WOTS MON DEC 13 21A new government statement regarding changing the dollar exchange rate during the 2022 budget
No My FX Buddies Podcast today but these are extra articles I would have discussed:
A new government statement regarding changing the dollar exchange rate during the 2022 budget
The financial and economic advisor to the Iraqi Prime Minister, Mazhar Muhammad Salih, commented today, Monday, that there is an intention to change the dollar exchange rate during .the 2022 budget
Saleh said, in a statement to (Baghdad Today), that "all statements about changing the exchange rate of the dollar or returning to the previous rate are incorrect, especially that the benefits of raising the price of the dollar are great and can never be neglected, and talking about changing ".the exchange rate has become a thing of the past
And he indicated that "the speculative price of a barrel of oil will be in the 2022 budget by about ".$50, which is less than the expected global price, which reaches $70 per barrel He explained that "the global price of oil depends on several global data, as well as the government's intention to raise the percentage of non-oil revenues and increase dependence on ".them
The Federal Court Postpones The Lawsuit To Cancel The Election Results To The 22nd Of This Month
On Monday, the Federal Supreme Court postponed the lawsuit to annul the election results submitted by the Al-Fateh Alliance to December 22.
The court had earlier held its special session to consider the appeals submitted by the Al-Fateh Alliance regarding the falsification of the results of the parliamentary elections.
And the Coordinating Framework's lawyer demanded the Federal Court during the session, to explain the reasons for making updates to the electoral devices contrary to the recommendations.
The Federal Supreme Court had set earlier, December 13, as the date to consider the appeal submitted by the Al-Fateh Alliance regarding the falsification of the election results and their cancellation.
Iraqi government official: Employees' salaries will not be affected by the annual inventory
Today, Monday, an Iraqi government official announced the cessation of granting credit and banking facilities in mid-December, noting at the same time that employees' salaries are not affected by the annual inventory.
The official told Shafak News Agency, "The bank credits and facilities will stop as of December 15th for the purposes of the annual inventory," noting that "the inventory will continue until January 15th."
He explained that "the credits obtained with the approval of the exchange will be disbursed, while the transactions in progress will be suspended until the opening of the departments again."
The official added, "The bank branches, during a period from December 15 to December 31 of the same month, collect their debts by approaching the state departments by paying the interest and debt installments that they have and not keeping any instruments they have from the current year, and not postponing them for the next year," pointing to "During this period, transfers and vacations also stop."
He pointed out that "saving accounts will be suspended from January 25 until the end of the special holiday on the occasion of the New Year, while current accounts will continue without interruption."
The official pointed out that "the salaries of employees will not be affected by the annual inventory, and the salaries of employees are not submitted for several days during this month," stressing that "the salaries that are financed exist and are downloaded to the current accounts that do not stop with the annual inventory.
Iraqi central bank reserves rise to $64 billion
ERBIL, Kurdistan Region - Iraq’s foreign currency reserves have risen by more than $10 billion as a result of higher oil prices, an official source told the state-owned newspaper on Monday.
The Iraqi central bank’s reserves have increased from $51.9 to $64 billion "due to a rise in the oil markets," an anonymous source from the bank told al-Sabah newspaper.
Record low oil prices during the pandemic last year contributed to a financial crisis in Iraq, but a recent boost in the oil market and the central bank’s decision in December to devalue the dinar have eased the crisis as the Iraqi government depends on oil revenues to cover its costs and pay the salaries of its civil servants.
Iraq exported over 98 million barrels of crude oil last month, bringing in $7.590 billion, the oil ministry said in its monthly report. In October, it increased exports by more than four million compared to the month before.
Iraq is one of the most corrupt countries in the world. In April, Prime Minister Mustafa al-Kadhimi said the government has “succeed in stopping the waste of money and corruption in the notorious central bank auction.”
Last year, the government announced a series of economic reforms titled the White Paper which includes financial, economic and institutional reforms.
The White Paper makes it clear that the causes of Iraq’s economic and financial woes date back several decades, providing a detailed outline of the factors that have distorted the country’s economy and its failure to keep pace with the economic developments the world has witnessed.
28% of the excess revenues from the rise in oil prices went to raise Iraq's reserves of hard currency.. The remainder will reduce the deficit by 66%
A year after the largest decline in the central bank’s reserves of hard currency during the last period, specifically in December 2020, which amounted to 57.5 billion dollars, the central bank’s reserves of hard currency rose in December 2021, a year later, to 64 billion dollars.
Al-Sabah newspaper quoted a senior source in the Central Bank that "the hard currency reserves owned by Iraq and located at the US Federal Bank rose to 64 billion dollars, due to the rise in the oil markets."
