WOTS FRI AUG 27 21
The Minister of Finance reveals the size of Iraq’s debts: We have reached the end of the green light
There is no My FX Buddies Podcast today but you can hear yesterday's very exciting one here:
These articles came out later in the day:
Mr. Muqtada Al-Sadr thanks Al-Kazemi and announces the return to the elections and demands his supporters to participate in a million
Disclosure of the content of the reformist Al-Sadr paper: Al-Kazemi adopted it and these parties signed it
A member of the Sadrist movement, Mudar Khazal Al-Azrajawi, revealed on Friday that Prime Minister Mustafa Al-Kazemi had adopted the reform paper that the leader of the Sadrist movement, Muqtada Al-Sadr, had talked about.
Al-Azrajawi told Shafaq News Agency, “The reform paper that Al-Sadr talked about was adopted by Prime Minister Mustafa Al-Kazemi, and was signed by the heads of Shiite, Sunni and Kurdish political blocs.”
The parliamentarian also indicated that “the signed document serves as a covenant between the political blocs and will be published in the media soon, adding that” the signed document will be presented for discussion in the House of Representatives in the coming days.”
Al-Azergawi indicated that “there will be a new vision during the upcoming elections.”
On Friday, the leader of the Sadrist movement, Muqtada al-Sadr, announced that he would run for the legislative elections to be held on the tenth of next October, reversing his previous position in which he decided to boycott them.
Al-Sadr had decided in mid-July to boycott the parliamentary elections.
Al-Sadr announced in a televised speech today that he had received a reform paper from the political forces, saying: This paper came in accordance with our aspirations, calling at the same time for a pause under the dome of Parliament to implement the terms of the reform paper.
He added, “Returning to the electoral project has become an acceptable matter, and we will contest the elections with determination to save Iraq from corruption, occupation, dependency and normalization,” adding that “the interest necessitated that we run in the million elections.”
Security spread and cut off major streets in Baghdad in preparation for Saturday's summit
Security forces intensified their presence in the vicinity of Baghdad International Airport and the "Green Zone" in which the summit will be held.
Security sources said that "the security plan also focuses on dealing quickly with emergencies and securing the movement of foreign delegations participating in the summit."
On Friday morning, the authorities closed a number of main streets and squares in Baghdad, and intensified inspection procedures for pedestrians, as part of a plan to secure the summit.
The permanent members of the UN Security Council, which are the United States of America, Russia, China, France and the United Kingdom, are scheduled to participate in the Baghdad Summit, tomorrow, Saturday.
The European Union and the Group of Twenty countries will also participate, in addition to Turkey, Saudi Arabia, Iran, Kuwait and Jordan, along with Qatar and Japan, according to data from the Iraqi Foreign Ministry.
Baghdad desires to strengthen its economic relations with neighboring countries and open its doors to investments, especially to establish projects in areas affected by the war against ISIS, as well as Iraq's restoration of its pioneering role in converging views between the countries of the region.
Nationalization of Iraqi banks
In the fifties and sixties of the last century, with the spread of the Nasserist tide, the elimination of the private sector and capitalism and the trend towards socialism and nationalization became prevalent.
On the fourteenth of July 1964, the government of former President Abdul Salam Aref issued Resolution No. 100, which provided for the nationalization of all private banks and branches of foreign banks in Iraq.
One of the fathers of this decision was Dr. Khair al-Din Haseeb, the owner of the Nasserist ideology.
nationalization of banks; There was no economic or banking motive for the nationalization at the time, meaning that the Iraqi banks, as well as the branches of foreign banks, were not facing any financial difficulties, which confirms that the decision was purely political.
The biggest loser from this decision was the shareholders and bank owners.
The decision stipulated that they be compensated with nominal bonds payable after 15 years and at an interest rate of 3 percent.!
Here, we cannot be certain that anyone received his right after 1979!!
The negative effects of nationalization on the banking sector are significant.
