joint Operations Command, Baghdad Operations Command, the Ministry of Interior, and the National Security Agency will continue to support health teams in their inspections and follow-up on the implementation of preventive measures in public places, restaurants, shopping malls, cafes and others during and outside of official working hours.

 

17- Reducing working hours in public departments and institutions by one hour during the holy month of Ramadan.



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ARTICLE 3

Barzani and Bahr al-Ulum are discussing consolidating a culture of coexistence and resolving the disputed files with Baghdad

4/13/2021 15:57

[Erbil-Where] The
Prime Minister of the Kurdistan Regional Government, Masrour Barzani, discussed a delegation from the [Bahr Al-Ulum] Dialogue Forum headed by Ibrahim Bahr Al-Ulum, the importance of promoting and consolidating a culture of coexistence and adopting the principles of dialogue in resolving disputes.
Barzani stressed during the meeting that "the Kurdistan Region is looking forward to permanently resolving the controversial files between it and the federal government through dialogue and negotiation in a fundamental way and according to the foundations of the constitution."
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ARTICLE 4

Judgment on the political spokesman for Muqtada al-Sadr

4/13/2021 15:17 • 
[Baghdad-Where]
A judicial source said on Tuesday that a series of court rulings had been issued against Jaafar al-Mousawi, the political spokesman for the leader of the Sadrist movement, Muqtada al-Sadr, after he was convicted of graft.
The source said that the verdict was issued against Al-Mousawi, who also holds the position of head of the political body of the movement, to imprisonment for a period of one year suspended.

The source pointed out that the Iraqi judiciary imposed a fine of 10 million dinars with the confiscation of Al-Mousawi's property for illegal gain.
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ARTICLE 5

A summon order was issued against Rakan al-Jubouri and a number of government officials in Kirkuk

4/13/2021 15:27 • 
[Kirkuk-Where] An
informed source in Kirkuk governorate said on Tuesday, that recruitment orders had been issued against the current governor and a number of local officials on charges of harming public money.
The source said that the judiciary issued recruitment orders against the governor of Kirkuk, Rakan al-Jubouri, the director of the government contracts department, Ahmad Matar Abd, the director of the general planning department, Saddam Hussein Habib, the director of the engineering department, Fatima Haider Muhammad, and the former director of the accounts department, Othman Muhammad Qarman, in the provincial office. According to Article 340 of the Iraqi Penal Code.

And he indicated that the recruitment comes against the background of irregularities in furnishing the new governorate building, waiting lounges, and delivering electricity.

Article 340 of the Iraqi Penal Code stipulates that "every employee or person charged with a public service who intentionally causes harm to the money or interests of the entity in which he works or is connected to by virtue of his position or the money of persons entrusted to him shall be punished by imprisonment for a period not exceeding seven years or with imprisonment."
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