WOTS TUES AUG 10 21
Changing the value of the national currency at present .. economic confusion .. it should not be linked to additional unstable revenues
No My FX Buddies Podcast today
Publishes the exchange rates of the dollar and precious metals in daily transactions within the local markets on Tuesday, August 10, 2021, according to the monitoring of specialists .
Baghdad - Stock Exchange of struggle
147,850
....
The price is in most Baghdad exchanges
Purchase
147,250
Sale
148,250
———————————————————-
Erbil - Bursa
147,850
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Basra - Bursa
148,000
Favorite Currencies Forex Quotes
| Symbol | Bid | Ask | High | Low | Open | Change | Time |
|---|---|---|---|---|---|---|---|
| USD/IQD |  1435.4000 |  1486.5000 | 1456.8000 | 1456.8000 | 1456.8000 | -0.3000 | 06:09 |
| USD/VND | 22887.0000 | 22889.0000 | 22924.8400 | 22899.5900 | 22924.8400 | -26.0100 | 04:23 |
| USD/CNY | 6.4806 | 6.4826 | 6.4855 | 6.4775 | 6.4854 | -0.0046 | 05:36 |
| USD/KWD |  0.3005 | 0.3015 | 0.3006 | 0.3004 | 0.3006 | -0.0002 | 05:19 |
| GBP/USD | 1.3860 | 1.3860 | 1.3872 | 1.3835 | 1.3845 | 0.0014 | 05:38 |
| USD/IRR | 42000.0000 | 42210.0000 | 42097.5000 | 42097.5000 | 42097.5000 | 0.0000 | 00:00 |
| USD/IDR | 14376.0000 | 14390.0000 | 14416.0000 | 14374.0000 | 14401.0000 | -20.0000 | 05:38 |
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Iraq is heading to restructure the state-owned Al-Rafidain Bank
Its deposits amount to 27 billion dollars and it has 146 branches inside the country and dozens outside it
Iraq is heading to restructure the Rafidain Bank, one of the largest and oldest governmental banks, and the move came after years of pressure and demands from the International Monetary Fund to restructure Iraqi government banks and make them more in line with the economy.
Appointment of a new director and board of directors
Finance Minister Ali Allawi said in a press statement, "We have started restructuring government banks, and the problem we have is 80% of the Rafidain Bank," noting that "the steps include changing its internal system, cutting the link between the Ministry of Finance and it and changing its board of directors." He added, "These steps are taking place in coordination with the Central Bank, with the introduction of governance," noting that the Ministry of Finance is in the process of selecting a new director and board of directors for Rafidain Bank.
The former Director General of Financial Operations at the Central Bank of Iraq, Mahmoud Dagher, praises this step, stressing the need for it to be accompanied by its transfer to the private sector, an increase in its capital and a change of its name. He explained, "The Ministry of Finance's step is good to liberate government banks from the control of the public sector represented by the Ministry of Finance, especially since the law under which the bank operates is the Companies Law and a board of directors is supposed to work that has nothing to do with any party," noting that "the bank is governmental and for this reason." The decisions of the board of directors were approved by the Ministry of Finance and employees below the level of the minister sometimes imposed policies on them, especially debt issues that were not commensurate with the capabilities, performance and capital of the bank.
Total deposits 27 billion dollars
Dagher explained, "The Rafidain Bank is ancient, and it occupies the first place in terms of deposits, most of which are governmental," noting that "this step will allow it to return its capital because it is low, estimated at 130 billion dinars (89 million dollars), which is not commensurate with the size of its deposits. The amount is between 30 to 40 trillion dinars (from 20 to 27 billion dollars), and he stressed the need to convert it into a private joint-stock company, with a change of its name because it is one of the two banks that are subject to international sanctions preventing them from working flexible internationally,” calling for finding local investors or Foreigners participate in the development of the bank due to its advantages.
