WOTS THU JUN 24 21 Moves to delete three zeros from the currency to strengthen the dinar
These are the articles that I discussed on the My FX Buddies Podcast
Economist Mahmoud Dagher to the Tigris: The majority of depositors of their wealth will adopt the dollar in their transactions
Dagher to the Tigris: The Ministry of Finance dominates all policies under the pretext of the white paper, and this is not in the interest of Iraq
Economist Mahmoud Dagher to the Tigris: The majority of depositors of their wealth will adopt the dollar in their transactions
Dijla satellite channel
Al-Mashhadani to Dijla: Most of the advisory staff at the Ministry of Finance are engineers and are not specialized in economics
Dijla satellite channel
Economic expert Abdul Rahman Al-Mashhadani to the Tigris: Oil revenues may cover the state’s expenditures for the month of June
Al-Mashhadani to the Tigris: We have only 1,227 ATMs in Iraq, and this is not commensurate with the number of employees
Dijla satellite channel
The financial crisis worsens the living situation of citizens amid faltering reforms.. see details tv show
Analysis - Baghdad-Erbil controversial funding agreement: What does Al-Kadhimi seek?
In a controversial decision that drew opposition from finance minister, the Iraqi government decided on June 16 to pay $200 billion dinars ($14 million) monthly to the Kurdish Regional Government (KRG) to finance payments to state workers in the autonomous region. The decision was put to vote at a government meeting and the ministers unanimously approved the funding.
AhlulBayt News Agency (ABNA): In a controversial decision that drew opposition from finance minister, the Iraqi government decided on June 16 to pay $200 billion dinars ($14 million) monthly to the Kurdish Regional Government (KRG) to finance payments to state workers in the autonomous region. The decision was put to vote at a government meeting and the ministers unanimously approved the funding. According to the government, the payment will be considered since the first day of the first month of this year and will be made to Erbil, meaning that Baghdad has to pay 1.2 trillion dinars as employee salaries to the KRG.
The decision was made as the budget has been a contentious issue between Erbil and Baghdad since 2013. It has triggered massive opposition from various political circles. But what is the reason behind the opposition and why has al-Kadhimi made such a decision in the current conditions?
Ongoing dispute over adherence to agreement on the oil and budget
In analyzing the massive objection to the government decision, it must be taken into account that it has roots in the Kurdish dispute with the central government over budget and oil. Over the past years, Erbil leaders insisted that the central government should provide the employees payment budget. On the opposite side, Baghdad pressed for supervision over the Kurdish oil sales. Both accuse each other of failing to keep commitment.
But in the new conditions, after the world oil price rose to more than $70 a barrel, Erbil has gained a large or maximum part of the budget needed to pay employees, and with 200 billion dinars sent by the central government, now the income of the KRG reaches more than 1 trillion dinars, which is over 100 billion dinars more than the budget needed to pay full salaries to employees. Here is a list of the KRG monthly incomes after new budget is sent to Erbil: 200 billion dinars paid by Baghdad, $450 billion earned from oil sales, 350 billion internal incomes, and 25 billion dinar in aids from the "global coalition." All these sums make a total of 1,025 billion dinars, while the budget needed for the salaries is 894 billion dinars. So, there would be a 130 billion surplus.
Some Iraqi political parties have expressed dissatisfaction with the government plan and even threatened to impeach Prime Minister Mustafa al-Kadhimi. For example, Hassan Salem, the head of Fatah coalition in the parliament in a statement said paying 200 billion dinars monthly "ex post facto" is an open violation of the constitution and the 2021 budget law, according to which the two sides should commit to their promises.
"To prevent waste of the public budget, we would take legal actions. The attorney general should prevent this payment to the Kurdish region. The prime minister should be impeached for not committing to the constitution," he was quoted as saying.