Banks were managed with a centralized, non-competitive mentality, which pulled the banking sector out of the role of a competitor and a magnet for citizens' hoarded money to turn into a window for passing government projects and initiatives such as agricultural, industrial, housing and other initiatives.
The other problem is the loss of confidence among investors to invest in banks for fear of nationalizing them.. As for the ordinary citizen, he has lost absolute confidence in the banking sector.
As for foreign banks, they lost confidence in the Iraqi market, and therefore we did not find a foreign bank operating in Iraq until 2004, that is, after the change.
The government took control of the banking sector.
That control loses competition and innovation, and the best example of that is today. We see that the two largest banks in Iraq are Al-Rafidain and Al-Rasheed, far from development and competitive technology. They do not even have a single ATM, and they have a combined market share of more than 85 percent!
This is because there is no need to compete, and even in the event of loss and non-recording of profits, the government is obligated to pay the salaries of the employees!
And the government is appointed by the general managers, whether or not by agency, and the powers overlap between the Central Bank and the Ministry of Finance.
In most countries of the world, private sector banks enter the competition process in providing the best services to achieve profits for shareholders.
Here the customer will receive the best possible services to continue with the bank, and the shareholder or investor in the bank will increase his profits.
The opposite is the case in government banks.
Governments are supposed not to enter into the banking business, either from near or far, and this is the role of the central bank, its role of supervision and legislation..
Except in the Iraqi case, we find the government represented by the Ministry of Finance owning the largest banks, and private banks did not take their expected role for many reasons, including the control of government banks, as well as the weakness of private banks.
Are there solutions?
Yes, to rehabilitate the Rafidain and Al-Rasheed banks, and to offer the shares for internal investment in the Iraqi Stock Exchange, and to open subscription for all citizens, at a rate of 49 percent. The government retains as a shareholder 51 percent.
To elect a board of directors bound by a development plan, and for this board to be accountable to the shareholders, who are the ones to be elected.
The actual supervision and control over the work of banks should be from the central bank only, and the government is an investor only.
Stimulating private banks to merge with each other, as well as expanding their branch network, as well as setting the minimum required banking services needed by the Iraqi market.
Work on monitoring the services provided by some banks and creating a banking competition law (bundling), which limits forcing customers to transfer the settlement of their salaries to the bank in return for obtaining a service, i.e. a package of services.
This legislation will develop the banking sector and increase competition because the customer is the decision maker.
* Economic and banking
Enjoy today's August 27th, 21 WOTS Word on the Street Report
ublishes the dollar exchange rate today against the Iraqi dinar in the local markets and Iraqi exchanges on Friday (27 August 2021), which recorded relative changes against the Iraqi dinar.
The price of the dollar today in Iraq came in the local markets and the Iraqi stock exchanges in the capital, Baghdad, Basra and Erbil as follows:
The exchange rate of the dollar against the Iraqi dinar in Iraq today, Friday, August 27, 2021
Favorite Currencies Forex Quotes
| Symbol | Bid | Ask | High | Low | Open | Change | Time |
|---|---|---|---|---|---|---|---|
| USD/IQD |  1437.2000 |  1488.2000 | 1457.2000 | 1457.1000 | 1457.1000 |  0.0000 | 12:51 |
| USD/VND | 22789.0000 | 22791.0000 | 22784.5300 | 22784.1900 | 22784.1900 | 0.0100 | 00:11 |
| USD/CNY | 6.4775 | 6.4795 | 6.4867 | 6.4769 | 6.4805 | -0.0030 | 05:28 |
| USD/KWD | 0.3006 | 0.3016 | 0.3007 | 0.3006 | 0.3007 | -0.0002 | 05:03 |
| GBP/USD | 1.3705 | 1.3706 | 1.3720 | 1.3680 | 1.3698 | 0.0007 | 05:28 |
| USD/IRR | 42000.0000 | 42210.0000 | 42097.5000 | 42097.5000 | 42097.5000 | 0.0000 | 00:00 |
| USD/IDR | 14409.0000 | 14409.0000 | 14471.0000 | 14391.0000 | 14448.0000 | -38.0000 | 05:25 |
Oil prices rise, Brent jumps above $72 a barrel
Crude oil prices recorded, today, Friday, a noticeable increase, supported by the weakness of the dollar.