The two government-owned Rafidain and Al-Rasheed banks were subjected to international sanctions during the 1990s following the invasion of Kuwait by Saddam Hussein's regime, and they are still imposed on him in international dealings with them, especially with regard to the issue of remittances. Dagher believes that "the conversion of the bank to the private sector makes it immune to international claims, because the reason for international decisions on the Rafidain and Rasheed banks is because of the Iraqi government before 2003."
A late step with international pressure
He continues, "This step came late, as the International Monetary Fund and one of the international financial companies entered to liquidate the budget of the Rasheed and Rafidain banks and took a wide discussion, but there was no government courage to take such a decision for the interest that the Ministry of Finance and the Public Treasury reap by borrowing from this bank." Noting that "government banks do not keep pace with technology and do not have a large capital, so we can call them modern banks."
In turn, the specialist in economic affairs, Safwan Qusay, stresses the need to privatize government banks to develop their banking system and be able to enter the global banking market, while indicating that this step will develop the Iraqi economy. He added, "The process of privatizing Rafidain Bank and selling its shares is necessary to have a board of directors independent of the Ministry of Finance that can implement economic development away from government interference, and we are with the start of privatizing public banks in order for their government counterparts to operate with an investment mentality."
30 billion dollars outside banks
Qusay points out that "there are more than 30 billion dollars in savings for Iraqis away from the banking system, and the start of offering various banking products that will contribute to moving them towards the banking system, thus financing small, medium and large projects." He adds, "Partnership with international banks, with their local counterparts having an advanced level of technology, contributes to encouraging local, regional and international investment, especially that the initiation of the privatization process in public banks will make a leap for the Iraqi economy at the medium level."
He continues, "The Ministry of Finance is supervising the financial policy and the Central Bank is the one who will supervise the banks," noting that "the formation of independent boards of directors elected from shareholders working to manage this sector will lead to openness to international banks." He points out that "the Trade Bank of Iraq monopolizes the banking sector at a high rate because the government depends on it," stressing that "creating a strong competitor will lead to justice in the distribution of opportunities and competition between banks, which pushes the banking system towards integration. In addition, the Rafidain and Al-Rasheed banks need to be rehabilitated. And the introduction of technology and human resources that could not keep pace with modern mechanization systems.” He pointed out that “Al-Rafidain Bank has an international reputation and that the Central Bank is keen to rehabilitate these banks, and we expect it to be followed by the step of rehabilitating Al-Rasheed Bank.”
The plan has been in place since 2006
The economic advisor to the Prime Minister, Mazhar Muhammad Salih, confirms, "The plan to restructure banks has been in place since 2006, but great difficulties have faced the process of change, including the adoption of modern banking as a basis for the bank's work, which requires dealing with fewer employees and greater technology, which has met with negative resistance. Internal affairs from the bank itself,” noting that “there is a so-called financial restructuring, and this requires ridding the bank of a huge legacy of losses it incurred from the debts of the former regime that were supposed to have been settled within the 2004 Paris Club Agreement, in addition to the losses of wars.”
new capital
Saleh explained, "The recent war on ISIS terrorism and the exposure of many of the bank's branches to looting and burning requires the development of new capital, or a broader financial leverage that has the ability to absorb losses, and at the same time constitutes support in facing the risks of the bank's operations such as bad credits granted by the bank in different times, and it became difficult to collect and turned into a loss.”
The necessity of legal structuring
Saleh points out that “there is a necessity for legal structuring, which must give the bank’s board of directors sufficient legal strength and independence from the dominance of the Ministry of Finance, which has become even today’s staffing movement in the bank, for example, through it, and not the bank’s management, which weakened the board of directors and this requires Greater governance by separating management from ownership to ensure the efficiency and flexibility of the bank’s activities to achieve its goals and implement its sound banking policies.