Also, Burhanuddin Ishaq, a senior member of the Babilioun Movement, said that the Iraqi cabinet's decision to pay 200 billion dinars a month to the Kurdish region ex post facto from the beginning of this year, without the Erbil government complying with its obligations in the budget law, violates the Iraqi constitution and other ordinary laws.
"The reason for that is lack of political will to pass oil and gas law to regulate the revenues of sales of energy resources," he added.
It seems that the decision will stir further opposition and increase the tension between the Kurds and the central government to new heights.
Al-Kadhimi’s election goals
The future elections, scheduled for October 10, also make a reason for this al-Kadhimi's decision. The fact is that al-Kadhimi is trying to secure Kurdish seats in parliament in the run-up to this election. This means that he can now secure about 60 purely Kurdish parliamentary seats. He is well aware that the vast majority of Kurdish parties will welcome Baghdad sending funds to pay the salaries of region's workers, and that his recent decision could spur Kurdish support for his reelection.
Also, it seems that he intends to coalesce with Muqtada al-Sadr, the head of Saerun coalition, and Masoud Barzani, the head of the Kurdish Democratic Party, to retain his premiership, as the two parties are rumored to have plans for a coalition. Therefore, it can be concluded that the funding plan has election goals and helps an alliance between him and the two political leaders.
Reuters: U.S. Agrees To Lift Iran Oil Sanctions
The United States has agreed to lift all sanctions on the Iranian oil and shipping industry and to remove several senior officials from a blacklist, Reuters has reported, citing the chief of staff of outgoing President Hassan Rouhani.
"An agreement has been reached to remove all insurance, oil and shipping sanctions that were imposed by (former U.S. President Donald) Trump," Mahmoud Vaezi said, as carried by Iranian state media.
"About 1,040 Trump-era sanctions will be lifted under the agreement. It was also agreed to lift some sanctions on individuals and members of the supreme leader's inner circle," the official added.
However, based on comments from the Western powers participating in the negotiations, the finalization of the new nuclear deal between Tehran and Washington is yet to be reached.
The Reuters report comes on the heels of news that suggested reaching an agreement had just become harder: the U.S. blocked about three dozen Iranian websites, Bloomberg reported earlier today, citing the Department of Justice. The DoJ said the move was made in response to "brazen attempts" on the part of Iran to spread disinformation and mislead Americans.
In response, Iran said the move was "not constructive" in the context of the nuclear talks.
"We are using all international and legal means to... condemn... this mistaken policy of the United States," Mahmoud Vaezi said, as quoted by AFP. "It appears not constructive when talks for a deal on the nuclear issue are under way."
Oil prices have yet to react to these mixed signals, although the report about removing oil sanctions is bound to push benchmarks higher.
Iran, meanwhile, is preparing to return to the international oil markets. In May, Bloomberg reported data that Iran had some 69 million barrels in floating storage, ready to be dispatched to buyers when sanctions were lifted.
This week, state news agency Shana said that the Iranian Offshore Oil Company (IOOC) had started production from a new well at the Abuzar offshore field.
THere is a great image but I can't copy and paste it here though
Global report: Huge investment opportunities in Iraq despite corruption and bureaucracy
The International Investment Monitor newspaper, concerned with investment affairs, reported, Wednesday, June 23, 2021, that .Iraq has enormous opportunities for investors who bear risks The continuation of Covid-19 contributed to the destruction of Iraq's economy, in addition to the war against terrorist organizations, but it is still .struggling
The World Bank estimates the reconstruction needs at $88 billion
Attracting foreign direct investment is a key factor in the reconstruction of the country, especially in light of the lack of domestic financing. However, the .investment climate in Iraq is attractive only to investors who have the highest degree of risk tolerance .
The World Bank took the lead in rebuilding the country, with $355 million allocated for the Iraq Transport Corridors Project
Iraq is also looking to start work on an elevated metro system for Baghdad in the second quarter of 2022 in addition to a contract to rebuild Mosul .Airport In 2020, the Iraqi electricity sector agreed to contacts with General Electric and Siemens to modernize power plants and the transmission network in .Iraq .