And the futures contracts for the month of October next rose by 1.41%, to reach $72.07 a barrel, while the price of Brent crude futures contracts, for the month of next November, rose by 1.28% to reach $71.08 a barrel.
The US WTI futures contract for the month of October also rose by 1.39%, to reach $68.36 per barrel.
This week, the strongest growth in oil prices was recorded since October of last year, as the price of Brent crude rose by 8.9% and WTI by 9.55%.
The rise in the price of oil supports the weakness of the dollar, as its index (the price of the dollar against a basket of currencies of six countries - the main trading partners of the United States) decreased by 0.07% to 93 points.
The Minister of Finance reveals to Shafak News the size of Iraq’s debts: We have reached the end of the green light
On Thursday, Finance Minister Ali Abdul Amir Allawi revealed the size of Iraq’s external and internal debts, warning that the country has reached the end of the green light regarding the size of its debts.
Allawi said in response to a question to Shafaq News Agency, “One of the good aspects of our foreign debt is that most of it belongs to governmental or international institutions and is long-term, and the interest is relatively good.”
And he indicated that “foreign debts amount to 50 billion dollars, and increase and decrease according to repayment, with the exception of bonds amounting to approximately 3 billion dollars, of which one billion dollars will be repaid after 3 months.”
And the Minister of Finance continued, “The other debts are linked to the restructuring of Iraq’s previous debts with the so-called Paris Club,” adding, “We will soon reach the last stages of repaying these debts.”
The Paris Club, a grouping of countries and international financial institutions, was founded in the fifties of the last century, and its function is to provide financial loans to spare countries and entities the risk of bankruptcy.
And a number of countries affiliated with the Paris Club decided in 2004 to write off 80 percent of their debts owed by Iraq since the nineties of the last century.
As for the internal debt, Allawi said that “the internal debt amounted to 75 trillion dinars,” noting that “the last year witnessed a significant increase in the size of the Interior Office as a result of the collapse of oil prices and the need to borrow to fill the deficit in salaries and the budget in general.”
The Minister of Finance considered that “the external and internal debts are reasonable and amount to 80 percent of the national income, but we have reached the last green light and we have not yet reached the yellow light, and we are very careful to enter into other external obligations.”
Allawi pointed out that “internal obligations require more discipline from the state, because when the state borrows locally from the central bank, government banks or the people, our obligations cannot be mocked.”
He explained that “what happened in the last budget, the parliament omitted the payment of interests and installments on most of the internal debts, and this is not possible because it will lose confidence in the ministry and the state regarding paying the interest on time, especially as we are in the process of issuing new bonds. This matter must be adhered to and to restore confidence to the Ministry of Finance and the State when it borrows.” locally”.
Anti-terror forces deployed in central Baghdad and near the airport
A security source reported the deployment of anti-terror forces on Thursday in the center of the capital and near Baghdad International Airport to secure the delegations participating in the upcoming Baghdad summit.
The source told Shafaq News Agency, "The forces of the Counter-Terrorism Service have begun to deploy within the Karrada areas, inside the Green Zone and the airport approaches, with the participation of the Special Division."
The source added that "the deployment comes within the security plan for the Baghdad summit, which has entered into force."
The summit is scheduled to be held next Saturday, with the participation of delegations from Iraq's neighboring countries and other Arab and Western countries.
CBI Update: Just a note:
including $0. CASH
ISX Update: Shares Traded: not updated for todayValue Traded: not updated for today
8-26-2021 Guest Guru Desert Advisor I heard about the ATMS a while ago. This isn't breaking news. However over the past week there's been gurus and military intel...I focus on things that we could see and touch...I need hard facts. I haven't seen anything to suggest that these new ATMs are related to the reinstatement or have the new notes and the old notes. I haven't seen anything of that nature. But I'm going to show you what I found. Article quote: 'International Development Bank, where a contract was made to purchase and support more than 300 advanced ATMs...' So they're getting new ATMs. Make what you want about that...