The source commented on the possible US decision to raise the interest rate on the dollar next year due to inflation, as "it will achieve great financial benefits for Iraq," which was confirmed by the financial advisor to the Prime Minister, Dr. Mazhar Muhammad Salih.
Saleh said that Iraq "will reap a great benefit in light of the new monetary policy of the United States of America, because the Central Bank of Iraq invests its foreign reserves in the United States, which provides the highest returns and lower risks."
While the central bank’s reserves increased from about 57 billion to 64 billion, this means that 7 billion dollars were added to the central bank’s reserves as a surplus of oil revenues, which Iraq did not have to use in its operating and investment expenses during 2021, which represents an increase of about 11%.
The surplus funds that are supposed to be reaped from the rise in oil prices are estimated at about 25 billion dollars, while the budget deficit is estimated at 19 billion dollars. On the other hand, the deficit has increased invisibly, due to the failure to achieve non-oil revenues as planned, as it was planned to achieve revenues However, only about 6 billion dollars were achieved until the end of this year, so the deficit increased by an additional 8 billion dollars, bringing the total deficit from 19 billion to 27 billion dollars.
A deficit of $27 billion and a surplus of $25 billion. Of this surplus, $7 billion, or about 28% of it, went to boost the Central Bank’s reserves, while the remainder of it was about $18 billion, which does not cover the deficit of about $27 billion and will cover part of it, and the remaining $9 billion An additional deficit caused by non-oil revenues that did not come as planned, which means that the budget deficit decreased by 66% only due to the rise in oil prices, from 27 billion dollars to 9 billion dollars only
Forecasts of the effects of changes in the global economy on the Iraqi economy in 2025
Since the first quarter of 2020, the Iraqi economy has complex and accumulated challenges due to changes in the global economy and the slowdown in global economic growth due to the conditions of the US-Chinese conflict, the Corona pandemic, the drop in global oil prices in 2020, and its decline in rates of more than 70%, economic stagnation, and most countries of the world were affected by these repercussions, which It had its effects on the Iraqi economy, and what concerns us is what are the results of these repercussions and what are the expectations, effects and repercussions on the current economic reality in Iraq during the coming years until 2025.
In the light of the study and analysis, Mayati can be expected at the level of the global economic system and its repercussions on Iraq:-
1- A decrease in growth rates is expected in the American economy and the economies of the European Union countries, as well as in China, but at lower rates, and recession and economic stagnation will prevail in most countries in the world. And the non-oil producing countries, especially after the new mutation of Corona entered more than 60 countries now, and it is expected that the number of countries will increase and it will certainly reach the Arab region and Iraq. Also, the inability of our health systems to withstand and confront will cause prices to rise, unemployment will increase, the number of those below the poverty line will double and citizens in different economic sectors will lose their jobs
The new global economic system that humanity is waiting to appear after the Corona crisis will inevitably be formed and will have clear economic and financial leadership for America and China, and the Silk Road will activate to include the countries that it was planned to go through to revive their economies, including Iraq and some Arab countries, and that this has positive and negative repercussions on the economy.
3- Likewise, the philosophy of economic management will, in most cases, shift from a capitalist market economy to a social market economy that is currently adopted as a disciplined ideology, as in China, and to state capitalism in Eastern Europe, as is the philosophy of Russia now.
They are just early expectations, and the Arab economy will mostly be dependent on the new, largest and most powerful economic pole, so what is required of the economic decision-makers in the countries of Iraq regarding these developments and changes that will sweep the world economically.
I see, with a penetrating analytical view of the current economic reality, that we urgently need a radical comprehensive economic change that adopts the following main axes:-
First - Re-change the map of national income resources by reducing dependence on oil as a major resource by activating other resources during the next four years, to bring them to 30% and to 50% within the next ten years of the total resources.
Second, a radical and comprehensive change of agricultural, industrial, commercial, oil and water policies by adopting local resources in securing food security, encouraging, protecting and supporting the Arab and Iraqi local product, setting programs and strategies in consumer protection, and emphasizing Arab economic integration.
Third - Supporting, developing and motivating the private sector and benefiting from its capabilities, capabilities, capital and investments in building the national economy and involving it in economic decision-making and management of the economy.
Fourth - Drawing clear strategies for coordination between monetary and financial policies, drawing clear financial policies, and restoring the foundations for preparing and presenting annual public budgets on the basis of programs and not items.
Fifth- Develop a new methodology to overcome the challenges of instability in the financial system and the monetary system, which means developing coordination and balanced plans to overcome the challenges of monetary policy and the challenges of the deficit in non-oil revenue, the deficit in the balance of payments and the trade balance, and the contribution rate of the productive sectors (real economy in GDP).
* Advisor to the Association of Iraqi Private Banks
Below here is the WOTS the Word on the Street Report for December 13th, 2021
Publishes the dollar exchange rate on the local stock exchange on Monday, (December 13, 2021), according to the monitoring of specialists.
