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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

Follow-up cell: The government may resort to borrowing and printing currency to provide salaries

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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty A member of the Parliamentary Finance reveals the size of Iraq's debts and is likely not to approve the 2020 budget

Post by claud39 on Wed May 20, 2020 9:59 pm

A member of the Parliamentary Finance reveals the size of Iraq's debts and is likely not to approve the 2020 budget


05/20/2020


Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 121874


Baghdad today - Baghdad Member of the Parliamentary Finance Committee, Muhammad Sahib al-Daraji, confirmed on Tuesday (19 May 2020) that Iraq’s debts amounted to 124 billion dollars, while the budget of 
.2020 was unlikely to be approved Daraji said during his hosting of the program (the shortest path) 

(https://www.facebook.com/NabilJassim.Official/videos/2458849454428390/) presented by Dr. Nabil Jassem on Al Sharqiya Channel News, "Iraq’s debts currently amounted to 124 billion dollars, while expenditures in 2019 amounted to approximately 116 trillion dinars," ".noting that "the debts owed by Iraq include what is due to us from the Kuwait war


He added that "the previous government erred when it agreed to reduce oil production because it caused great losses," calling on "Prime Minister Mustafa Al-Kazemi, to take a decisive position on this decision after the appointment of a new oil minister, even if we had ".to leave the OPEC agreement He pointed out that "there are many solutions that must be followed to save the country from the economic crisis it is going through, including preventing speculation with food and not importing products except the necessary things, as well as imposing control on the border ports by the Iraqi government to ensure that unnecessary products are not imported." It is "possible to achieve this by supporting the anti-terror agency because there are large ".(militias) controlling these outlets He continued: "The exchange rate of the currency must be changed, and the direct sale to the citizens should be taken instead of the auction, and external relations must be exploited and worked to improve them," stressing that "it is necessary to review Iraq’s decision on ".reducing oil, and to return from it regardless of circumstances On the budget, Darraji commented: "The circumstances Iraq is going through are difficult, ".and the possibility of passing the 2020 budget, so far, is not certain



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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty A proposal on the government table to face the !parliamentary economic and financial crisis warns

Post by claud39 on Wed May 20, 2020 10:06 pm

A proposal on the government table to face the !parliamentary economic and financial crisis warns


05/20/2020 


Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 121911



Baghdad today - special The decision of the Parliamentary Finance Committee, Ahmed Al-Saffar, on Wednesday (May 20, 2020), warned against demands to raise the price of the dollar against the Iraqi dinar to confront the financial crisis and maintain the hard currency, stressing that this decision is not .in the interest of the Iraqi financial system Al-Saffar said in an interview with (Baghdad today) that "raising the dollar exchange rate to face the financial crisis and preserve the hard currency is one of the proposals and monetary ".

measures that the state may take to avoid the liquidity crisis He added, "It is not in the interest of the financial system to raise the exchange rate of the dollar because it will lead to a decrease in the Iraqi dinar price and a decrease in purchasing power and will lead to inflation," noting that "the classes with limited income and those with ".salaries will be the first affected by this decision


Al-Saffar pointed out that "raising the price of the dollar depends on the government's ability ".to apply the necessary public spending from other sources The economist, Rasem Al-Akidi, warned, Thursday (14 May 2020), of floating the Iraqi dinar against the dollar, that is, reducing the value of the Iraqi dinar against the dollar according to a proposal put forward by economists to provide additional funds for the Iraqi budget to be .paid as salaries for employees Al-Aqidi said in an interview with (Baghdad Today), "The issuance of any decision to float the dinar against the dollar in light of the current conditions in Iraq is very dangerous for the country which is basically suffering from uncontrollable losses, namely fees, customs, taxes ".

and many other financial resources And that "the flotation does not constitute an increase in the value of the Iraqi dinar, but rather we will see an increase in the exchange rates of the dollar due to the lack of its ".acquisition in the global market, especially with the decline in global oil prices He added that "the flotation will lead to a significant increase in prices, and will be paid by the poor," noting that "the flotation is taken in light of the stable financial conditions of the state, as well as the diversification of the economy and its dependence on resources other ".

than oil Al-Akidi said that "floating the dinar against the dollar is launching the process of buying and selling without any limits, and the country will face an unprecedented rise in prices with limited and steady salaries, so conditions will be more difficult, especially in the humanitarian ".context


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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty Financial and Banking Adviser Professor Abdel-Nafea Al-Zirri for Time: The crisis will last, Iraq’s options are difficult, and the solution will be in an authorized economic council. On a round table

Post by claud39 on Thu May 21, 2020 12:28 pm

Financial and Banking Adviser Professor Abdel-Nafea Al-Zirri for Time: The crisis will last, Iraq’s options are difficult, and the solution will be in an authorized economic council. On a round table
 
April 26, 2020



Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 56.46-388x462
 
The interview was conducted by: Saad Al-Sayegh

April 26, 2020
 
The financial and banking expert, Professor Nafie Al-Zirri, revealed huge economic failures that cannot be covered using   economic patterns And the current management of the current, and that the country needs urgent remedies, including the establishment of a higher economic council on A round table with effective powers and decisions in force, and Al-Zuhri is a banking and financial consultant and an Iraqi professor In banking and finance.

  
He served in Iraqi universities and research centers for three decades  and now works at a Jordanian university until he returns Oil prices will do great harm to economic and financial frameworks in the country with a clear unilateralism in the economy. He added, in an interview with Al-Zaman newspaper in its international edition, that it is The depletion of financial resources will continue in the future, and the economic situation in Iraq will remain unstable, if management changes remain Political, economic and financial The country's cash operates in the same current fashion. 


He called for reducing salaries, especially special grades and excess spending, in the context of measures to be taken to reduce harm On the country.
 
Al-Zirri suggested that the next government would resort to borrowing from the World Bank or the Central Bank in the current period Because there are no options before it, as the current economic and financial policies will put the next government in place In front of this option, which will increase the proportion of the net debt burden on the government, which will bear the results of the citizen in the future . 


The consultant Al-Zirri stressed the necessity of activating and implementing the anti-corruption system and recovering the stolen or possessed funds Certain. In the text of the interview follows : ‭ ‬ 


... Iraq is one of the countries that was greatly affected by the drop in world oil prices due to the Corona pandemic It will stop the commercial, financial and economic movement in Iraq. What is your assessment of that? ...

Iraq received significant revenue from the sale of oil, estimated at more than one trillion dollars, which was not invested in any way A sound economist is accompanied by a decline in the performance of the economy. Rather, financial and administrative corruption and mismanagement have played a role Great in deepening this great burden. The unemployment rate has risen to more than 30% ( and this ratio varies between provinces )On the one hand, and the existence of inflationary pressures, on the other, the most profound economic and social problems, which constitute a challenge Great for comprehensive economic and social development. The Iraqi economy has become among the tough options in fighting unemployment, inflation, administrative and financial corruption. Sagging successive governments and mismanagement at the center and provincial levels, not to mention the failure of industrial production systems Including agricultural and waste in human, natural and financial resources. Therefore, the containment of these repercussions became not an easy or easy matter in the light of quotas and corruption; this requires A true political administration for Iraq is based on wisdom, efficiency, and logic to emerge from this long-running crisis.  Events came recent decline in oil prices due to international political and economic conflicts , including Fsad oil supply;   then followed by the occurrence of the global epidemic ( Corona ) ; led to a decline in global demand for oil On the one hand, with the increase in the conflict, which resulted in an increase in the oil supply, as we indicated, it led to a significant decline Surprisingly, oil prices have resulted in a significant drop in oil revenues Iraq     ( which accounts for about 90 % of its revenues )It has contributed to the deepening of the crisis. This all led to an increase in the public budget deficit, which is estimated at more than sixty billion dollars within the budget 2020 . In addition, there are very modest alternative resources in the contribution of non-oil sectors to GDP And the achievement of financial resources; this puts us at a critical juncture, which will have economic, political and social consequences Do not thank her in Iraq. 


We have become the employees ' salaries close to 4 billion dollars a month; this means that the oil revenues , according to The current prices will cover approximately one third for a period of only three months. Not to mention the dumping of the Iraqi market with goods from various countries of the world, especially the neighboring countries; Almost completely local industrial production with the deterioration of the conditions of the agricultural sector despite the availability of water and fertile land. All of this creates pressure and drain on the hard currency reserve.


The bottom line . Iraq will suffer from a host of problems and challenges, and it will swirl in a whirlpool, which is held hostage by chaos, corruption and misfortune Financial, economic, and even political management, under successive flaccid and weak government administration.


... Designated Prime Minister Mustafa Al-Kazemi faces a major economic crisis that will limit his ability to implement his government program for a while He assumed the premiership. What is the way to face this crisis? ...


He will face the next prime minister - designate ( Mustafa Kazmi ) several crises , real deep; deepened Its roots during the past few years, including a major economic and financial crisis in addition to the unemployment and inflation crisis Recession, where unemployment will remain an imbalance in the human security system in Iraq in light of the increasing population Poor economic and financial planning and rentier economy remained the only provider Not more than 1% of available employment. 


  Since the Iraqi economy is the yield economy , which depends on oil revenues, making fiscal ( especially spending power )Highly affected by the decline in current oil prices, which will affect spending on development projects.


This oil shock will affect the structure of public expenditures, and above all, investment expenditures in a way Deep and clear, which will deepen the economic recession and unemployment and constitute an economic and social instability in addition to the existence Political chaos originally. 


It will also adversely affect current expenditures, but its relative importance will remain very high by comparison With investment expenditures; for this reason, the depletion of financial resources will continue in the future and the economic situation in Iraq will remain unclear Stable, if the   state's political, economic, financial and monetary management variables remain operating in the same current pattern.


... In the budget 2020 prepared by the government of Abdul - Mahdi article before falling oil prices and the fiscal deficit is estimated at 40 billion. What will be the next mechanism that will be followed by the Al-Kazemi government? ...


Iraq has many economic non - oil resources (natural, human and financial ) if It exploited efficiently ( as the efficiency of government management of the economy   appear under the scarcity of resources )  Where the government can work to activate and develop non-oil income sources and find hedging means from This would make public revenues safer, more stable and more independent than unilateral domination of state treasury resources.


