WOTS TUE JUN 22 21 Parliament Finance discusses with the Governor of the Iraqi Central Bank the implications of changing the exchange rate
These are the articles I discuss on My FX Buddies Podcast
The advisory body reveals a joint study to address the effects of the exchange rate change
Today, Monday, the Council of Advisers in the Presidency of the Council of Ministers revealed two directions through which it works to support and advance the private sector, and while it identified two options for investing in high oil prices, it revealed a joint study to address the effects of changing the dollar exchange rate.
The head of the authority, Abdul Karim Al-Faisal, said, on the sidelines of the e-learning assessment workshop held by the advisory board of the official agency, that “the advisory board, under the direction of the Prime Minister, Mustafa Al-Kazemi, worked to find ways to support and advance the private sector,” noting that “ The prime minister believes that there is no economy in any country without a strong private sector.”
Al-Faisal added, "The authority worked in two directions to support the private sector, the first is to simplify the procedures for obtaining licenses, exemptions, and others, and the second most important is to provide loans to industrialists and private sector men in various commercial, service and health sectors, the repayment of which is long-term and with very low interest rates at the initiative of the Central Bank and through a committee It is headed by the Secretary-General of the Council of Ministers, with the interest of the Council of Ministers and the President of the Council in supporting the private sector.
He continued, "We also worked on decisions to own industrial lands for owners of industrial projects who had taken an industrial license or operated it for five years, and it is now under implementation," stressing that "these decisions give great support to the Iraqi product, and therefore the authority was proactive in preparing and taking them."
He pointed out that "the commission, under the guidance of the Prime Minister, had a role in preparing seminars to hear the problems of the private sector and the problems that are encountered in the investment sector, and they were submitted to the Prime Minister, and decisions were taken on them."
Regarding the rise in oil prices, Al-Faisal explained, "There is a budget deficit of 29 trillion dinars, and it is possible to bridge the deficit through high oil prices."
He pointed out that "the government is likely to go towards preparing a supplementary budget to address sectors that have not been allocated sufficient funds, such as the health sector and support for farmers and peasants through a committee chaired by Ali Allawi, Minister of Finance, who is an expert in this."
Regarding changing the exchange rate of the dollar, Al-Faisal stressed that “there is a study conducted by the Central Bank with the Ministry of Planning and economic experts, to address the effects of changing the exchange rate process in order to reduce its effects or activate the positive aspects of the decision
Economist: The rumor of raising zeros needs 100 million dinars if the intentions are sincere
The economic expert, Diaa Mohsen, ruled out, on Monday, the possibility of exchanging the currency or raising zeros from it.
Mohsen said, in a statement to the agency, "The Information", that "if the intentions of those holding on to power were sincere by exchanging the currency or raising the zeros from it, this means that we need 100 million dollars to make this big change."
He stressed, "The argument for eliminating fraud in this plan requires burning all the money in the central bank and issuing a new dinar, but this matter is unlikely and just a process of feeling the pulse of the street."
He pointed out that "the change will not make any difference between the local value of the Iraqi dinar and other currencies."
Al-Zubaidi: The statements deleting zeros entered the country's economy into a new depression
The independent politician, Thaer Munir Al-Zubaidi, confirmed that the statements of deleting zeros entered the country's economy into a new depression, to which are added the ill-studied economic and financial plans.
And he said in a press statement today that: the recent irresponsible statements about the deletion of zeros from the national currency on the one hand and the rise in the dollar exchange rate on the other hand constituted confusion and more depression in the Iraqi markets, which affected the work of the private sector in general.
Al-Zubaidi added that: the government measures to stop the deterioration of the national currency have not yet reached the required level, and the dollar exchange rate remained high without urgent and tangible solutions, despite the rise in the price of a barrel of oil to nearly $75.
He explained: We also did not witness any serious moves by the government and the regulatory authorities regarding the abnormally high food prices, which increased the suffering of people, especially the owners of daily work and limited income.
Al-Zubaidi called on the Prime Minister to hold an urgent meeting with the Ministry of Planning, the Governor of the Central Bank, the Integrity Commission and the supervisory authorities to remedy the collapse of the Iraqi economy and its negative effects on the standard of living of the citizen.