Baghdad - the stock exchange
148,200
....
The price in most Baghdad exchanges
Purchase
147,750
sale
148,500
———————————
Erbil - Bursa
148,200
————————————-
Basra - Bursa
148,250
———————————
Najaf - Bursa
148,250
————————————-
Mosul - Bursa
148,300
Favorite Currencies Forex Quotes
| Symbol | Bid | Ask | High | Low | Open | Change | Time |
|---|---|---|---|---|---|---|---|
| USD/IQD |  1429.6000 |  1482.8000 | 1452.9000 | 1452.9000 | 1452.9000 | -5.5000 | 15:21 |
| USD/VND | 22975.0000 | 22985.0000 | 22998.8300 | 22988.4900 | 22998.8300 | -12.5600 | 00:48 |
| USD/CNY | 6.3635 | 6.3657 | 6.3693 | 6.3583 | 6.3693 | -0.0054 | 05:11 |
| USD/KWD | 0.3025 | 0.3035 | 0.3026 | 0.3023 | 0.3026 | -0.0003 | 05:23 |
| GBP/USD |  1.3254 | 1.3255 | 1.3260 | 1.3221 | 1.3238 | -0.0013 | 05:25 |
| USD/IRR | 42025.0000 | 42525.0000 | 42232.1000 | 42203.5000 | 42232.1000 | 0.0000 | 00:00 |
| USD/IDR | 14322.0000 | 14327.0000 | 14355.0000 | 14297.0000 | 14352.0000 | -27.0000 | 05:22 |
Stock futures rise after S&P 500 notches best week since February at record high
European stocks rise as monetary policy decisions take center stage
Oil Minister meets with French Ambassador to promote joint cooperation in the field of oil, gas and energy
On Monday, Oil Minister Ihsan Abdul-Jabbar Ismail discussed with the French Ambassador in Baghdad Eric Chevalier the strengthening of joint cooperation in the field of oil, gas and energy.
And the Ministry of Oil said in a statement that "Al-Iqtisad News" received a copy of it, that "Minister Ismail received the French ambassador in Baghdad Eric Chevalier, and during the meeting, they discussed strengthening joint cooperation in the field of oil, gas and energy."
The Minister of Oil stressed, "Iraq's keenness to implement investment projects in the fields of oil, gas and energy in cooperation with French companies to develop the national economy."
For his part, the French ambassador said that "his country's companies wish to develop prospects for joint cooperation with Iraq in all fields concerned with the oil, gas and energy industry
The Federal Court Postpones The Lawsuit To Cancel The Election Results To The 22nd Of This Month
On Monday, the Federal Supreme Court postponed the lawsuit to annul the election results submitted by the Al-Fateh Alliance to December 22.
The court had earlier held its special session to consider the appeals submitted by the Al-Fateh Alliance regarding the falsification of the results of the parliamentary elections.
And the Coordinating Framework's lawyer demanded the Federal Court during the session, to explain the reasons for making updates to the electoral devices contrary to the recommendations.
The Federal Supreme Court had set earlier, December 13, as the date to consider the appeal submitted by the Al-Fateh Alliance regarding the falsification of the election results and their cancellation.
The Information” Reveals The Details And Features Of The 2022 Budget And The Date Of Its Submission To Parliament
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, ruled out, on Monday, a proposal to change the dollar exchange rate during the current budget, indicating that the 2022 budget is ready for voting.
Saleh said in a statement to "The Information" that "all statements about changing the dollar exchange rate or returning to the previous rate are incorrect, indicating that "the benefits of raising the dollar price are great and can never be neglected, and talking about changing the exchange rate has become a thing of the past."
He explained that "the speculative price of a barrel of oil will be in the 2022 budget by about $50, which is less than the expected global price, which amounts to $70 per barrel," noting that "the global price of oil depends on several global data, as well as the government's intention to raise non-revenue rates." oil and increasing dependence on it.
Saleh added, "The government will present the budget ready to Parliament as soon as the constitutional procedures for the elections are completed," noting that "the budget witnessed some changes until the number allocated to it is not very different from the 2021 budget."
The Information” Reveals The Details And Features Of The 2022 Budget And The Date Of Its Submission To Parliament
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, ruled out, on Monday, a proposal to change the dollar exchange rate during the current budget, indicating that the 2022 budget is ready for voting.
Saleh said in a statement to "The Information" that "all statements about changing the dollar exchange rate or returning to the previous rate are incorrect, indicating that "the benefits of raising the dollar price are great and can never be neglected, and talking about changing the exchange rate has become a thing of the past."