 Activating the development of the agricultural sector, both plant and animal, with interest and focus on manufacturing industries in small industries Medium and even large and the adoption of a policy of import substitution in the current and upcoming period; would stimulate development and creates significant financial resources to the state treasury ( that successive governments have neglected the supply side , a production and investment )As well as interest in the tourism sector. The next government should set a future hedging policy that will address future imbalances in the nation's public resources. It also requires the rehabilitation of projects and companies that existed and neglected ( due to war conditions ) Which depends on the available local raw materials, which must be supported in order to enhance local production to meet the demand The market while reducing the dependence on the importer; rather, developing a strategy for future export purposes for these commodities Where its raw materials are available in Iraq.   It also requires reduction of current expenditures ( special grades and salaries Rafha salaries )As well as travel and Alaivadat administrative expenses and expenses ( rationalization of public expenditures ) down to the optimal use Available financial resources.   It also requires activating the general economic policies in order not to leave the burden of confrontation only on fiscal policy. Here, the private sector must be supported and investment opportunities stimulated to become an active participant in building development projects Economic support and providing all means of support for it; this should be in line with the restructuring of the body’s work National investment and its mechanisms of work, with its leadership assuming skilled economists who are competent and experienced in investment management.


... Will the next government resort to borrowing from the World Bank to meet its need for salary insurance and card voucher insurance? Supply and general services. What is the alternative to borrowing from the World Bank? ...


Yes, the next government will resort to borrowing from the World Bank or the Central Bank in the current period, because it is There are no options before it, as the current economic and financial policies will put Al-Kazemi’s government in front of this option Which will increase the proportion of the net debt burden on the government, which will bear the results of the citizen in the future. Here, I stress the necessity of activating and implementing the anti-corruption system and recovering the stolen or possessed property of certain entities . ‭ ‬ 


... The Central Bank of Iraq is managed by more than one political party, and the bank is subject to partisan quotas and imposition of ill-considered mechanisms In buying and selling hard currency, and this led to the bank not keeping a balance allocated to meet the emergency conditions ? ...

I have raised many issues about the independence of the Central Bank of Iraq and the role and function of the reserve on the one hand and financing the budget deficit The public on the other hand. This issue is one of the most contentious issues in the sense of removing influences or interventions from monetary policy decisions And fiduciary. 



It is necessary to make monetary policy and central bank measures even independent of fiscal policy.


... How is it going? ...


To be under the influence of the pressure of the blocs and parties that are in fact the executive branch, especially when the government is Weak; therefore, the factors affecting the independence of the central bank, which is the backbone of the system, must be identified Iraqi banker.


 The existing problem is the immaturity of relations between legislative and economic indicators on the one hand and the independence of the Central Bank of On the other hand, and therefore the need to address it. The appointment and dismissal of the governor and members of the council is by a decision of the government that implements its policies according to the pressure of the blocs and parties Influential. 


The independence of the central bank is the independence of the administration and its ability to set monetary policy goals away from political pressure Partisan and sectarian interests and their external links. 


[size=24]The problems of the Central Bank of Iraq began with the government when the government requested funds from the bank's reserves; the former governor of the Central Bank   ( Shabib ) , who resigned this was rejected as rejected style Auctions on the dollar and the influence of floating commercial banks from well-known political parties,which has led to pressures on it To his resignation. 

[/size]
One of the documented studies on the independence of the Central Bank of Iraq shows that there is a weakness in the degree of independence, especially Appointing and dismissing the governor and the council. 


This indicates the presence of negative effects in the index of appointing and dismissing the governor and members of the council, as well as what is related to drawing And formulating monetary and credit policies, especially the policy related to currency auctions, and as a result of the current circumstances and restricting hard currency due to The decline in oil revenues from the dollar; the sale of the currency must be limited to both Rafidain Bank And the rational; and that commercial banks can take their share of these Banks in proportion to the volume of trade transactions.   

The fixed exchange rate system ( approved realistically by the Central Bank )It was in the interests of the heavily influential private commercial banks and helped to foreign exchange the hard currency and in favor of certain parties ( the activities of the hidden economy and state deep ) .



 The monetary policy adopted by the Central Bank of Iraq by selling the dollar in daily auctions on the pretext of valuable support The Iraqi dinar is an old traditional policy that is not fooled by professionals.

The dinar values of support and stability of its value is achieved through the creation of a local commodity and service expenses to the market ( ie activation and support for the industrial sector and agricultural production ). 

... Where is the central role through its policies to support these sectors to create stability in the value of the Iraqi dinar? ...




The dollar amount sold has remarkably increased by more than 400% .   And documented studies have also proven that the continuing differences between the parties and the political blocs influencing their interests and implementation Certain agendas negatively reflected on this phenomenon. Therefore, I think it is necessary to stop dollar sales through the auction due to the decline in oil revenues from the dollar It is not logical to increase oil sales, decrease the proceeds of the dollar sale on the one hand, and keep the auction on Currency in this way that leads to depleting reserves of hard currencies. 


... Iraq lacks an integrated economic and financial council of expertise, competence, and integrity to develop economic policies to counter crises Future and avoid fiscal deficit. What is your assessment; and what are your proposals to get out of the crisis, in the absence of specialized economic and financial personalities? To develop an integrated economic and financial strategy? ... 

Certainly, the presence of an integrated economic and financial council of specialists with competence and experience is important for formulating strategies and setting The procedures to achieve this goal, provided that this council is in accordance with the round table until it is Each member has an active role in discussions and expressing opinions in order to diagnose problems and obstacles with full transparency Place and place the procedures subject to implementation and follow up and monitor their implementation




https://www.azzaman.com/%D8%A7%D8%B3%D8%AA%D8%B4%D8%A7%D8%B1%D9%8A%E2%80%AD-%E2%80%AC%D8%A7%D9%84%D9%85%D8%A7%D9%84%E2%80%AD-%E2%80%AC%D9%88%D8%A7%D9%84%D9%85%D8%B5%D8%A7%D8%B1%D9%81%E2%80%AD-%E2%80%AC%D8%A7%D9%84%D8%A8/
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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty Re: Follow-up cell: The government may resort to borrowing and printing currency to provide salaries

Post by Jayzze on Fri May 22, 2020 8:00 am

if they are so broke as they claim how can they pay for the printing of new money number one and number two this takes time as iraq tanks unless they do something elsee
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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty What does it mean to reduce the Iraqi dinar price against the dollar? .. An economist answers

Post by claud39 on Fri May 29, 2020 1:25 pm

[size=30]What does it mean to reduce the Iraqi dinar price against the dollar? .. An economist answers[/size]




2020.05.28





Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 E8db23d01-31734-202005280416










Baghdad - people 

  

On Thursday, economist and academic expert Nabil Al-Marsoumi expected a set of results if the proposal to reduce the price of the Iraqi dinar against the dollar was applied to counter the financial crisis. 

  

"If the Iraqi dinar exchange rate is reduced substantially by 25%, for example, the economies of some of the countries neighboring Iraq that export to it more than 20 billion dollars will be severely damaged," said Al-Marsoumi, an academic at the University of Basra. Annually, because the cost of its exports to Iraq will become high and its competitive capabilities in the Iraqi market will decrease, which is an important brake on taking this type of policy due to the strong influence that neighboring countries possess in Iraq. 

 

He added, "Given the lack of flexibility of the production base and its limitations in Iraq, the prices of imported goods will rise in the short term, especially, but in the medium and long term this may constitute an incentive to activate the role of the private sector in establishing projects producing consumer goods, especially food, to cover the needs of the Iraqi market, which will lead to lower prices. Later". 

 

He continued, "The government revenues denominated in the Iraqi dinar will increase by the same percentage of the dinar price, which will increase its ability to cover public expenditures and maintain the cash reserves of the Iraqi Central Bank from erosion." 

 

He pointed to another point which is that "putting an end to the flight of capital in view of the low value of the dollar in the face of the dinar, as well as reducing Iraqi investments abroad, especially in real estate and reducing Iraqi deposits in foreign banks, as well as the relative reduction of money laundering operations in Iraq."

  

In this regard, the decree expected that "reducing foreign labor in Iraq, as work becomes less feasible on the one hand, and foreign labor becomes more expensive compared to national employment."   





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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty What does it mean to reduce the Iraqi dinar price against the dollar? .. An economist answers

Post by claud39 on Fri May 29, 2020 1:29 pm

[size=30]What does it mean to reduce the Iraqi dinar price against the dollar? .. An economist answers[/size]




2020.05.28



Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 E8db23d01-31734-202005280416



Baghdad - people 
  
On Thursday, economist and academic expert Nabil Al-Marsoumi expected a set of results if the proposal to reduce the price of the Iraqi dinar against the dollar was applied to counter the financial crisis.  
 
"If the Iraqi dinar exchange rate is reduced substantially by 25%, for example, the economies of some of the countries neighboring Iraq that export to it more than 20 billion dollars will be severely damaged," said Al-Marsoumi, an academic at the University of Basra. Annually, because the cost of its exports to Iraq will become high and its competitive capabilities in the Iraqi market will decrease, which is an important brake on taking this type of policy due to the strong influence that neighboring countries possess in Iraq. 
 
He added, "Given the lack of flexibility of the production base and its limitations in Iraq, the prices of imported goods will rise in the short term, especially, but in the medium and long term this may constitute an incentive to activate the role of the private sector in establishing projects producing consumer goods, especially food, to cover the needs of the Iraqi market, which will lead to lower prices. Later".
  
He continued, "The government revenues denominated in the Iraqi dinar will increase by the same percentage of the dinar price, which will increase its ability to cover public expenditures and maintain the cash reserves of the Iraqi Central Bank from erosion." 
 
He pointed to another point which is that "putting an end to the flight of capital in view of the low value of the dollar in the face of the dinar, as well as reducing Iraqi investments abroad, especially in real estate and reducing Iraqi deposits in foreign banks, as well as the relative reduction of money laundering operations in Iraq."
  
In this regard, the decree expected that "reducing foreign labor in Iraq, as work becomes less feasible on the one hand, and foreign labor becomes more expensive compared to national employment."   


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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty Economist: We are facing a fatal crisis and reveals 54 trillion dinars in banks and individuals

Post by claud39 on Fri May 29, 2020 1:56 pm

Economist: We are facing a fatal crisis and reveals 54 trillion dinars in banks and individuals






  • 05/28 2020








Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 37008




{Baghdad: Al Furat News} The economic expert, Alaa Al-Fahd, described the current economic crisis in the country as a “lethal”, while revealing that there were 54 trillion dinars in banks and individuals.


"The government is currently studying several tools for the state's financial policy, including internal tools by trying to diversify revenues for other sectors and revitalize them, such as the industrial and agricultural sectors, and the participation of the private sector, which can contribute to providing the state and operating many stalled projects," Al-Fahd said.
 
He added, "There are several tools on the table of the government and parliament, including the direction of revitalizing the private sector and supporting it to be a partner of the state," noting that "the economic crisis due to the reduction of oil prices in Iraq is not a result of today, and in every drop we notice the government resorting to reducing expenditures."