Deputy: Parliament will fail to complete its quorum today due to its preoccupation with electoral campaigns
The representative of the Kurdistan Islamic Union, Jamal Cougar, ruled out the parliament's success in completing its quorum during today's session, indicating that more than 200 deputies running for the upcoming elections are constantly absent.
Cougar said in a statement to Al-Maalouma that "the council has for some time been failing to hold its sessions because more than 200 of its current members are candidates for the upcoming elections scheduled to take place on 10/10/2021."
Cougar added, "The deputies are busy with electoral propaganda, and the parliament cannot hold any session for a while because the deputies have traveled outside Baghdad."
He explained that "today's session, Tuesday, will not witness a quorum, and some laws will be discussed without voting on them, and then the session will be adjourned, as usual, to another time."
Iraq and Japan discuss establishing a long-term strategic partnership project
Today, Tuesday, the Second Deputy Speaker of the House of Representatives, Bashir Haddad, discussed with the Japanese ambassador in Baghdad ways to enhance economic cooperation and establish a long-term strategic partnership project between the two countries
Haddad's office said in a statement, received by Alsumaria News, that the latter "received in his official office in Baghdad today, Tuesday, the Ambassador of the State of Japan in Iraq, Kotaro Suzuki, to discuss a number of files and issues of common interest, foremost of which is the development of bilateral relations between the two friendly countries, and ways to strengthen Prospects for joint cooperation in various economic, commercial, technological and investment fields and the contribution of Japanese companies to reconstruction and infrastructure, as well as cooperation in the fight against the Corona pandemic
Haddad praised, according to the statement, "Japan's role in the important stage after 2003 and its support for the success of the democratic process in Iraq, calling for the establishment of a long-term strategic partnership project between the two friendly countries, and benefiting from Japan's experiences in the advancement, economic development and industries, stressing the support of the House of Representatives." ways to strengthen and develop relations between the two countries.
For his part, the Japanese ambassador reiterated, "the support and support of his country's government to Iraq in a manner that serves common interests and enhances stability in Iraq, and Japan's readiness to continue support and cooperation in all fields and to support the Iraqi government's policy and endeavors regionally and internationally for stability throughout the region."
Greek Prime Minister to visit Iraq soon
The Greek Consul in Kurdistan Region, Stavros Keremis, announced: "The Greek Prime Minister, Kyriakos Mitsotakis, will visit Iraq soon.
During his meeting with Qubad Talabani, Deputy Prime Minister of the Kurdistan Regional Government, the Greek Prime Minister is scheduled to visit Iraq soon, and that the region Kurdistan will be one of the stations of his visit.”
Talabani discussed with the Greek consul, according to a statement of the regional government, bilateral relations and ways to consolidate relations between the Kurdistan region and Greece.
During the meeting, Talabani stressed the need to diversify sources of revenue, praising Greece for paying attention to the tourism sector, expressing his hope that A model and experience for the Kurdistan region to follow.
Germany supports Al-Kazemi in the white paper, and the European Union is monitoring the elections
German Foreign Minister Heiko Maas clarified his country's support for the current Iraqi Prime Minister, Mustafa Al-Kazemi in implementing the reformist white paper, as he chose the best through this paper, as well as in monitoring the upcoming elections, which he described as "decisive", indicating that Iraq is important for the stability of the country. The entire region, and Iraq is pursuing an important and very good policy in .the region, as it has played a mediating role between Iran and Saudi Arabia and other countries as well
Maas said that the elections are very important for Iraq, the Iraqi Prime Minister has great goals that he wants to achieve by the reform white paper, the Prime Minister chose the best through this paper, but for the current government and for the future of Iraq, these elections are very crucial, and it is important that they take place At an international level, the European Union is ready to send a delegation to monitor the elections, and Germany is ready .to participate in that
He added: We want to support the current government and the future government as well in these reforms. Iraq is important for the stability of the entire region, and Iraq is pursuing an important and very good policy in the region, as it played a role in mediating between Iran and Saudi Arabia and .other countries as well
The Iraqi Foreign Minister, Fuad Hussein, pointed out the importance of conducting the elections as they should, and after the elections, Europe will move forward with its role in Iraq more, because they see that the stability of Iraq is the stability of the region, and it is clear the extent of the .relationship between the security of Iraq and Europe
Luxembourg's Foreign Minister, Jean Asselborn, said that Iraq is on the cusp of the elections, and the European Union wants to help in this area and has .been called to do so. We want to monitor the elections because we know how crucial they are
And he added: Years ago, I participated in a conference held in Kuwait on Iraq, at that time we believed that the problems were on the right track towards a solution, adding that we were wrong, as the problems still exist in Iraq and Syria, so it is important for the international community to support .Iraq in order to enjoy a legitimate government, and become stable country
He added that the special status of Iraq and the international community's anticipation of the situation prompted the European Union in general and Germany in particular to pay more attention to Iraq, where the German Foreign Minister met with his Iraqi counterpart to talk in detail about Berlin's .support for Baghdad
The Kurdistan Regional Government sets a date for Baghdad to send 200 billion: Our share of the budget is more than 11 trillion
The Minister of Planning in the Kurdistan Regional Government, Dara Rashid, announced on Wednesday that the federal government will send 200 billion dinars, with a retroactive effect, until the Board of Supreme Audit finishes auditing the region’s imports.