He explained that "the speculative price of a barrel of oil will be in the 2022 budget by about $50, which is less than the expected global price, which amounts to $70 per barrel," noting that "the global price of oil depends on several global data, as well as the government's intention to raise non-revenue rates." oil and increasing dependence on it.
Saleh added, "The government will present the budget ready to Parliament as soon as the constitutional procedures for the elections are completed," noting that "the budget witnessed some changes until the number allocated to it is not very different from the 2021 budget."
CBI Update: Just a note:
including $47,310,000. CASH
ISX Update: Shares Traded: not updated for todayValue Traded: not updated for today
12-12-2021 Intel Guru Frank26 [Iraq boots-on-the-ground TV update] FIREFLY: All news today has been about Barzani from Kurdistan. He's been meeting with the house speaker...about the Erbil deal. They're saying they're making sure all parties are working to make the agreement work as they will be addressed when the budget and the rate is reviewed sometime in the early part of 2022. They're saying that the Erbil agreement will have a huge impact and allow citizens to receive oil as promised to them by our constitution. FRANK: ...The HCL is part of the economic reform because it is also in the white papers...
12-12-2021 Intel Guru BobTheTaxMan Ways to save on this anticipated gain coming from our IQD investment...we have three objectives. 1. Reduce Taxes any way we possibly can. To do that you look at income, capital gain taxes, estate taxes. Those are the things we want to reduce as much as possible. 2. Defer - ...we have a variables. A. We don't know when. B. We don't know a rate...when this thing comes out let's just say it's a dollar...If...you don't want to have to cash in your IQD at that moment and be exposed to that huge taxation this is where a Charitable Remainder Unitrust (CRUT) comes into play. It defers that taxable event until later. The last one which is my favorite 3. Eliminate them. I don't want to pay taxes on this gain in any way shape or form and the way you do that is with the Roth... [NOTE: Consult your tax professionals at the appropriate time to determine the correct tax for your unique exchange strategy.]
12-12-2021 Intel Guru Holly ...I had the best news yesterday of tangible evidence this is close to completion. I will not give specifics as we are close and need to let things unfold. All I can say it is happening, get ready...
12-12-2021 Intel Guru Frank26 IMO there are a lot of [Central Bank of Iraq] satellite banks [inside the United States] that are being worked on as we speak right now. And it's only because Iraq is Article VIII. And it's only because the new budget has the new exchange rate and the white papers have it too...we are so close and right now all the banks in the world are meeting with the CBI...because they are about to lift the value of their currency and they want their 3-zero notes back from everybody.
12-12-2021 Newshound Guru Pimpy Article: Throwback - The first time they lifted Chapter 7 2013 "With Chapter 7 Lifted, Iraq Regains Control of Its Own Economy" Quote: "the lifting of Chapter 7 sanctions last month can be considered one of Iraq's biggest achievements...allowing Baghdad to regain control over its own currency, oil and economy." Quote: "One of the biggest advantages of the lifting of the sanction is the return of all frozen assets to the Iraq government estimated somewhere around $82 billion according to the Central Bank data. Its return will not only revitalize the economy it will strengthen the value of the Iraqi dinar and increase its purchasing power." There's reason to be happy. There's reasons to be excited...but stay grounded...there's no date there. There's no rate there. It merely tells you what happens once Iraq is removed from Chapter 7... [Post 2 of 2]
12-12-2021 Newshound Guru Pimpy Article: "Chairman of the Committee of Financial Experts Abdul Basit Turki, reviled today Thursday, that the US Federal Reserve has stopped the automatic deduction from Iraqi oil revenues in favor of Kuwait's compensation" Quote: "After that [Making the final payment], Iraq will submit a request to the General Secretariat of the United Nations requesting that it be removed from the provisions of Chapter VII of the UN charter." Chapter VII is major. It's so big it's one of the biggest steps we need to take in order for Iraq to do any type of rate change...be happy. Be a little excited but don't go overboard. We have no idea what's going to happen...We don't know what they're going to do until they do it. [Post 1 of 2....stay tuned]
12-12-2021 Newshound Guru MilitiaMan Article: "Planning determines the priority of projects in the 2022 budget" Quote: "There are more than 6000 projects under implementation,..." The money at to which these projects will be completed could not be completed if at a program rate. imo... They will require the new exchange rate that will support the
reconstruction effort. The new system in place at the borders will add massive revenue streams, just as the liquid natural gas that is being sold... All of it and much more will add to the bottom line for the new real effective exchange rate (REER) to come. There is no reason to have small category notes while at a program rate. We know they have told the citizens on TV about small notes. This article is additional support a rate change is imminent...imo.
Prime Minister Mustafa Al-Kazemi receives a phone call from the Crown Prince of the Kingdom of Saudi Arabia, Prince Muhammad bin Salman
ARTICLE 5
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