Al-Fahd pointed out that "this crisis is the most deadly in the Iraqi economy, especially its entry with the Corona pandemic crisis, which are multiple challenges that may portend two financial and health catastrophes, so there should be diversification of revenues and rationalization in spending, and this is confirmed by the report of the International Fund by having multiple jobs with more than 250 thousand jobs and horizons can be pressured according to productivity, "stressing," The government seeks to work on this by adopting the 2020 budget law. "

He continued, "All the solutions currently presented are immediate solutions, either resorting to internal or external loans by selling bonds or resorting to funds funds in addition to the trust accounts with the ministries, which have not been disposed of until now."

Al-Fahd noted that "Finance Minister Ali Abdul Amir Allawi has experience in managing the financial file during previous years through which tools and alternatives can be found that contribute to supplying the budget," asking, "Are these solutions close to reality, especially since banks are mostly idle and the cash block is mostly at homes?" ? "

He revealed, "The presence of 54 trillion Iraqi dinars, 4 of which are in banks and 50 among individuals in homes, how can the government withdraw this large cash block? What are the encouraging means to buy government bonds and lending? This is what the state's financial policy is currently looking at."
 
Al-Fahd added, "The government is currently working to close simple computers {trust accounts}; but our problem in Iraq is most of our operating expenses, not investment, and our dependence on oil mainly."

He added, "There are job slack and double wages. Radical solutions must be put in place. Most countries in the world, especially oil, have suffered from the crisis, but they have sovereign funds through which the deficit can be bridged," usually resorting to withdrawing cash reserves from the central bank that "will weaken the Iraqi currency." 

He concluded Fahd his speech by saying , "There are things that many are on the table , including savings mandatory for employees , " pointing out that " the withdrawal of funds frozen and smuggled out of the country file legal needs to raise claims and evidence and the timing of the long and the government is currently looking for quick solutions to get out of this crisis , " .


anthy 
Wafa Al-Fatlawi






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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty Al-Hakim discusses with the Minister of Finance the diversification of income sources and reclassification of exchange

Post by claud39 on Fri May 29, 2020 8:03 pm

[size=36]Al-Hakim discusses with the Minister of Finance the diversification of income sources and reclassification of exchange[/size]





05/27/2020





Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 112752020_ae7a3706-5815-4407-bbca-260dc289034a








Baghdad - Mawazine News




The President of the National Wisdom Stream, Ammar Al-Hakim, discussed with Minister of Finance Ali Abdul Amir Allawi the diversification of income sources and reclassification of exchange.


Al-Hakim said in a statement received / Mawazine News /, a copy of it:




 "We discussed during our reception the Minister of Finance the financial and economic reality and the treatments required to face the financial crisis suffered by Iraq."


Al-Hakim stressed that "Iraq is a rich country that possesses a lot of capabilities that need to be activated and good management, as it needs real remedies to end the phenomenon of a single source economy, and that this crisis in one of its aspects is an opportunity to get rid of the rentier state and diversify the sources of income by paying attention to agriculture, industry, tourism and the rest The sources "stressing" that the financial crisis remedies should be far from pressure on those with limited incomes, and reclassification of exchange in proportion to the current stage.


He called for "approving the budget law in accordance with the verified resources so that the current year will not be without a budget, which makes it difficult to obtain the final accounts of the state and work on organizing the program budget," noting "the importance of upgrading the investment environment and reviewing the laws so that Iraq is an attractive environment for investment in all its dimensions."




 Ended 29 / p







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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty In the document .. The central bank contributed to the escape of Iraqi money and the dissipation of its wealth

Post by claud39 on Sat May 30, 2020 1:32 pm

In the document .. The central bank contributed to the escape of Iraqi money and the dissipation of its wealth




2020 - 05 - 29





Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 5556aa3593







An economist called for a review of the exchange documents of the Central Bank of Iraq, which are approved for importing various goods, and presented them to the evidence, the forensic doctor, and experts for scrutiny, knowledge of their authenticity, and the detection of fraud and forgery in them.


The expert, who preferred not to be named at the present time, pointed out in an interview with "Digital Media NRT" today (May 29, 2020) that Iraq has witnessed significant import operations such as the private sector and with huge sums, showing that there is no real existence of the goods that It was disbursed for its sake, in addition to the fact that many of them are carried out with credits granted by forged documents, indicating that this matter is done  for the purpose of smuggling the currency.

Experts and specialists called for reviewing the records and documents of the Central Bank of Iraq and their conformity with the reality of what was imported through border crossings and government methods, and a serious investigation into the issue of currency smuggling.


A document obtained by Digital Media NRT shows that the Central Bank of Iraq spent several hundreds of billions of dollars to the private sector, between (2007-2018) to go to benefits that are not of real value, by importing goods that Iraq can dispense with many of them Or reduce it to the maximum extent possible.



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And the consultant in industrial development and investments Amer Al-Jawahiri confirms in a statement to "Digital Media NRT" that among the 9,556 billion dollars that were mentioned in the document, the share of machines and equipment was 5,214 billion dollars, while the import amount of drinks and cigarettes was 02.7 billion dollars. , Despite the high customs interest on it, noting that many exchange lists may be listed in the lowest field in the customs calculation percentage.


Al-Jawahiri called on the authorities that manage the economic file to pay more attention to the numbers that are shown in the document to benefit from them, and focus on the fact that the lists are real and reflect the country’s need and not only cover the supplies, calling on businessmen to open their credits in the country and that the future focus on supporting small projects by central bank"

The document shows an ascending hierarchy in import numbers, contrary to what the market logic imposes on sufficiency, especially in durable goods, where the numbers have reached three or four times even in the years of austerity, as they are mentioned in the first two paragraphs related to "food and animals" and the second to "oils and fats" Animal and vegetable ", where the numbers of the importer in the second paragraph exceed what is imported in the previous ones.


The document also shows the existence of floating and unspecified exchange doors that were included under names such as “manufactured goods according to material” and “various manufactures” and “goods and transactions not classified according to type.


Followers indicated that the central bank is misleading and deceiving the state as the bank claims that it is financing private sector purchases, and these people wonder if all these purchases made by the private sector are necessary for the state.


An economist asks, "Is there a sane person in the world who believes that the value of private sector purchases for Iraq is between 4, 4 to 5, five billion dollars a month?


And why is it called a private sector if the National Central Bank finances its purchases in hard currency?


He adds, "The Central Bank of Iraq is in fact ordering the financing of private sector exports to other countries to Iraq, because the real Iraqi private sector, the profitable, efficient, and competing product, has completely ended as a result of the bank's wrong policy that led to support and encouragement of import and dumping the Iraqi market and making Iraq an economically low country product and commodity. The other. "


This indicates legal experts who "Digital Media NRT" their opinions that the law and if it is proven the default of the bank or deliberate or neglected, it holds officials responsible for wasting public money and mismanagement.
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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty Parliamentary Finance: The government does not have the right to borrow abroad without the approval of Parliament

Post by claud39 on Mon Jun 01, 2020 9:49 am

 Parliamentary Finance: The government does not have the right to borrow abroad without the approval of Parliament




05/31/2020



Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 21142





Economy News _ Baghdad

Member of the Parliamentary Finance Committee, Hanin Qaddo, confirmed on Sunday that the government does not have the legal framework to borrow without going to parliament.

Qaddo said in a televised statement, followed by "Al-Iqtisad News", "Parliament rejects external borrowing from abroad and prefers internal borrowing to bridge the deficit of the crisis in the country."

He added that "in the event of an external borrowing, it must pass through the House of Representatives, and that external borrowing should be with the knowledge of the Parliamentary Finance Committee and Parliament."



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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty Deputy: Reducing and deducting employee salaries is not a solution, and the government must find alternatives

Post by claud39 on Mon Jun 01, 2020 10:08 am

Deputy: Reducing and deducting employee salaries is not a solution, and the government must find alternatives


01/06/2020



Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 21156



Economy News _ Baghdad



MP Mansour Al-Baiji confirmed on Monday that reducing and deducting employee salaries is not a solution and the government must find alternatives.

Al-Baiji said in a statement, "Economy News" received a copy of it, that "prejudice to the employees’ salaries is totally and totally unacceptable and we cannot accept it at all and we will not accept a reduction or deduction of any amount from it because it is not the solution and the government must find alternatives. "

He added, "The alternatives are many, including revenues from border ports, customs and mobile phone companies, and other revenues that the government must deal with firmly, away from the salaries of employees."

Al-Baiji expressed his surprise at sending the government $ 400 billion to the Kurdistan region and Iraq, living in a suffocating crisis, despite the fact that the region did not export a single barrel of oil to the center and did not deliver the border ports.

And he demanded the federal government "to clarify what is happening because it is not possible to accept this matter and we will not allow deductions of salaries and hand over the wealth of our provinces to the Kurdistan Regional Government and it refuses to deliver its oil and border ports to the federal government."





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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty The financial crisis ... poor assessment of risks

Post by claud39 on Mon Jun 01, 2020 11:56 am

[size=36][rtl]The financial crisis ... poor assessment of risks[/rtl][/size]


Monday 01 June 2020





Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Alsabaah-37345






Ibrahim Al-Abadi
 

This is not the first time that Iraq has experienced a serious financial crisis; In 2014, the financial crisis was accompanied by the fall of the central and northwestern governorates, and ISIS approaching Baghdad, and the government of Dr. Haider al-Abadi, the complex crisis, the public financial crisis, and the crisis of the succession of ISIS (the caliphate state) on the soil of Iraq, with measures that had no alternative, after which Iraq emerged victorious over the military-security and financial-economic crises that almost broke the back of the fragile state and referred it to Chaos of division, collapse and social rivalry.



What helped Iraq to overcome that ordeal, is to provide the priority of liberation and the management of the people's strength, by employing all internal and external capabilities, and to postpone what was otherwise to a less difficult circumstance, and that was not an absolute success, but it was a successful management of the crisis only. A big title is the crisis of the state in Iraq. The Iraqi state suffers an existential crisis in all its constitutional, legal, political, economic and cultural structures. It reproduces its crises and problems without agreeing to a final solution.



In the new financial crisis, the Al-Kazemi government finds itself almost unilaterally, and it must win the bet of success despite the number of internal conflicts and the unfavorable external environment. 



Great opportunities and lessons were lost from Iraq, but the most lost were the political class’s inability to assess risks and the predominance of thinking Populist and ideological determinants, harnessing media discourse and daily political bidding, which greatly limits the government's ability to deal with the crisis with open options and not limited and minimal options.



How, then, will Iraq overcome a crisis that will last for three years, for example, until the world economy returns to growth and activity again?