John Menzies, the London-listed airport services company, won in 2020, a very positive sign for foreign investors Corruption, institutional weakness, persistent security concerns, and onerous bureaucracy appear to be just some of the major impediments to .investment in Iraq, a war-torn country whose peace remains fragile with two million people still displaced from the ISIS conflict .
However, investors who have an appetite for the markets will discover the opportunity to participate in the renaissance of Iraq .The agri-food sector in Iraq is one of the few sectors of the economy, and represents a fertile place for investment in the non-oil scene in Iraq
Moves to delete three zeros from the currency to strengthen the dinar
link you should click the link and watch the video
There is a video with this article but it is all in Arabic
Moves to delete three zeros from the currency to strengthen the dinar in an attempt that economists find difficult to verify with the continued dependence on oil
A number of proposals were recently put forward to address the economic deterioration it is going through Iraq, Among them comes the deletion of zeros from the currency, a step that many find difficult to verify in light of the continued dependence on oil as the only economic resource, as well as the high exchange rates of the dollar against the dinar
After the deterioration of the Iraqi dinar, and the depreciation of its exchange rate against the dollar, there is a lot of talk about several proposals to address the problem.. The most prominent of these proposals is the possibility of deleting three zeros from the local currency, but this step is seen by many as unverifiable, especially with the country's continued dependence on oil as an economic resource Single
What increases the difficulty of implementing such a step is the presence of a number of problems that still exist, represented by the sluggish application of paragraphs in the budget, and the increase in the poverty rate, to complete the knot in the continuous rise in the exchange rates of the dollar against the decline of the dinar.
The economic downturn Iraq It is not the result of the moment, but it started since the oil boom five decades ago, when the state relied on oil rents, and neglected the traditional basic sectors of the economy, namely industry, agriculture and tourism, so any plan to strengthen the economy and support the currency can only be achieved by developing these sectors.
Iraq breaks an agreement with a Chinese company: We are in a better position and making additional profits
Iraq canceled a paid agreement with a major country, describing the measure as necessary to achieve the country's interest and .revive the budget
And according to a statement published by the S&P GLOBAL PLATTS website, Wednesday, June 23, 2021, “Iraq has a paid oil supply agreement worth two billion dollars with the (Zhenhua Oil) company of the Chinese government, and sold the crude oil designated for the deal to other customers, as .Baghdad seeks to benefit from the high Prices," a senior Iraqi official told the site
The site stated, "The Iraqi State Oil Marketing Organization, earlier this year, chose the company (Zinhua) to be the winning bidder for the agreement, ".which included an advance payment of $2 billion for a period of one year, and called for providing 4 million barrels of crude every month
And the site quoted the deputy director of the "SOMO" company, "This agreement is not applicable at this stage due to high oil prices, we are in a better ".position and we are achieving additional profits that exceed what the Iraqi budget needs
For his part, a Beijing-based source familiar with the matter confirmed that "Zinhua and Sumo ended the deal," noting that "the previous contracts of ".Zinhua for Iraqi crude were not affected
In the same context, the site quoted an Iraqi official as saying, "We have a good and even perfect working relationship with our Chinese customers, ".including Xinhua. They understand our position
He added, "We have current business ideas in general to increase the presence of SOMO and the presence of Iraq's crude in the Chinese market and Asia in general," noting that "this may include storage capacities, commercial activities or facilitating commercial activities in the same market, and even .from there in China we can sell our crude." and engage in other products business .
SOMO) is in discussions with companies in Asia, including China, to store Iraqi crude there( .
Last May, Iraq was China's third largest oil exporter, after Saudi Arabia and Russia, while India and China are described as the largest Iraqi oil markets
Below here is the daily WOTS report "Word on the Street":
The dollar exchange rates in the local markets for Thursday, (June 24, 2021), according to specialists' monitoring.