On the level of international banking, "the bank needs broader banking standards in the field of compliance, governance, accounting and control in order to raise the level of dealing with international correspondent banks and restore its health in financing foreign trade for the private sector," according to Saleh, who indicated that reform is not an easy thing. He needs a strong will.
government supervision
In turn, a member of the Finance Committee, Jamal Cougar, stresses the need for both the public and private sectors to be present in the banking field and to be under the supervision of the government, while criticizing the work of government banks. He adds, "The mechanism that government banks rely on came as a result of the financial problems in the Iraqi state and the control of political parties over the government's joints." He stressed, "The banking system in the world has become more developed, and because of the wars we have been delayed, especially as the parties entered the financial battlefield and have banks and financial outlets."
US sanctions Iran-backed militias under weapons transfer ban
August 9, 2021
The US State Department issued a notice Monday of new sanctions against major Iran-backed militias in Syria and Iraq for violations of a US law that restricts weapons transfers involving Iran, Syria and North Korea.
The sanctions target Kataib Hezbollah, Asaib Ahl al-Haq and Lebanese Hezbollah, all three of which receive backing from Iran’s Islamic Revolutionary Guard Corps (IRGC).
Two Syrian entities, Wael Issa Trading Establishment and Ayman Al Sabbagh Trading, as well as three Russian firms, Charter Green Light Moscow, Asia-Invest LLC and NPP Pulsar LLC, were also targeted. The ban forbids US government departments, agencies and personnel from signing contracts with or from providing licenses or government assistance to the organizations.
The State Department said the organizations were sanctioned July 29 under the Iran, North Korea and Syria Nonproliferation Act.
The law was introduced in 2000 to allow Washington to single out individuals and organizations that transfer internationally controlled weapons to or from Iran. The legislation was later updated to include Syria and North Korea.
The sanctions follow a series of drone attacks on sensitive US military and intelligence sites in Iraq in recent months. The attacks have reportedly alarmed US officials.
In the wake of the chaotic multinational war against the Islamic State, Kataib Hezbollah, Asaib Ahl al-Haq and Lebanese Hezbollah have developed into arms of the IRGC’s reach into war-ravaged Iraq and Syria.
Their rise to prominence has raised concerns in the United States, Israel and the Gulf that Iran’s ballistic, drone and cruise missile technology could further proliferate toward the borders of Tehran’s rivals in the region.
In Iraq, a series of sporadic rocket barrages have raised the stakes for the remaining 2,500 US troops in the country. The harassment, believed to be carried out by Iran-linked militias, has killed two US personnel this year and injured several others.
The attacks picked up after President Donald Trump ordered the head of the IRGC’s expeditionary Quds Force, Iranian Maj. Gen. Qasem Soleimani, killed in a drone strike in Baghdad. The assassination also killed the de facto head of Iraq’s Popular Mobilization Front militias, Abu Mahdi al-Muhandis, who had close ties to Soleimani.
Iranian-designed ballistic missiles, drones and cruise missiles have also repeatedly targeted Saudi Arabia, while Iranian drones and naval mines have struck Israeli-linked vessels in the Gulf region, the United States and Israel have said. Iran has denied responsibility for the attacks.
Israel has conducted hundreds of airstrikes against suspected Iran-linked targets in Syria with US intelligence support in recent years. The strikes are largely aimed at stopping precision-guided missile kits and other Iranian technology from approaching Israeli borders, US officials have said.
Israel has also sabotaged a number of Iranian cargo ships in the region, many of which were set to deliver petroleum to Syria’s regime in violation of US and international sanctions.
It was not immediately clear why the Russian firms were targeted under the law.
Representatives of the State Department’s nonproliferation bureau were not immediately available Monday to return Al-Monitor’s request for comment.
The sanctions come as Biden administration officials are seeking to resume the next round of indirect negotiations with Iran in Vienna over its rapidly accelerating nuclear program.
The current US administration is seeking to return to an updated version of a 2015 international agreement with Iran known as the Joint Comprehensive Plan of Action, or JCPOA, which limited Tehran’s nuclear capabilities in exchange for sanctions relief.
The Trump administration unilaterally abandoned the deal in 2018 with the support of the governments of Israel and Saudi Arabia as Iran-backed militias and projectiles proliferated across the Middle East.