 Estimates of economists and houses of financial expertise indicate that the global economy will not return to work with full capacity before 2023, and this means that Iraq will continue to suffer a financial liquidity crisis to manage its operational budget, in addition to that its reserves of $ 67 billion will be subjected to severe pressure, leading it to drop to Less than thirty and less than that, to cover imports and maintain an acceptable exchange rate for the dinar in exchange for the dollar, Iraq needs permission to a different thinking style, needs a stable political environment and a solidarity speech uniting the priorities of the government and people out of the ordeal, Iraq needs a high internal security that disappears in it Reviews of strength, weapons and threats, and a suitable and attractive environment for the domestic and foreign investor are available to employ hundreds of thousands of unemployed people looking for a livelihood that the government cannot provide in the near future.



 Iraq needs 
The crisis is very serious, and maintaining social peace and reducing the level of protest require politically disciplined behavior that does not trade with the interests of the poor classes, and does not provide it with an ideological increase and empties its pockets of money. 



The economy and income will be the main engine for political behavior in the coming months and years, during which Iraq will not experience hunger in The street, however, will witness violent anger against camouflaged corruption, patronage, favoritism and acquisitions that are protected by force of arms, the first steps in a long way to face the challenge is to calm the internal environment, curb violent ideological trends, rational thinking and disciplined political behavior in the concept of risk assessment, the presentation of interest and the priority of public service.









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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty Call for action to release the country's funds withheld in a number of countries to resolve some financial crisis

Post by claud39 on Mon Jun 01, 2020 8:23 pm

Call for action to release the country's funds withheld in a number of countries to resolve some financial crisis


JUNE 1ST, 2020


Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 %D8%A7%D9%84%D8%B3%D8%A8%D8%AA-%D8%A7%D9%84%D9%85%D9%82%D8%A8%D9%84..-%D9%85%D8%AC%D9%84%D8%B3-%D8%A7%D9%84%D9%86%D9%88%D8%A7%D8%A8-%D8%B3%D9%8A%D8%AA%D8%AE%D8%B0-%D9%82%D8%B1%D8%A7%D8%B1%D8%A7%D8%AA-%D8%A8%D8%AD%D8%AC%D9%85-%D8%A7%D9%84%D8%A7%D8%B9%D8%AA%D8%AF%D8%A7%D8%A1%D8%A7%D8%AA-%D8%A7%D9%84%D8%A5%D8%B3%D8%B1%D8%A7%D8%A6%D9%8A%D9%84%D9%8A%D8%A9-%D8%B9%D9%84%D9%89-%D8%A7%D9%84%D8%A8%D9%84%D8%A7%D8%AF-380x214


Deduction from salaries or savings requires statutory legislation and the two are merely leaks
Baghdad - the new morning:
Representative Saturday Karim Alioui called on the federal government to act on the United States and a number of countries to release the funds withheld from them from the funds of the defunct or frozen system from the oil-for-food program, and while he indicated that those billions can solve a large part of the financial crisis instead of focusing on salaries Staff and the endeavor to deduct it, a deputy from the Finance Committee stated that rumors of a deduction in salaries or savings from them are merely leaks, and that the matter is not what some people portray because they need legal legislation.
Aliwi said in a statement seen by the new morning, that "there is news that reaches us about the government's intention to adopt compulsory savings or deduction from employee salaries under the pretext of lack of financial liquidity and the economic crisis", noting that "there are many outlets and doors through which the government can provide Part of that money instead of focusing on a door that harms the simple citizen. ”
Aliwi added, "There are billions of dollars withheld funds from the defunct regime in the United States and some other countries, not to mention billions of others frozen from the oil-for-food program that can solve a large part of the financial and economic crisis in Iraq until the end of this year."
He continued, "Today, it is imperative to move by the government to release these funds and benefit from them to solve the economic crisis and the lack of financial liquidity instead of focusing on the salaries of employees." Available to provide decent living for all Iraqis instead of seeking to constrict them with different pretexts.
In the context, the parliamentary financial committee ruled out the possibility of deducting or saving employee salaries without making legal amendments, while assuring that the 2020 budget will arrive in Parliament soon.
Member of the Committee Haneen Qaddo said in a press statement that "the Finance Committee in Parliament has not received any serious proposals by the government related to deduction or reduction of salaries and allowances for employees and retirees."
He added that "all rumors on this issue are unconfirmed leaks, while Parliament expects to receive a budget this year soon in order to develop economic and financial solutions and treatments."
Qaddo emphasized that "any reduction or change in the salaries of employees must be made through amendments to legislation and laws that stipulated salaries, otherwise the government cannot reduce salaries."


http://newsabah.com/newspaper/239672
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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty Al-Tamimi: The provincial government has doubled the number of its employees

Post by claud39 on Tue Jun 02, 2020 6:44 pm

Al-Tamimi: The provincial government has doubled the number of its employees


02/06/2020





Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 21178







Economy News _ Baghdad

Member of Parliamentary Finance Magda Al-Tamimi revealed on Tuesday that the region has doubled the numbers of its employees, indicating that the government handed over Kurdistan trilon and 765 billion dinars without receiving a single barrel during 2020.

Al-Tamimi said in a televised statement, followed by "Al-Iqtisad News", that "Al-Kazemi’s government is obliged to pay 400 billion dinars per month to the Kurdistan region, because the current budget has not been approved and the government is working according to the State Administration Law 12/1."

Al-Tamimi added, "The current government is supposed to settle the salaries of the region's entire employees, who number 682,000 employees, while the region claims that the number of employees has reached one million and 200,000 employees."

He continued that "the next budget 2020 will be to walk things and it is too early to talk about the 2021 budget because of regional political and economic changes." 



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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty Dr.. Ahmed Ibrihi Ali *: Government budget deficit and its financing in Iraq

Post by claud39 on Wed Jun 03, 2020 10:47 am

Dr.. Ahmed Ibrihi Ali *: Government budget deficit and its financing in Iraq


02/06/2020





Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Ahmad-Ibraihi-image-1








The difference between government spending and revenue is called the budget deficit, and it is a familiar topic for readers that governments have known for a long time, and it has become the most prominent expression of the corona shock. Data from mid-April and April indicate that all developed countries in 2020, with the exception of Cyprus, Luxembourg, Singapore and Hong Kong, manage their spending with an unparalleled deficit after the Second World War. All countries that are classified as rising or developing, with the exception of Qatar, face the same problem; Likewise, low-income countries except the Republic of the Congo. The deficit is usually measured by a percentage of GDP to demonstrate its weight in the national economy and its potential impacts.




In the ordinary economy, revenue from public budgets comes from: direct taxes on wealth, profits, and wages; Fees for licenses, transfer of ownership and sovereign services; Indirect taxes that are levied on various forms of disposition of income, including imports and sales, such as value-added taxes ... and others; Also, the budget share of the profits of the state's financial and non-financial companies. 




Therefore, revenues decrease with the decline in economic activity, and on the other hand, the crisis imposed on countries additional expenditures for the health sector, unemployment compensation and the assignment of losing companies, etc., thus widening the deficit and highlighting the difficulties of financing it and the negative effects of financing with exceptional measures

However, the deficit of the general budget of Iraq differs from that in the typical economy, the usual, and this is why we refer to financing the deficit in general and moving to Iraq and compare its economic content in the end with the typical model.




Deficit financing :




The deficit is usually financed by issuing government debt papers of them for the short term, one year or less, called Bills Remittances; Others, for the medium and long term, are usually called Bonds, and there is a category of them between two to ten years, which the US government calls Notes Notes. Remittances are often attributed to the government’s treasury and bonds, which are no more than designations. Remittances are discount cards, so the buyer pays less than the nominal value, for example 970 to receive 1000 upon payment. 




While the bonds are interest, i.e. the buyer pays the full face value of the bond and receives interest regularly, for example every six months, until the term. And interest on bonds from them at a fixed price, and in others, the interest rate is divided into fixed and variable according to the rate of inflation. 




All interest rates and discount rates are on an annual basis. When a three-month treasury transfer is said to be at a rate of 4%, it is intended annually, i.e. over the three months, 1% of the nominal value of the transfer, and all interest and discount rates, on an annual basis

In the hard currency countries, which are the international reserve currencies, such as the United States, the eurozone countries, Britain, Switzerland, Japan ... and a few other countries, government debt papers are issued in the currencies of those countries and are acquired by citizens, national institutions, foreigners, and foreign institutions.




 Therefore, the distinction between internal and external borrowing disappears. To clarify, all the central banks of the emerging, developing, and even developed countries invest most of their international reserves with government bonds and treasury transfers: issued by the American government, which is the largest component, and then debt papers for high-creditworthy eurozone governments, and from Britain, Japan, Switzerland ... and so on. 

This is because the currencies of those countries are of global use in foreign trade and cross-border financial investment, and when international financial markets are said, they are intended mainly for financial assets markets denominated in those currencies.




The rest of the world, especially emerging and middle-income and poor people, issue debt securities in their national currencies for domestic borrowing. It is rare for foreigners to acquire these securities for financial investment. 




And when resorting to external borrowing to issue debt papers in the above-mentioned hard currencies, however, they face difficulties in marketing them even at high interest rates because the evaluation of the sovereign creditworthiness of most of these countries is low and in a manner exaggerated by the famous credit rating houses approved in the international financial markets. Therefore, it is forced to borrow directly from the governments of developed countries and banks on difficult conditions.




The necessary question is why the governments of developing countries borrow from abroad to finance their public budget deficits. Unfortunately, there is a wrong and misleading answer that was spread among the people and that is the lack of sufficient internal resources to finance the financial deficit. While the truth is that borrowing from abroad, even if the financial budget has a form, it is to finance the external balance of payments deficit, which is called the current account. 




The main part of it is the trade balance because the imports of these countries from goods and services are greater than their exports and there is no automatic compensation financing that accommodates the trade deficit such as foreign investment or large income transfers, and at the same time they do not have sufficient foreign currency reserves to bridge the gap. 




In other words, payments in foreign currency are greater than receipts, and therefore it is necessary to borrow in foreign currency to finance this deficit and not the public budget deficit. It became clear that the developing country does not borrow from abroad when the balance of external payments is surplus or balanced, regardless of the deficit of the general budget; Also, even if governments expect a large deficit in the external balance, they do not borrow from abroad if they have sufficient foreign currency reserves to finance it.




Iraq budget deficit :




The financial deficit in Iraq is always associated with a deficit in the balance of payments, and unfortunately, senior officials and experts are satisfied with describing the problem in insufficient oil export revenues for government expenditures, but it has become familiar to compare the value of oil sales with salaries, with an odd omission of the external balance of deficit. While everyone knows that oil revenues are almost the only source for financing Iraq’s governmental and private imports of goods, services and other external payments. 