Baghdad - Stock Exchange of struggle الكف
147,300
Exchange rate (approximate)
146,750
147,750
————————————————-
Erbil / Bursa
147,650
———————————
Basra / Bursa
147,500
-——————————-
Mosul / Bursa
147,600
Favorite Currencies Forex Quotes
| Symbol | Bid | Ask | High | Low | Open | Change | Time |
|---|---|---|---|---|---|---|---|
| USD/IQD |  1436.4000 |  1486.7000 | 1457.3000 | 1457.0000 | 1457.0000 | 0.1000 | 09:37 |
| USD/VND | 23003.0000 | 23008.0000 | 22998.6500 | 22997.7900 | 22997.7900 | 1.0400 | 00:00 |
| USD/CNY | 6.4655 | 6.4675 | 6.4810 | 6.4658 | 6.4729 | -0.0072 | 05:21 |
| USD/KWD | 0.3006 | 0.3016 | 0.3008 | 0.3006 | 0.3008 | -0.0001 | 05:07 |
| GBP/USD |  1.3968 | 1.3968 | 1.3986 | 1.3949 | 1.3959 | 0.0008 | 05:23 |
| USD/IRR | 42000.0000 | 42210.0000 | 42097.5000 | 42097.5000 | 42097.5000 | 0.0000 | 00:00 |
| USD/IDR | 14435.0000 | 14442.0000 | 14469.0000 | 14411.0000 | 14423.0000 | 10.0000 | 05:22 |
Top 1% of Americans have 16 times more wealth than bottom 50%!
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Global report: Huge investment opportunities in Iraq despite corruption and bureaucracy
The International Investment Monitor newspaper, concerned with investment affairs, reported, Wednesday, June 23, 2021, that .Iraq has enormous opportunities for investors who bear risks The continuation of Covid-19 contributed to the destruction of Iraq's economy, in addition to the war against terrorist organizations, but it is still .struggling
The World Bank estimates the reconstruction needs at $88 billion
Attracting foreign direct investment is a key factor in the reconstruction of the country, especially in light of the lack of domestic financing. However, the .investment climate in Iraq is attractive only to investors who have the highest degree of risk tolerance .
The World Bank took the lead in rebuilding the country, with $355 million allocated for the Iraq Transport Corridors Project
Iraq is also looking to start work on an elevated metro system for Baghdad in the second quarter of 2022 in addition to a contract to rebuild Mosul .Airport In 2020, the Iraqi electricity sector agreed to contacts with General Electric and Siemens to modernize power plants and the transmission network in .Iraq .
John Menzies, the London-listed airport services company, won in 2020, a very positive sign for foreign investors Corruption, institutional weakness, persistent security concerns, and onerous bureaucracy appear to be just some of the major impediments to .investment in Iraq, a war-torn country whose peace remains fragile with two million people still displaced from the ISIS conflict .
However, investors who have an appetite for the markets will discover the opportunity to participate in the renaissance of Iraq .The agri-food sector in Iraq is one of the few sectors of the economy, and represents a fertile place for investment in the non-oil scene in Iraq
A new statement from the Rafidain Bank regarding loans and interest
Today, Thursday, Al-Rafidain Bank issued a new statement regarding loans and interests for citizens.
He added, "It was decided to increase the interest rate on deposits for a period of six months to become 4.5 percent, as well as to increase the interest rate on fixed deposits for a period of one year to reach 5.5 percent."
The statement indicated that "the interest rate on deposits for two years has been increased to 6.5 percent."
Parliamentary Finance hosts the Minister of Finance and the Director General of the Accounting Department to discuss 3 files
link
Today, Thursday, the Media Department of the House of Representatives announced that the Finance Committee hosted the Minister of Finance and the Director General of the Accounting Department, and discussed with them 3 files.
She added, "The hosting files focused on implementing the 2021 budget paragraphs and automating customs and border crossings.
CBI Update: Just a note:
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