8-26-2021 Intel Guru Holly Thursday Rv News: If you remember one thing on this journey, this is event driven not date driven. Dates are targets when they want this to happen, but if the event has not happened then it moves out further. All is ready for the go and we wait until the green light at our level is given. There is more and people being quiet which is a very good sign...The end is near...
8-26-2021 Newshound/Intel Guru Walkingstick [via Guru Frank26] The specimens/samples of the new small category notes were sent to the international banks and they received them in sheet forms or book forms but now the specimens/samples are being sent to the CBI banks to practice with and prepare to use them as an example to the citizens...
8-26-2021 Newshound Guru Pimpy the less dinars you get for your U.S. dollar that's better for us. That means the dinar is strengthening. It strengthens all the way to the point where you get more U.S. dollars for your dinar. That's what you want to see start happening. That's the direction we want to go into. You don't want them to devalue the dinar. You want them to increase the value.
8-26-2021 Intel Guru Frank26 Article: "The Governor of the Central Bank confirms the provision of the necessary infrastructure to advance the reality of financial inclusion" What does inclusion mean? To be part of. What does financial mean? Their monetary reform. What does reality mean? The exchange rate that will be able to do the economic reforms. This article is so powerful. IMO they're telling you the reality of monetary reform is being included in our economic reform, in our budgets, in everything that we're doing in the country...it's all there.
8-26-2021 Newshound/Intel Guru Petra Yes…the countdown has begun imo...The international party in Baghdad is on the 28th? Lots of interesting things at bay! … So why are they all coming? Kings, Magistrates, Prime Ministers, Central Bank Governors…not their representatives…them! Why? You all know!… We are not calling that specific day. No dates...but close before or after this meeting has key logic to it!...
ARTICLE 1-A (from PM Kadhimi's website; posted only on Arabic side, not on English side)
Our responsibility is grave, because the main problem in Iraq as we see it was not a problem of demonstrations or the intersection of opinions or ideas, but rather the problem, as we understood it, is the lack of confidence. The lack of trust in any society in the world is a source of real danger to this society. We faced a real social crisis, more than just a political crisis, even if its causes were political. And when society loses its confidence in official institutions and in the political and electoral process, it is on the verge of losing confidence in the state, and these are the highest stages of danger to any society in the world. We deeply believe that our people do not lose confidence in the state, so let us understand that the popular movement in Iraq, its essence and depth, is the defense of the state, regardless of the method of expression and the difference in viewing angles on how to practice defending the state. We accepted the responsibility according to a roadmap consisting of three main points: The first is to reach fair, fair and early elections. The second is related to ensuring the security of the citizen and combating uncontrolled weapons. The third is to address the consequences of the painful events that passed through Iraq in the month of October of the year two thousand and nineteen and their repercussions, and beyond this history and the fall of dear martyrs among our youth who are demanding their rights. We focused first on compensating those affected by the families of the October martyrs, and we issued decisions to include them with all the martyrs' entitlements, and we insisted on this decision despite the presence of political opposition to it, and we did not retreat from taking it to the end. We are still holding on to the election date on the tenth of next October, because we are true to our word before our people. We said in the letter of assignment that we will reach these elections. We did our duty and took many steps in terms of supporting the forces and restoring their prestige to play their role in protecting the homeland and the citizen and fighting uncontrolled weapons and crime, whatever their source. The next government must complete this task, and stress the continuation of the momentum to complete building our security and military capabilities and prevent all armed manifestations outside the framework of the state. We are determined to prevent Iraq from engaging in regional and international tensions, and we have adopted the principles of good neighborliness with our neighbors and friends, and we have restored distinguished regional and international relations for the benefit of the Iraqi people. The file of foreign relations is at its best for many years, and the Baghdad Conference for Cooperation and Partnership will be held on Iraqi soil, with wide regional and international participation, which is a reflection of Iraq’s positive foreign policy that opens new doors for cooperation and support for Iraq in all fields, and Iraq restores its natural and historical size and role in the regional surroundings. and international. We formed a legal team of retired judges known for their integrity, which has taken the greatest stride in collecting