The deficit of the public budget is not new to Iraq, but appeared from late 1983 to 2003, passing through the years of the entire blockade. And in 2009 and since 2014. The budget deficit in all those years was associated with the deficit of the external balance. It is evident that the deficit in Iraq is double or twin, as it is said, because oil exports are revenues for the government budget and are, at the same time, almost all of Iraq’s foreign currency receipts, except for borrowing from abroad and little foreign investment. We wonder why the public budget deficit was not important to the general public in the 1980s, and the answer is simple because the external balance deficit found easy financing in foreign loans at the time.




 Also, in 2009 and in recent years because the central bank’s international reserves sponsored the gap between foreign currency payments and receipts. Whereas in the time of the embargo, when Iraq did not prepare for easy financing for the external balance deficit, after the oil resource was cut off or severely restricted, the Iraqis lived a life of hardship and extreme hardship. 




Iraq witnessed unbridled inflation that was unimaginable in a country like this, linked to the deterioration of the external value of the national currency and expressed by the continuous and accelerating rise in the price of the dollar that led the movement of the general level of prices for those years Also, in 2009 and in recent years because the central bank’s international reserves sponsored the gap between foreign currency payments and receipts. Whereas in the time of the embargo, when Iraq did not prepare for easy financing for the external balance deficit, after the oil resource was cut off or severely restricted, the Iraqis lived a life of hardship and extreme hardship.




 Iraq witnessed unbridled inflation that was unimaginable in a country like this, linked to the deterioration of the external value of the national currency and expressed by the continuous and accelerating rise in the price of the dollar that led the movement of the general level of prices for those years Also, in 2009 and in recent years because the central bank’s international reserves sponsored the gap between foreign currency payments and receipts. Whereas in the time of the embargo, when Iraq did not prepare for easy financing for the external balance deficit, after the oil resource was cut off or severely restricted, the Iraqis lived a life of hardship and extreme hardship. 




Iraq witnessed unbridled inflation that was unimaginable in a country like this, linked to the deterioration of the external value of the national currency and expressed by the continuous and accelerating rise in the price of the dollar that led the movement of the general level of prices for those years

Oil revenue decreased significantly in 2020 on May 12, Brent oil price was $ 29.63, and expectations indicate that it was excluded by more than $ 37 until the end of the year, thus reducing the value of oil exports below the minimum amount necessary for public spending, so that the deficit would reach at least 45 trillion dinars, and without External payments by a large margin deplete, perhaps, of half of the central bank's international reserves or more.




The public budget deficit in Iraq as a result of the low price of oil on the world market and not to reduce taxes or increase spending. The opposite is true with budget surplus when the price of oil rises to exceptional levels. Revenue of the general budget in Iraq is a variable completely independent of the national economy: the total productive capacity of goods and services, the operation of the workforce, costs and prices, and the surplus and deficit of the oil price movement abroad and not as a result of reducing or raising government spending.




 Balanced budget in Iraq never means that public finance is stable, but it can include high levels of government spending that raise aggregate demand with a multiplier effect and cause severe inflationary pressures as in the days of the explosive development of the seventies of the twentieth century and for the years 2003 - 2008; And if Iraq adopted in 2020 the balance of the public budget, this means the low level of total demand without the productive capacity of the national economy, the widening of unemployment, and even social ruin and political tension, and the deficit of the public budget in Iraq is usually associated with a low level of government spending and not only with the Corona crisis

The balance of the general budget in Iraq, its deficit and its surplus. Its economic implications differ radically from the typical economy because Iraq represents the properties of the oil rents with the highest attained in the world, most notably the independence of the general budget, between the deficit and the surplus from the national economy. 




Whereas in the typical non-oil economy, the balance of the general budget means, to a large extent, its neutrality towards the level of aggregate demand, employment and output; While the public budget deficit includes, in one way or another, a net addition to the total demand of government spending stimulating the national economy to approach full employment and productive capacity. 




If aggregate demand exceeds the limits of economic potential, represented by the possible supply of goods and services, inflationary waves are released and only then is it said that financing the budget deficit was the cause of inflation.




The central bank's role in monetary debt :




Central banks buy government debt securities from the secondary market, which is the dominant general rule, and few of them allow them to hold them directly from the initial issuance. Government debt appears on the asset side of the central bank’s balance sheet. 




The moment he buys the debt securities, the bank account of the seller who is open to him strengthens the value of the securities he acquired new. As for when he buys these papers directly from the initial issue, which is a rare case, he strengthens the government's account, the treasury is running, with the same amount. Bank and government accounts are on the liabilities side of the central bank’s balance sheet. That process, lending the central bank to the government, is called Debt Monetization, meaning converting it into cash. Money, by definition, is the currency in circulation plus deposits, and hence are liabilities on the banking system:




 the currency in circulation is liabilities for its holder of the central bank, and deposits are liabilities of their owners on banks. When it is said, liabilities on banks are comprehensive for institutions similar to banks and liabilities similar to deposits. The narrowest definition of money is: currency in circulation, outside the banking system, and current deposits with banks. The amount of currency in circulation is the amount of currency issued by the central bank, which is apparent on the liabilities side of its balance sheet, minus what the banks hold in order to hedge their clients ’requests. 




The currency comes out and enters, over the hours of the working day, to and from the central bank coffers, the interior is subtracted from the issued currency and the outside is added to it and the outcome increases or the issued currency decreases according to the withdrawals and deposits of banks and the government, deposits reduce the issued currency and the withdrawals increase in their amount The amount of currency in circulation is the amount of currency issued by the central bank, which is apparent on the liabilities side of its balance sheet, minus what the banks hold in order to hedge their clients ’requests. 




The currency comes out and enters, over the hours of the working day, to and from the central bank coffers, the interior is subtracted from the issued currency and the outside is added to it and the outcome increases or the issued currency decreases according to the withdrawals and deposits of banks and the government, deposits reduce the issued currency and the withdrawals increase in their amount The amount of currency in circulation is the amount of currency issued by the central bank, which is apparent on the liabilities side of its balance sheet, minus what the banks hold in order to hedge their clients ’requests. 




The currency comes out and enters, over the hours of the working day, to and from the central bank coffers, the interior is subtracted from the issued currency and the outside is added to it and the outcome increases or the issued currency decreases according to the withdrawals and deposits of banks and the government, deposits reduce the issued currency and the withdrawals increase in their amount

That is money, and the monetary base is the currency in circulation plus bank reserves. Bank reserves consist of its obligatory and free deposits with the central bank in addition to the currency it holds. In other words, the monetary basis is the deposits of banks with the central bank plus the currency issued from it. The monetary basis can be viewed by the assets in the balance sheet of the Central Bank, which is the net international assets plus net domestic credit.

 The net domestic credit clause includes the government’s net central bank loans. When the central bank buys government debt, the monetary basis from the side of the assets and from the liabilities side increases, by the same amount, by strengthening the current account of the bank that sold the papers, i.e. increasing its free deposits with the central bank. It has now become clear that the meaning of monetary debt is that increasing the central bank’s debt to the government requires an increase in the monetary basis. The monetary basis may be described as ultra-strong money or central bank money.




Possible consequences of monetary debt :




Monetary debt increases the monetary basis, with the steady effect of other factors. But the elements of the central bank’s balance sheet are constantly changing, and just as the monetary basis increases as a result of government lending, it may decrease by other operations. In Iraq, when the value of oil exports decreases, the foreign currency transferred from the Ministry of Finance to the Central Bank shrinks, while the central bank continues to sell foreign currency, thus depleting its reserves to bridge the difference between what is sold to the private sector and what is transferred from the Ministry of Finance. 




The budget deficit is always associated with the deficit of the external balance in Iraq, and therefore the process of monetary debt coincides with the depletion of international reserves to bridge the external deficit. Since the monetary basis is the net foreign assets plus the net domestic credit, we note its decline as a result of the contraction of foreign assets and their increase due to lending to the government. And when adding money-multiplication operations in banks through credit, or vice versa of its decline, or reluctance to deposit and preferring the currency, it becomes very clear that the debt is being cashed in conjunction with other operations, and the outcome may not be an increase in money. Also, quantitative data and research do not support a close link between the amount of money and the general level of prices or change in money and inflation.




(*) Researcher and Iraqi economic writer, former deputy governor of the Central Bank of Iraq

Copyright reserved for the Iraqi Economist Network. Republishing is permitted provided that the source is indicated. June 2, 2020




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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty A parliamentary bloc offers 14 proposals to secure employee salaries and avoid financial borrowing

Post by claud39 on Wed Jun 03, 2020 10:18 pm

[size=30]A parliamentary bloc offers 14 proposals to secure employee salaries and avoid financial borrowing[/size]



Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 1591155495_157604581671882300








Today, Wednesday, the National Approach submitted 14 proposals to secure the salaries of employees, retirees and those covered by the social welfare network, and to avoid the damages of borrowing on the country's economy.

"In order to secure the salaries of employees, retirees and those covered by the social welfare network, and to avoid the damages of borrowing on the country's economy, we recommend a set of measures and steps that combine the efforts of the government and parliament to accomplish," we suggest:

1. Adopting uniform standards embodying social justice in determining the salary scale and ending unjustified differences.

2 .. Abolishing the unfair privileges of senior officials and others and transferring them to the disadvantaged groups.

3. The fair management of wealth and its equitable distribution based on the criteria of the constitution and the population ratio of the governorates and avoiding political compliments and their unjust effects.

4. Collect revenue from outlets and customs through tight mechanisms and controls to ensure their complete fulfillment and fight corruption, which accounts for the majority of its revenues of billions of dollars, knowing that expert and expert reports estimate these revenues by at least 18 trillion dinars and only one trillion dinars are collected annually Or a little more.

5. Review the licensing rounds that constitute the costs and entitlements of their companies ’businesses, amounting to approximately 30% of the total oil revenues, if the sale price of oil is (30) dollars, for example, what has been allocated to foreign companies’ dues is approximately 15 trillion dinars for the year 2019, although more than We describe oil production as national efforts

6. Activating control and combating corruption that disappears in general and foggy addresses such as (other expenses, commodity requirements, service requirements and maintenance of assets), which requires more details and a clearer statement of the items included under these addresses and the specific numbers for each of them.

7. Adopting verification and control mechanisms on the currency auction to ensure the maintenance of hard currency from fraudulent fraud on the one hand and the collection of taxes efficiently and accurately to contribute to supporting the revenues of the general budget

8. Presenting and auditing the final accounts for the past seven years that have not been completed up to this time, in addition to following up the fundamental observations recorded by the supervisory authorities on the years that submitted their final accounts to Parliament and voted on them conditionally to reveal those fundamental violations that are supposed to take place within four months from the date Approved by Parliament, knowing that at the time we refused to vote and recognize those accounts full of waste that exceeds billions of dollars unless the fate of those funds is revealed

9. Supporting the agricultural and industrial sector according to guaranteed production projects that create additional job opportunities for the unemployed and provide additional revenues to support the state's general revenues.