Rashid said, in a statement he made to reporters today, that the region’s draft budget was delayed in sending it to Parliament due to the delay in implementing the federal budget law, because until now it is not clear how much Baghdad will send to us.
And he added, “The region’s share in the federal budget law is 11.4 trillion dinars, and if we do not receive this amount, we will not be able to organize our financial affairs.”
Rashid also confirmed that currently the federal government has agreed to send 200 billion dinars retroactively until the completion of the audit of the region’s imports by the financial control, adding that the federal financial control is doing its work and until yesterday their delegation was present in the region.
The minister noted that there are currently no legal obstacles to sending the region’s share, and this is only prevented by technical matters, stressing that the regional government has expressed more than once its willingness to deliver oil imports and crossings according to what is stated in the law
Regarding the number of employees working in the public sector, the minister said: Currently, the region has 753 thousand employees, and the Federal Oversight Bureau has no comments about the number of the region’s employees.
And he went on, saying: The Ministry of Finance announced that it will continue to deduct 21% of the employees’ salaries for this month as well, because so far, even the amount of 200 billion dinars has not reached the region.
Parliamentary Finance: Entities are trying to embarrass the government and the central bank to thwart the process of changing the exchange rate
The Parliamentary Finance Committee revealed a plan to control the exchange rate, while indicating that there are visions to reduce the amounts sold in the currency auction.
Committee member Faisal Al-Issawi said in press statements that the exchange rate change is in its infancy and it is natural that it will witness great inconsistencies, pointing out that there are some parties and speculators who are trying to embarrass the government and the central bank to thwart the process of changing the exchange rate.
He stated that the process of changing the exchange rate is still under control, and the bank has a plan and a clear vision to address and control the issue, explaining that the currency auction was part of the committee's discussion with the Governor of the Central Bank, indicating that there are visions about reducing the amounts sold in it.
Iraq..a collapsed economy with total dependence on oil..and corruption is eating away at the ministry
Oil is the only element supporting Iraq's economy, especially after the fall of the political system in 2003 and the succession of governments after it, which did not try or think to come up with an alternative or competitive economy that supports the country's budget.
During the past three years, the decline in global oil prices, and the accompanying conditions of the Corona pandemic, caused a stifling economic crisis that reached its climax with the Iraqi government's inability to secure the salaries of its employees, forcing it to borrow internally and externally to fill the spending deficit.
Warnings issued by specialists, officials and politicians of the danger of relying on oil alone, as the government neglected by relying on black gold to finance the country’s expenditures to support agriculture and industry and make them an element competing with oil in financing the budget, and in this context, the President of the Republic, Barham Salih, warned of the future repercussions of the harm of relying on oil. Oil as a major source in light of an expected increase in the population of Iraq to reach 80 million by 2050.
Barham Salih had said that "the huge oil reserves in Iraq and the countries of the region will not secure the future of our generations, and the continuation of the current situation will affect the whole region."