facts about the events of October of the year two thousand and nineteen and their repercussions and circumstances from all concerned parties. The institutional work of the legal team needs time to ensure its integrity and non-interference in its procedures. As a government, we have left the concerned team absolute freedom to deal with all files that pertain to the executive authority, its institutions, personalities and files, and we have also left them absolute freedom to determine the mechanism for announcing the final results of the investigation. We faced no less serious challenges represented by the economic collapse with the collapse of oil prices, and the challenge of the Corona pandemic, and thank God we have overcome the economic crisis together. Many parties that do not want good for Iraq did not want us to overcome this crisis, but our people were vigilant and knew the boundary between the careful position and the bidding position that traded in the capabilities of the country, and realized that the crisis needed real decisions and not political outbidding and shouting in the media. We have prepared the reform white paper to be a road map to save the Iraqi economy from the state of slavery in oil prices, and move it; To be an effective and productive economy in the coming years. What I am reviewing here does not represent a defense of the government, and it is not electoral propaganda; Because, as you know, I am not participating in the elections, but it is a framework that must be clear to understand together the challenges facing this country and the paths that must be established in the next stage. I will work hard to ensure that the recommendations of this conference are present in the government performance, and I urge all of you to cooperate together as people of one country to move our country from a state of conflict, difference, deterioration, doubts and distrust to prosperity, development, strength, work and mutual trust. All these goals do not occur with words only, but through two basic issues: The first is to identify the defect frankly, clearly and courageously. The second is to work to fix this imbalance, no matter how difficult and painful it is, even if we insist together that our people deserve the future and that they deserve to move from a state of chaos to a state of stability. Our people deserve the state, and reject the non-state, our people deserve their place among the nations of the earth, and refuse to be a playground for conflicts and whims, our people have their free will, and refuse to be dictated by a foreign will. The people of Iraq and future generations are everyone’s responsibility, and we have to put our hand in the hands of each other, the government and parliament, national political forces and popular activities, clans, youth, women and professional unions to help our country move forward always, and open future horizons for future generations. The time for adventures is over.. Today is our date with hard work, and elections are the criterion for choosing who will stand up to this work and gain the people’s trust. Participate in the elections and support them. Choose your representatives, and be on the covenant with your people.ARTICLE 1-B (from PM Kadhimi's website; posted only on Arabic side, not on English side)
We welcome you in Baghdad peace, and in Iraq's meeting, cooperation and partnership, and we are preparing to hold the Baghdad Conference for cooperation and partnership, which will begin on Saturday, an important event not only for Iraq, but for the whole region. There are many challenges we suffer in the region, and we all have cooperation and communication in solving, and crossing towards creating economic and social integration among the peoples of the region. Look forward to this meeting, and what will be supported by support for the role of Iraq in the establishment of peace. This conference reflects Iraq's vision in the need to establish the best relations with its perimeter and with the countries of the world. Iraq began to take his historical role to be one of the pillars of peace in the region. Iraq can create a bridge for communication, cooperation and comprehensive integration, with all countries in the region. Enough wars, conflicts and differences .. Iraq calls on all countries in the region to build peace based on integration among the peoples of the region. There are significant opportunities in Iraq, the countries of the region can cooperate and contribute, and create a new space for all peoples of the region; To adopt peace and stability. We are desirable for fate and decisive elections after a month and a half, will enhance the democratic path in the country. We have worked in about a year and two months at different levels to reform economic, security and political tracks in the country. We succeeded in achieving great purposes, and we continue to build and committed to building an actor, stable and sustainable. We look forward to regional cooperation, with all States in the region. From the reef, Dear Media, Transfer a real image reflecting the pros and achievements achieved for your country, and there is no diversity at various levels to the world. You are always influential, and what you will move will help this ancient country to promote a new, to regain its preachers for seven thousand years.
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