10. Review the allocations of embassies, consulates and diplomatic missions and find out the actual need for the existence of many of them and their feasibility politically or economically, especially since many of them did not engage in productive activity for the country other than the financial depletion of the public budget and providing these huge funds for the Iraqi people and employing the unemployed and providing services.

11. The necessity to review the valid licensing contracts concluded by the Media and Communications Authority during the period since 2004 to ensure their consistency with the laws and restore the profit equation in order to achieve greater revenue for the Iraqi state. As the budget tables indicated that the revenues of the Communications Authority for the year 2018

(887) billion dinars, and its revenue estimates for the year 2019 (541) billion dinars, which is 40% lower than the previous year, and this is a strange indicator that needs interpretation and investigation.

Therefore, we demand a set of proposals in this regard:

a. The requirement for companies that win licensing contracts to pay no less than 70% of the net profits generated from their activity in operating the licenses granted to the Iraqi state

B. Reducing the time period for licenses granted to companies from (15) years to (5) years in order to ensure tougher commitment and higher competition for providing services and fulfilling the obligations and conditions of licenses for the benefit of the Iraqi state.

12. The budget included the allocations of the electricity wages purchased (1,13) trillion, as well as the allocations of importing fuel for electricity (3,8) trillion, and their total is approximately (4) trillion, a very large amount that successive governments could have avoided spending because they worked hard and made sure to save fuel from The national product, especially since many of the primary materials for electricity fuel go waste and waste, including associated gas and the establishment of power stations that consume this product, the absence of planning and lack of seriousness is wasting (4) trillion dinars in this resource only!

13. Reviewing all major contracts at the lowest levels concluded by the ministries in the past years through professional committees supported by specialized international companies, and could lead this step to uncover stolen and wasted money and it will constitute an important asset to aid the state in the face of the current critical economic conditions

14. Encouraging voluntary savings for citizens instead of external borrowing and providing exorbitant external loan interest and transferring it to Iraqi citizens in exchange for their voluntary saving, knowing that the allocations of foreign debt interest for the 2019 budget are approximately (5.5) trillion dinars.



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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty The central bank sends an open letter to the parliament presidency

Post by claud39 on Thu Jun 04, 2020 8:25 am

 The central bank sends an open letter to the parliament presidency




04/06/2020



Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 21242







Economy News _ Baghdad

On Thursday, the Board of Directors of the Central Bank of Iraq sent an open letter to the Presidency of Parliament, confirming that the bank fulfills its supervisory duties on the banking institutions operating under its authority in Iraq in accordance with its law and the instructions issued by it.

The bank said, according to the message he sent to the Presidency of Parliament, and "Economy News" obtained a copy of it, that the bank adopted a balanced monetary policy with the aim of controlling inflation rates and maintaining the exchange rate in the market, noting that the foreign currency selling window is one of the tools of this policy to control the monetary mass and meet The requirements of foreign trade and defense of the exchange rate, and the Central Bank has succeeded in controlling that within the Iraqi market despite the collapse of many currencies in neighboring countries.



Below is the text of the message:



Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 S598w5tadz0b



Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 8w3bzu8rro9w







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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty Valid for the governor of the central bank: the need to follow a balanced monetary policy

Post by claud39 on Thu Jun 04, 2020 9:56 am

[ltr]Valid for the governor of the central bank: the need to follow a balanced monetary policy[/ltr]




  • 4/06/2020







Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Photo-2020-06-04-15-47-09








[ltr](Baghdad: Al Furat News) Today, Thursday, President of the Republic Barham Salih received at the Baghdad Palace, Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq.[/ltr]




[ltr]President Saleh stressed, during the meeting, according to a presidential statement, the Al Furat News Agency received a copy of it, "The necessity of adopting a balanced monetary policy, and working to strengthen the financial situation through diversification of state resources and rationalization of government spending, especially in the current circumstances in which the country faces the Corona pandemic, And lower oil imports. "

The President of the Republic stressed "the importance of following rational financial policies that would achieve the supreme national interest and help Iraq to overcome the current crisis and achieve economic stability for citizens."


In turn, Al-Alaq reviewed the role of the Central Bank to reduce the economic repercussions of the Corona pandemic, expressing his thanks and appreciation for the interest shown by the President of the Republic to the bank in this sensitive circumstance, and his direct guidance in this regard.
Ammar Al-Masoudi





https://alforatnews.com/news/صالح-لمحافظ-البنك-المركزي-ضرورة-اتباع-سياسة-نقدية-متوازنة
[/ltr]
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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty In the documents, the Central Bank proposes to transfer the currency auction to the Ministry of Finance

Post by claud39 on Thu Jun 04, 2020 10:03 am

[ltr]In the documents, the Central Bank proposes to transfer the currency auction to the Ministry of Finance[/ltr]






  •  4/06/2020





Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 2018-1-16-23-27-32-794-6








[ltr]{Baghdad: Al Furat News} The Central Bank of Iraq renewed its proposal that the Finance Ministry take over the sale of the dollar to the market directly for exchange in Iraqi dinars to cover budget expenditures without the central bank’s mediation.[/ltr]




[ltr]The Central Bank attributed its proposal in its letter to the three presidencies, {Euphrates News Agency} obtained a copy of it until it “devotes itself to carrying out its tasks, which are numerous and important for financial stability and economic stimulus, and in order to get the bank out of the confusion that this issue causes.”

It is noteworthy that corruption suspicions are being raised continuously on the auction of selling currency to the Central Bank of Iraq, the last of which is support for terrorism.
Ammar Al-Masoudi



Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 9407be1bd4c5f4d01dd9b1a971290160



Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 40d91fc632f712a7132d439f390087b3









https://alforatnews.com/news/بالوثائق-البنك-المركزي-يقترح-تحويل-مزاد-العملة-لوزارة-المالية
[/ltr]
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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty A number of deputies submit proposals to reduce the financial crisis and support the economy

Post by claud39 on Thu Jun 04, 2020 10:22 am

[size=32]A number of deputies submit proposals to reduce the financial crisis and support the economy[/size]


 06/04/2020





Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 2020-06-04-at-09.08.10-130x90










A number of members of the House of Representatives announced on Wednesday 3/6/2020 a number of proposals to reduce the financial crisis to bridge the financial deficit and support the Iraqi economy.




"The House of Representatives began holding its sessions today with members going to activate the work of all council committees in their meetings to continue the functions of the Legislative and Supervisory Board in light of the challenges facing Iraq, which require the presence of the legislative authority in a continuous permanent meeting to support the government by taking Decisions that enable it to face health, economic and financial crises, as well as complete the necessary legislation and transitional phase requirements to reach a date for early elections in accordance with the aspirations of the people and the rationalization guidelines.




“As the parliament waits for the government to send its candidates from the remaining ministerial portfolios to seven ministries, ministries are important for the purpose of presenting CVs to the council so that the deputies can vote, and here we hope the Prime Minister will observe the required specifications in the leaders of these important ministries away from quotas and partisanship towards selecting competencies That are able to take responsibility in this circumstance. ”




The MP called on “political blocs to abandon the tendency of quotas and not to adhere to quotas and the so-called benefits and estimate the critical conditions the country is going through and to assist the prime minister in selecting members of his team in what he helps him to perform his duties and implement his ministerial platform.”




“In light of our continuous mobility in communicating with various social actors and personalities with experience in the economic sector and the private sector, not to mention universities and study centers, to reach solutions to overcome the severe financial crisis that coincided with the impact of the effects of the Corona’s global pandemic in oil prices, whose revenues are the main source In the federal budget.




We are following up with proposals before the Council of Ministers regarding the remedies required to reduce the deficit so that the state can pay all its obligations. ”




“We would like to show that we want the government’s direction in reducing the salaries of the three presidencies and special grades and senior officials and achieving social justice in distributing salaries to all eligible according to Iraqi laws as a first stage away from reducing the salaries of the remaining and retired employees except for what is mentioned due to the living conditions and the survival of most of the services provided by The private and public sector at the same prices as rents, services and other obligations, which burden the citizen today.




MP Mohammed al-Darraji stressed that “any governmental or parliamentary action towards reducing spending and austerity must be accompanied by a real trend by the government to combat administrative and financial corruption and stopping the waste of public money that has occurred previously or will happen through activating the role of the monitoring agencies and following up on issues raised by women.” And gentlemen, members of the House of Representatives and the media, particularly reinforced with priorities, documents and documents, and that there be periodic clarifications on what these measures are from the government and judicial authorities.




“We call on the judiciary to be present in this field in a manner that enhances the citizen’s confidence in the state and its authorities in combating corruption,” MP Muhammad Sahib said.




And the deputy indicated that, “In order to enhance the government's efforts in taking measures to reduce spending and maximize revenue, we offer solutions and proposals, including stopping work in currency selling outlets, while preparing instructions whereby all importers are required to submit lists that include imported goods for the purpose of customs accounting in the General Authority for Customs and Taxes before transferring money.” And notify the Central Bank of accounting according to official correspondence accompanied by customs bills and taxes.




The MP also stressed that “the change of the dinar exchange gradually in a way that does not affect the citizen and that it guarantees the provision of cash liquidity that the state needs.




He also pointed out that the other proposal is the necessity of reviewing the import curriculum and specifying possible goods and products to issue a decision to prevent their import to allow government companies in the Ministry of Industry, the private sector and the mixed sector to qualify their factories and produce these goods to create jobs and maintain hard currency instead of taking them out of the country. ”




He pointed out that a fourth proposal, which is to take measures that guarantee and speed control of the border outlets, not to allow any unofficial outlet, assign officials at a high level of integrity and courage able to control these borders, implement laws related to customs tariffs, protect the national product, prevent importation and apply the agricultural calendar. ”




The deputy revealed a fifth proposal to compel mobile phone companies to pay fines, benefits and taxes immediately with a legal technical review of the contracts of these companies to ensure the national interest with the activation of the fourth license and present it to the public through the competent ministry.




The proposals also included “activating the tax system and reviewing tax laws in a manner that allows for the development of this sector and what it represents of important revenue for the state.




7_ Re-activate the initiative of the Central Bank to allocate funds for loans to the industrial, agricultural and real estate bank to encourage the private sector to borrow and implement projects that create real development that the restrictions and controls for granting loans be eased
as well as allocate the necessary funds for lending to small and medium-sized youth in order to generate jobs and create small projects You can be a source of living for young people at the present time. ”





The deputy emphasized the encouragement of cooperative societies and markets in the mixed sector towards the trend of importing foodstuffs to control market prices and not affecting the living conditions and needs of the citizen.