He explained that "the volume of Iraq's oil imports since 2003 until now is a thousand billion dollars. Estimates indicate that about 150 billion dollars were smuggled abroad through corruption deals."
Saleh predicted that Iraq's population would reach "80 million people in the year 2050", warning of "a decline in demand for oil by 2030 as the world switches to electric power,"
despite the country's financial budgets, which were described as "explosive", over the years, from returns. Selling oil, but the rampant corruption in the Iraqi state institutions has led to the wasting of most of that money on fake and lagging projects, as well as the smuggling of up to about $500 billion outside Iraq.
In the context of talking about rampant corruption in the joints of the state, especially in the Ministry of Oil, the Secretary-General of the Kafa Rahim Al-Daraji movement revealed major corruption files in the ministry.
Al-Daraji said, "The cost of food for 60 employees per week in one of the departments of the Ministry of Oil has reached five billion and about 400 million."
He added, "The work set for one engineer, consisting of a suit, a helmet and shoes, costs the state 15 million dinars," calling on the religious authority to return the corrupt where they came from," as he put it
, adding, "Departments in the Oil Ministry print a monthly magazine whose cost has reached five
billion. Dinar".
Al-Darraji called on citizens for a major electoral revolution to eliminate corruption in the country.
The Minister of Finance talks about the white paper
Today, Tuesday, Finance Minister Ali Abdel Amir Allawi confirmed that the white paper aims to correct institutional performance and provide the best projects
The ministry said in a statement received by Alsumaria News, "The Minister of Finance, Ali Abdul Amir Allawi, held a meeting with the institutional performance evaluation coordination team in the General Secretariat of the Council of Ministers, which included Deputy Secretary-General of the Council of Ministers Jassem Muhammad Hamid and Riyad Fadel Muhammad, head of the institutional performance evaluation coordination team and Taif." Sami, Undersecretary and Director General of the Economic Department in the Ministry of Finance
The statement added that "the Minister of Finance discussed during the meeting the ministry's strategic plan and its future vision aimed at developing and improving services provided by its departments to all state institutions and to various segments of society
The Minister of Finance indicated, according to the statement, that "the principle of work and tasks of the ministry and its departments have witnessed a remarkable development by adopting the best international standards of high quality, and it is continuing with progressive steps towards raising the level of the tasks assigned to it
The statement continued, "The presentation of the financial and economic reform plan represented in the white paper, which aims in its entirety to correct the institutional performance aimed at providing the best projects and improving the level of services that are in the interest of the Iraqi people
Al-Attar calls for the digitization of life to develop the Iraqi economy
A member of the Iraqi Economic Council, Ghadeer Al-Attar, called on the government, on Tuesday, to benefit from the digital experiences of the Dubai government.
Al-Attar said in a statement that Mawazine News received a copy of it that "the government of Dubai has issued a law for the Dubai Digital Authority and all smart circuits are attached to it, in order to digitize life in Dubai, not just digitize Dubai services."
He added that "digitalization has changed the way the world lives in most of its economic and social aspects, so that it has become rare to find someone who has nothing to do with it from near or far."
Al-Attar pointed out that "digitization is one of the pillars of the economy of the twenty-first century, as the rapid technological development that the world has known has had a great impact in the field of economy, as technological systems have touched various economic and service sectors and contributed to achieving more advantages for these sectors, including the speed and efficiency of services, including Developing innovations and solutions that society needs, including improving administrative and governmental work methods, which is what Iraq currently needs.
Parliament Finance discusses with the Governor of the Central Bank the implications of changing the exchange rate
The Finance Committee in the House of Representatives discussed, today, Tuesday, with the Governor of the Central Bank, steps to reduce the repercussions of changing the exchange rate and its implications, while the latter indicated the launch of an initiative to move the housing sector.
The Finance Committee discussed, "the projects, plans and loans that the bank promised to implement after changing the currency exchange rate, as the committee stressed the need to adhere to those promises and the speed of their implementation, in particular those that contribute to the employment of unemployed youth and support the housing, industry and agricultural sectors, support the local product and ease restrictions and routine procedures on them." .