The original 2015 agreement did not include limits on Tehran’s conventional ballistic weapons or drone programs.
The sanctions imposed on Iran by the Trump administration did not deter Tehran’s ambitions in the region, US intelligence assessments have concluded.
Amer Al-Jawahiri to: Changing the value of the national currency at present .. economic confusion .. it should not be linked to additional unstable revenues
The consultant in industrial development, industrial cities and investment, Amer Al-Jawahiri, confirmed that: Changing the value of the national currency is currently...economic confusion..it should not be linked to additional, unstable revenues.
He told the National Iraqi News Agency ( NINA ) that: the change in the value of the national currency against other foreign currencies has not occurred since 2003 except twice, its price was 2500 and then to 1200, and it was changed at the end of last year, which means that during 17 years it was changed only twice.
Al-Jawahiri added that: the rise in oil prices is not fixed, it may rise for several months and decrease again, as happened previously. Noting that: Determining the economic and monetary paths does not depend on steps that occur for some months or seasons of the year.
He explained that: what is happening from changes in oil prices, we should not base them on a change in the amount of the Iraqi currency vis-à-vis other currencies, and not take place in short successive periods, and we do not advise continuing to think about the issue of the value of the currency vis-à-vis foreign currencies at the present time, because it confuses us, we need it.
CBI Update: Just a note:
including $90,030,000. CASH
ISX Update: Shares Traded: not updated for todayValue Traded: not updated for today
8-9-2021 Newshound Guru Breitling Until they start passing laws the White Paper means nothing. That's number one. Number two is Iraq doesn't need to pass any more laws for them to add value to their currency. What they need to do is just make sure they understand what the markets are as far as oil prices/futures are, be able to pay off their debt and then have enough information to add value to their currency...but economic reforms and stuff like that they don't need that to add value to their currency.
8-9-2021 Intel Guru BobTheTaxMan When you do "cash in" make sure you take care of your tax liabilities. The same day you get it done go take care of it. How do you know how much to pay? This is where you get professional help. You're going to go talk to someone who knows what they're doing. Tell them what you're doing. They'll be able to look at your tax returns and look at your income and figure out what you can expect to pay in anticipated taxes. And then go pay them!
8-9-2021 Intel Guru MarkZ [via PDK] Monday morning brings a week full of opportunities!...Hopefully we will know something by this evening on what we can expect in the way of currencies. To early in the day to talk to banks and redemption centers… They usually start their week with meetings... We are still getting fantastic news out of Iraq. They are still talking about the white papers …There were a number of good articles over the weekend…
8-9-2021 Newshound Guru Walkingstick [via Guru Frank26] The White Papers contain the new exchange rate. That's why everything is being adjusted and implemented with the White Papers. That's why Kazemi wants to talk to you citizens about the White Papers because they are educating you [The Iraqi citizens]...
8-9-2021 Intel Guru Frank26 Know when to hold'm and know WHY to fold'm because 1 to 1 is the sucker bet. 99.9% of you are gonna rush to the banks and you're going to exchange your currency because you've been waiting 3000 years to do it...
8-9-2021 Newshound/Intel Guru Mnt Goat ...We know that a couple of the provisions in the white paper are to stop the currency auctions and to finally complete the change over to the newer lower denomination (project to delete the zeros). But what we do not know is how long it will take them to do it. They did tell us the existing rate will remain to at least the end of this year. Is this a hint that maybe they are considering something in January 2022 as we know this is the best time to do a major revalue and reinstatement? But we can only speculate at this point...
Muharram/Islamic New Year 2021
Different dates in different countries, some common ones are:
Tue, Aug 10, 2021 – 22 countries
Mon, Aug 9, 2021 – Iraq and 6 other countries
Tue, Aug 10, 2021 / Wed, Aug 11, 2021 – Indonesia
Thu, Aug 12, 2021 – United Arab Emirates
Mon, Aug 9, 2021 / Tue, Aug 10, 2021 – Nigeria
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