The deputy explained that these and other proposals that would provide funds to bridge the deficit on the one hand, and we see that these amounts are directed towards supporting the social protection network, the ration card, medicines, and water sterilization, while supporting the educational and educational process and securing all its needs.




During the conference, the deputy said, “We, the signatories of this statement, announce that they are MP Muzahim al-Tamimi, MP Muhammad Shi'a al-Sudani, MP Adnan al-Zarfi and MP Qasim al-Araji that we are with any national effort from political blocs in parliament to support the state and its executive, legislative and judicial powers so that the country can bypass these The crisis and we are confident that this people, with its history of sacrifice, is able to overcome this crisis, especially as it is a promising country that possesses natural and human wealth, competencies and capabilities that facilitate overcoming this crisis.




Parliament,
Information
Department 4/6/2020








https://ar.parliament.iq/2020/06/04/%d8%b9%d8%af%d8%af-%d9%85%d9%86-%d9%86%d9%88%d8%a7%d8%a8-%d9%8a%d9%82%d8%af%d9%85%d9%88%d9%86-%d9%85%d9%82%d8%aa%d8%b1%d8%ad%d8%a7%d8%aa-%d9%84%d9%84%d8%ad%d8%af-%d9%85%d9%86-%d8%a7%d9%84%d8%a3%d8%b2/
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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty Re: Follow-up cell: The government may resort to borrowing and printing currency to provide salaries

Post by claud39 on Thu Jun 04, 2020 7:30 pm

@claud39 wrote: The central bank sends an open letter to the parliament presidency




04/06/2020



Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 21242







Economy News _ Baghdad
On Thursday, the Board of Directors of the Central Bank of Iraq sent an open letter to the Presidency of Parliament, confirming that the bank fulfills its supervisory duties on the banking institutions operating under its authority in Iraq in accordance with its law and the instructions issued by it.

The bank said, according to the message he sent to the Presidency of Parliament, and "Economy News" obtained a copy of it, that the bank adopted a balanced monetary policy with the aim of controlling inflation rates and maintaining the exchange rate in the market, noting that the foreign currency selling window is one of the tools of this policy to control the monetary mass and meet The requirements of foreign trade and defense of the exchange rate, and the Central Bank has succeeded in controlling that within the Iraqi market despite the collapse of many currencies in neighboring countries.

Below is the text of the message:

Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 S598w5tadz0b

Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 8w3bzu8rro9w







The esteemed Speaker of the House of Representatives An open letter from the customary central bank board of directors Article (61): (Secondly, Sansa, and VII) of the Iraqi constitution, refers to the oversight responsibility of the nuclear council and or a responsibility that enables its members to oversee the executive institutions in all their formations and levels, And to contribute to her performance at any time and in any case, according to the constitution and laws

In this context, the Central Bank of Iraq recommended full responsibility to Ramah, and his response to all calls made to him by Parliament for the purposes recorded. A copy of it guarantees you the meetings you seek from the relevant committees It was also clear that his bid was always under the late legal authority, and then see its loyal members as Yuk, on the other hand, fulfilling his supervisory duties on banking institutions operating under his year at the time according to his saying and the camps issued by The Central Bank to the dealings price of the state during its passage by more than Auto. It supported its efforts in the Arabs, a war that left it in the shadow of injustice a solution to oil prices, including its nasal and rainy nose, to the central collapse

A balanced minority policy, weakened control to withdraw inflation and maintain the price Exchange in the market and in agreement with the security currencyI am dying this policy, controlling the technical college, meeting the requirements of heavy trade, and defending the exchange rate. The Central Bank has been controlled in controlling: inside the Iraqi market, despite the collapse of many currencies in neighboring countries (the Turkish lira, Hayri al-Amiri, the Iranian Schumann, the Syrian pound, and the Lebanese pound, and the implementation of a codified policy with those who violate the terms and controls of Nafat, the source of the foreign currency, as it was done Punishment of many banks that violate the instructions, with amounts that exceed the Milaman dollars during the past four years, in addition to me referring many waste to the Iraqi forward, as well as freezing the assets of drops from entities and people and withdrawing many vacant companies in order to enhance the value of its foreign assets



Highly conservative investment share for long-term assets, gold-rooted baskets, international Sadat, a balance between wind and brewery management and allied with the foreign currency with which the Iraqi dinar is associated with (Fagged Currary) by investing in financial years of low sentiment, a Schollar and the use of investments, time, time, risky risks, and the central bank has achieved the barrier A positive task, Khadi, in the year 2018, Egypt drew attention to the needles of the Sunni market and to confirm the friendliness of the bank Focus on ethnic and  hair limit to combat the laundering of things except the tattoo of terrorism in Araou, for the international financial honey honey (MENA FTF) | Through the year 2018 on Harro Al-Urfi from the region of Ould but the criticism is over. Ezzat is in the region of Khanem Hai, and the treatment of the short-cut and picked out all the money and money from the manager’s country. The contribution of the killing and financing of the one who did God’s command. Blood 12 from the Nile, born bitter, Millia Arab and Tel Dara by Shahr Yaf partAuto گZNI Higher was not chosen in 2018 from the best central banks to the higher Arab region

His Excellency the late Speaker of the Chamber of Deputies Kzi as he refers to this, may he confirm the long-term (some) repentance of the article to the media, and their accusation is not inferior and is not greedy towards the monetary authority in the country. The most recent of which was one of the deputies accused of accusing the central bank of corruption and financing terrorism, in a formula that targets the public and against public opinion against state institutions, as well as it gives a negative impression in front of international institutions and forums, which is difficult to deal with and obtain their support, and weakens the opportunities for foreign investors. It is to display before you this hill, asking your Excellency to take what is necessary, according to what he denied, and urged the distinguished members of the Council, to abide by the law, to make all of them accusations against the state institutions, including the central bank, and to assist them in performing protection for their aunt before the honorable citizens at the time In which the central bank, gentlemen, respected members of the House of Representatives, hosts you, to see the currency work, work of all departments, and deal positively with any proposal that saves from the esteemed parliament



The Federal Finance and External Investigation Committee in addition to the internal team department and international apartment offices, which contracted with additional auditing bodies specializing in selling foreign currency and reserves to share programs that track the movement of the dollar to and forest transfers in coordination with the relevant international bodies. It was suggested in many meetings with the executive and legislative authorities that The Ministry of Finance, with its, takes over the equivalent of the Iraqi dinar to cover the budget expenditures without mediating the six central And, for the Central Bank to devote itself to performing its tasks, which are important and important to stabilizing  and stimulating the economy, and from Mount Haraj, the core of the disturbance circle that becomes gray is the subject of the requirements of the arts and the severity of On the commitment of the law, all of them accuse the state’s institutions, and those who help them to perform their duties and protect their hearing before the honorable heads and at a time when the central king welcomes the members of the esteemed House of Representatives throughout the work of the currency sale window and the work of all departments and deal positively with any proposals that come from the Council Now, the response is to refer to the following: 


The central bank is the institution that is uniquely multi-regulatory, to which its operations are subject from all internal bodies such as the Federal Financial Supervision Bureau and an external investigation committee in person to the Department of Internal Investigation and an international investigation and here we believe with additional spending agencies specializing in foreign currency sales and Citizenship Special tracking programs tracked the movement of the monetary dollar and foreign transfers in coordination with the executive and legislative authorities. 


The Ministry of Finance should exchange them for the Iraqi dinar to cover budget expenditures without mediation - this proposal is for the central bank to provide for its functions, which are economic and for the sake of the jamming department The thing is, as it continues with the work
method that has been set, and in accordance with the requirements of law and legalization.


#############
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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty A deputy addressed Al-Kazemi with a message: He saved the future of Iraq from the trap of foreign debt

Post by claud39 on Thu Jun 04, 2020 8:45 pm

A deputy addressed Al-Kazemi with a message: He saved the future of Iraq from the trap of foreign debt




Thursday 04, June 2020


Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 835868-935f902c-32b0-4765-8147-0b6ba0eeca44



Baghdad / Nina / Member of the Committee to Monitor the Implementation of the Governmental Program and Strategic Planning on the Sawaroun Parliamentary Bloc, Dr. "Inaam Al-Khuzai," sent an open letter to the Prime Minister entitled "Save the future of Iraq from the trap of foreign debt."

Al-Khuza’i said in her message she received the Iraqi National News Agency / NINA/ A copy of it: The draft (Domestic and External Borrowing Law) raises astonishment and great concern about government trends towards external borrowing, to finance public expenditures for several reasons; First: The reasons for the law of external borrowing are the decline in oil prices, and this decline is not surprising, and Iraq has been living with it for years due to fluctuations in oil prices, which have decreased and increased, adding: Therefore, there is no necessity to mortgage the country's economic and financial resources abroad due to the volatility of oil prices, especially since the prices are recovering Tangible after it touched the barrier of $ 40 a barrel recently due to the commitment of major oil producers to control production and start global economic activity in coexistence with the Corona pandemic and gradually move the economic sectors.

Al-Khuza’i explained: The second reason for abandoning external borrowing is the lack of a budget need for cash in “foreign currency,” but there is a need for “Iraqi dinars” to bridge the financing gap until prices recover and maximize other financial resources for the government, noting: The government directs to external borrowing. For the fate of Iraq to international wills and a serious threat to its political, economic and social security, instead, internal borrowing should be adopted by tracking the financial flows flowing from Iraqi banks (Al-Rafidain and Al-Rashid and the Iraqi Bank for Trade) and other private banks, and the central bank will support these banks as happened in 2016 And 2017.

Al-Khuzai noted that: the financial institutions operating in Iraq can be persuaded to secure good sums to supplement and finance the budget, until oil prices improve and all internal obligations and debts are paid without harming the sovereignty and political and economic future of Iraq, stressing: the need for the government to strive to maximize non-oil revenues , Eliminating pockets of corruption, wastage ports in the state’s resources, such as border ports and their huge revenues, real estate of the looted country, opening the file of “debts owed by communication companies”, Iraq’s money abroad, and other abundant financial resources, not immediately resorting to easy solutions (external borrowing). And risk the future of the country and the citizen.


 / End 3






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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty Al-Tamimi demands that the Finance Committee members meet with the Prime Minister and Minister of Finance

Post by claud39 on Thu Jun 04, 2020 8:51 pm

Al-Tamimi demands that the Finance Committee members meet with the Prime Minister and Minister of Finance





Thursday 04, June 2020




Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 835801-577ee6cc-9325-44f7-93c4-9d55628387e4


Baghdad / Nina / Member of the Finance Committee, MP Magda Al-Tamimi, formally requested that the committee members meet with the Prime Minister, Minister of Finance, and general managers in the budget and accounting departments.