She indicated, "Examining the issue of electronic linking between the ministries of commerce and finance, the customs and tax authorities with the Central Bank, as well as the automation of procedures at border crossings, stressing the need for the government to fulfill its duty towards this, as indicated by the Finance Committee and the House of Representatives through the Budget Law for 2021."
The Finance Committee called on the Central Bank to "take the strongest and strict measures against banks that violate regulations, confirming its support for the bank in this regard, since the current period requires concerted efforts between all authorities."
The committee directed, "to host the Minister of Finance to discuss what was proposed in the hosting and to discuss a number of issues that concern the economic reality of the country."
For his part, the central bank governor provided an explanation of what the bank has taken and the steps it seeks to take to reduce the negative effects of changing the exchange rate, revealing the launch of an initiative worth 5 trillion in addition to contributing to moving the housing sector to complete the residential complexes that were suspended, as well as the imminent issuance of bonds. It enables people to invest their money.
Below here is the daily WOTS report "WOrd on the Street" report:
The dollar exchange rates in the local markets for Tuesday, (June 22, 2021), according to specialists' monitoring.
Baghdad - Stock Exchange of struggle
147,800
....
Price in exchange (approximate )
147,250
148,250
————————————————-
Erbil / Bursa
147,950
———————————
Basra / Bursa
148,100
-——————————-
Mosul / Bursa
148,000
——————————-
Najaf / Bursa
147,800
Favorite Currencies Forex Quotes
| Symbol | Bid | Ask | High | Low | Open | Change | Time |
|---|---|---|---|---|---|---|---|
| USD/IQD |  1432.2000 |  1482.6000 | 1457.2000 | 1457.1000 | 1457.1000 | -0.3000 | 10:00 |
| USD/VND | 23025.0000 | 23030.0000 | 22994.9500 | 22988.4800 | 22988.4800 | 8.5200 | 22:44 |
| USD/CNY |  6.4746 | 6.4766 | 6.4757 | 6.4579 | 6.4654 | 0.0086 | 05:27 |
| USD/KWD | 0.3006 | 0.3016 | 0.3009 | 0.3007 | 0.3009 | -0.0003 | 05:20 |
| GBP/USD | 1.3875 | 1.3876 | 1.3936 | 1.3860 | 1.3933 | -0.0058 | 05:27 |
| USD/IRR | 42000.0000 | 42210.0000 | 42097.5000 | 42097.5000 | 42097.5000 | 0.0000 | 00:00 |
| USD/IDR | 14463.0000 | 14480.0000 | 14486.0000 | 14389.0000 | 14389.0000 | 75.0000 | 05:26 |
Israel tests digital shekel...
MEDICAID ENROLLMENT HITS RECORD HIGH...
74 MILLION!
Foreign Investors Rush In...
Why Workers Telling Boss to Shove It!
Residents in 20 cities receiving $500 a month basic income...
Morning People at Lower Risk of Depression?
Men who bicker with wives at higher risk of dying young...
A new rise in oil prices .. "Brent above $ 75"
Crude oil prices rose on Tuesday, with Brent crude hitting $75 a barrel for the first time since April 2019, as investors remained optimistic about a quick recovery in global oil demand and as concerns about an early return of Iranian crude faded.
Brent crude futures for August rose 26 cents, or 0.4 percent, to $75.16 a barrel by 05:30 GMT, paring earlier losses. It rose to $75.06 a barrel, the strongest since April 25, 2019, earlier in the session.
The price of US West Texas Intermediate crude for July was $73.70 a barrel, up 4 cents, or 0.1%. West Texas Intermediate crude for August was up 11 cents, or 0.2%, at $73.23 a barrel.
Both benchmarks have risen over the past four weeks amid optimism about the pace of global COVID-19 vaccinations and an expected recovery in summer travel. The recovery pushed spot premiums for crude oil in Asia and Europe to multi-month highs.
And the price gap between the two most-traded oil contracts in the world has narrowed to its lowest level in more than seven months, which indicates that US oil production is still stagnant due to the Corona virus, and the market is likely to remain in short supply.
Negotiations to revive the Iran nuclear deal were suspended on Sunday after hardline judge Ebrahim Raisi won the country's presidential election.
Al-Zubaidi: The statements deleting zeros entered the country's economy into a new depression
The independent politician, Thaer Munir Al-Zubaidi, confirmed that the statements of deleting zeros entered the country's economy into a new depression, to which are added the ill-studied economic and financial plans.
And he said in a press statement today that: the recent irresponsible statements about the deletion of zeros from the national currency on the one hand and the rise in the dollar exchange rate on the other hand constituted confusion and more depression in the Iraqi markets, which affected the work of the private sector in general.
Al-Zubaidi added that: the government measures to stop the deterioration of the national currency have not yet reached the required level, and the dollar exchange rate remained high without urgent and tangible solutions, despite the rise in the price of a barrel of oil to nearly $75.
He explained: We also did not witness any serious moves by the government and the regulatory authorities regarding the abnormally high food prices, which increased the suffering of people, especially the owners of daily work and limited income.
Al-Zubaidi called on the Prime Minister to hold an urgent meeting with the Ministry of Planning, the Governor of the Central Bank, the Integrity Commission and the supervisory authorities to remedy the collapse of the Iraqi economy and its negative effects on the standard of living of the citizen.
CBI Update: Just a note:
including $30,520,000. CASH
ISX Update: Shares Traded: not updated for todayValue Traded: not updated for today
6-22-2021 Intel Guru MarkZ Evening Update: No negative news…A number of my banking contacts are going right to voicemail...I am hoping this is a good sign... [Maybe they signed an NDA?] Yes I am hoping that…or that they are busy exchanging right now. I would like to think this is positive news...a couple of them in Europe...are being asked to stay in position. They are being told this is very close…imminent… [Do you think this is our week] All of my bankings contacts do…and I hope they are correct.
6-21-2021 Intel Guru Holly This is a fluid event and we must remain fluid and keep our expectations in check...As far as the release of the RV, what was told is all is ready and done and then we found out yesterday something needed to be done by the IMF. ...just allow it to happen and it will when it is time.
6-21-20221 Intel Guru Fleming ...WF, HSBC, (and thousands of Redemption Centers), all of the banking entities involved, wait along with millions of us, for the start to begin the exchange process – expected last night. ...No rates were publicly given, and FOREX did not demonstrate the New Iraq Dinar values - along with 22 other new currency values. So what happened? We may never know...What matters is that the RV GCR is moving forward...There’s no stopping RV GCR. FOREX rates are updated every TUESDAY, THURSDAY and SUNDAY...
6-21-2021 Intel Guru MarkZ [via PDK] ...I believe this is going to be a very interesting week...I believe this is going to come at us at a million miles an hour this week...I heard from my banking contacts there was a major push for this to go last night. There is a lot of folks still in place. My redemption folks in Europe are staying in place...Europe is still holding on to hope... As for rates…lots of different rates showing on banks screens …nothing settled…my banking guys do not know what the rate will finally be…We are just waiting for that shoe to drop. I know it’s hard when we are so close…
6-21-2021 Newshound Guru Pimpy Look they talk about this all the time. People always get their panties in a wad. They talk about this but there's already been a ton of studies that say this would be big. This would be bigger than when they devalued the currency in the first place. Are they going to do it? There's no way to tell. Most likely not. That doesn't mean I'm right. It's my opinion...this would be yet another huge blow to the currency itself. People would lose faith in it...they bring this up at least once every six months...everybody goes up in in arms. Everybody panics...watch what they do, not what they say. [post 2 of 2]
6-21-2021 Newshound Guru Pimpy Article: "Al-Kazemi's financial advisor: Deleting three zeros from the currency is an option" Every six months or so this gets brought up and everybody gets in panic mode...he didn't say they're gonna do it. It's an option. They did 5 years worth of study. You know what they found out? It's not doable. It affects the poor too much...they already devalued the currency, now you're talking about lopping off the zeros? So 10,000 dinars becomes 10 dinars...lopping the zeros off the currency -bad. Removing it off the rate - good...if they lop off the zeros people would lose confidence in their currency. You would get pissed off people from countries all over who have invested into the currency... [Post 1 of 2....stay tuned]
6-21-2021 Intel Guru Holly ...all my sources are saying everything is done. We just await the final release and notifications. We clearly are on an any moment release.
No comments:
Post a Comment