Al-Tamimi said in a statement that Nina received a copy of it, "The meeting comes to discuss a number of important issues, including identifying the government's fiscal and monetary policies during the current and upcoming phases, as well as proposing several axes related to citizens' lives through the payment of salary dues and taking decisions regarding wages Contracts and lecturers and its plan to employ the unemployed. "

Al-Tamimi stressed "the necessity of holding the meeting as soon as possible to unify the visions between the legislative and executive authorities in preparation for reaching a comprehensive reform paper, and not only relying on austerity policy in expenditures, but more importantly is focusing on the reform paths and solving the problems of citizens related to their jobs and entitlements." / End 10




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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty Parliamentary solutions to the financial crisis Al-Kazemi’s office .. Trends towards changing the dollar policy and the exchange rate

Post by claud39 on Thu Jun 04, 2020 10:04 pm

[size=30]Parliamentary solutions to the financial crisis Al-Kazemi’s office .. Trends towards changing the dollar policy and the exchange rate[/size]


2020-06-04





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Yassin Iraq: Baghdad

A number of deputies submitted several proposals to the government of Prime Minister Mustafa Al-Kazemi to reinforce the government's plan to overcome the financial crisis.

The proposals that the deputies read in a statement during the preparation for tomorrow's session included about 6 points and proposals, which included stopping the auction of selling the currency and changing the exchange rate in a way that does not affect the citizen, reviewing the import approach to reduce and prevent import of available products, as well as controlling border crossings and applying the agricultural calendar.




https://yesiraq.com/wp-content/uploads/2020/06/WhatsApp-Video-2020-06-04-at-12.36.18-AM.mp4?_=1





https://yesiraq.com/%D8%AD%D9%84%D9%88%D9%84-%D9%86%D9%8A%D8%A7%D8%A8%D9%8A%D8%A9-%D8%B9%D9%84%D9%89-%D9%85%D9%83%D8%AA%D8%A8-%D8%A7%D9%84%D9%83%D8%A7%D8%B8%D9%85%D9%8A-%D9%84%D9%84%D8%A3%D8%B2%D9%85%D8%A9-%D8%A7%D9%84/
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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty Parliamentary Finance Al-Kazemi received 10 alternatives to overcome the economic crisis

Post by claud39 on Fri Jun 05, 2020 10:50 am

 Parliamentary Finance Al-Kazemi received 10 alternatives to overcome the economic crisis


05/06/2020



Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 16190







Economy News - Baghdad



The Parliamentary Finance Committee revealed, on Friday, a forthcoming meeting with Prime Minister Mustafa Al-Kazemi, the Ministry of Finance and the Central Bank to present 10 alternatives to overcome the current economic crisis and maintain the salaries of employees without deduction, and agree on what can be implemented from those alternatives.

Committee member Majid Al-Waeli said in a statement reported by the official Al-Sabah newspaper and seen by Al-Iqtisad News that “there are many alternatives that can reduce the severity of the current crisis significantly, including increasing the price of a barrel of oil that is sold by $ 5 to refineries Of the Ministry of Oil, while the rate of selling it according to the 2019 budget is $ 60.

He added that "those refineries buy about one million barrels per day; that is, there is a difference in the price of up to 55 dollars, meaning that there is a price difference of 55 million dollars," noting that "the treasury can supply about 50 percent of this amount, i.e. up to 20 25 million dollars. "

He added, "The other alternative is to reconsider the sums of real estate sold cheaply and leased with sums, especially those that are located in the heart of the capital and in distinct areas of it, as it can be re-evaluated again because some of them are inhabited without paying any sums of rent at all."

Al-Waeli indicated that "there is a forthcoming meeting of the Finance Committee with Prime Minister Mustafa Al-Kazemi and the Ministry of Finance next week to present those alternatives before it and implement what can be implemented from them." He stressed that "the committee is preparing an integrated study in the light of the reports submitted by each of the Central Bank on the financial crisis And the government as a vision by the Council of Advisors, which dealt extensively with the deduction of employee salaries as a solution to overcome the financial crisis.





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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty The Finance Committee determines the conditions for external borrowing ... a dispute in the legislature regarding it

Post by claud39 on Fri Jun 05, 2020 4:36 pm

[size=36]The Finance Committee determines the conditions for external borrowing ... a dispute in the legislature regarding it[/size]






05/06/2020








Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 8562020_513375Image1





Baghdad - Mawazine News

, the Parliamentary Finance Committee has set out, on Friday, the conditions for Iraq to borrow from international banks, while indicating that there are different opinions from the legislature on the subject of borrowing.

A member of the Parliamentary Finance Committee approved the Royal According to the official agency, said that external borrowing must be in accordance with the standards and database ", pointing out that" among these criteria to be interest rate of the small and the duration of long so that there will be time to re - recovery of the national economy. "

The The Sultan said, "External borrowing is supposed to be devoted to important issues, including salaries and government expenses for institutions," noting that "there are different opinions from the legislative authority on the subject of borrowing, whether internally or externally."

He added: "Today we need quick decisions, activating some decisions in the Ministry of Finance, and restoring the financial and functional structure policy of the central bank."


 Ended 29 / h







https://www.mawazin.net/Details.aspx?jimare=103615
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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty The Iraqi Minister of Finance excludes approval of the federal budget for 2020

Post by claud39 on Sun Jun 07, 2020 6:47 pm

The Iraqi Minister of Finance excludes approval of the federal budget for 2020


June 07, 2020 





Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 1024




Direct: The Iraqi Finance Minister ruled out approving the federal budget for 2020, indicating that the government is working on preparing for the budget for next year.




Ali Abdul-Amir Allawi said, today, Sunday, in a press conference attended by the Iraqi News Agency (conscious), that the approval of the Federal Budget Bill for 2020 is a slave, pointing out that the government is working to prepare for next year's budget.




Allawi added that the government needs 7 and a trillion dinars of operating expenses, following: "We will continue to borrow from local banks to finance salaries and ruling expenses."




He noted that the government is working on borrowing from the World Bank to address the financial crisis.



Nominations




https://www.mubasher.info/news/3650091/%D9%88%D8%B2%D9%8A%D8%B1-%D8%A7%D9%84%D9%85%D8%A7%D9%84%D9%8A%D8%A9-%D8%A7%D9%84%D8%B9%D8%B1%D8%A7%D9%82%D9%8A-%D9%8A%D8%B3%D8%AA%D8%A8%D8%B9%D8%AF-%D8%A5%D9%82%D8%B1%D8%A7%D8%B1-%D8%A7%D9%84%D9%85%D9%88%D8%A7%D8%B2%D9%86%D8%A9-%D8%A7%D9%84%D8%A7%D8%AA%D8%AD%D8%A7%D8%AF%D9%8A%D8%A9-%D9%84%D9%80-2020/
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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty What after the Central Bank of Iraq supports terrorism?

Post by claud39 on Sun Jun 07, 2020 8:20 pm

[size=32]What after the Central Bank of Iraq supports terrorism?[/size]


June 7, 2020





Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 %D8%AA%D9%86%D8%B2%D9%8A%D9%84-5-3








Written by: Zuhair Al-Fatlawi




MP Magda Al-Tamimi was divided, with the auction of hard currency, which is managed by the Central Bank of Iraq, into four directions, surprisingly from its existence from the original. Al-Tamimi said that "the currency auction goes in the first quarter for the pockets of some corrupt employees, while the second quarter is seized by parties, and the third is in the hands of merchants, and the fourth and last quarter goes to terrorism." As she pointed out that "the financing of terrorism was through a currency auction managed by the Central Bank of Iraq." 



The speech of MP Majida Al-Tamimi in Al-Sharqiya channel, which is seen by millions of people, was not surprising, and the evidence is a lot of security experts and strategists say that corruption supports terrorism) and the currency auction in the Central Bank of Iraq is not free of corruption. Attribution and financing of terrorism. What do we say to the Central Bank of Iraq’s management of this fact and accepted the scandal with corruption and looting of people's money through prepaid companies, smart card. And she indicated that "the financing of terrorism was through the auction of selling the currency." 



Where are the oversight bodies, especially the Iraqi judiciary, the public prosecutor, the Integrity Commission, the media, public opinion, and civil society organizations. What do we say to the countries of the world and the most important monetary institution in the country that supports terrorism systematically.


 There are several clues, including dozens of private banks that live on the auction of selling currency and do not provide any other services to the Iraqi citizen, not even the granting of small loans, support for projects for job seekers, mere smuggling and money laundering, and support for corrupt political parties that have plagued the Iraqi people.


Why does the Governor of the Central Bank of Iraq cling to this important and sensitive position in the Iraqi state? 


Why not be surprised how lost $ 500 billion in Iraq? 


, This is an important part of the truth, as the Iraqi Center for Legal Development ICLD revealed seventeen suspicions of corruption in the work of the Central Bank of Iraq over the past years, demanding the Iraqi judiciary to verify the banks affiliated with political parties or supported by them. 


The Center for Iraq for Legal Development says: The number of Iraqi banks exceeds the number of banks in Britain, the Emirates, Jordan and Lebanon combined. The center said in its previous report submitted to the Supreme Council for Anti-Corruption, that “previous investigations were not carried out in an integrated manner, which caused keeping this door before whales and the mafia of corruption open in an impact Negatively on the Iraqi economy. We do not know what these mockery and this corrupt corruption is in Iraq. 




The authority is plundering the citizen, the investor, the rich and the poor, no reconstruction, no development, or a fair distribution of wealth! The report indicated that “previous investigations have focused on the validity of the bills issued by banks and companies in terms of formality only, indicating” the necessity of ascertaining to the official authorities about the fact that goods and goods are imported with amounts equal to the amounts of remittances and in the event that this is proven, a complex crime of forgery, fraud, smuggling of funds and damage will be proven Iraqi economy. 



The report referred to “failure to verify the international banks to which the amounts of the alleged transfers were transferred, and to inquire about the fact that the relevant authorities have received them or transferred again in favor of other accounts, whether in the same bank or other banks, and here the crime of smuggling the currency will be proven in a certain and real way. 




The report pointed out that "the central bank administration has nearly doubled the number of banks in Iraq without a feasibility study to exceed the number of Iraqi banks in the number of banks in Britain, the Emirates, Jordan and Lebanon combined, which opened the door to corruption and new waste, which is buying and selling establishment licenses."




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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty The Ministry of Finance excludes approving the budget and seeks borrowing from the World Bank d. Nasser Al-Kinani / Economist

Post by claud39 on Mon Jun 08, 2020 9:59 am

[size=36]The Ministry of Finance excludes approving the budget and seeks borrowing from the World Bank d. Nasser Al-Kinani / Economist[/size]


[size=36]8 juin 2020
[/size]


[size=36]Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Mrwsnap-2020-06-08-16h12m23s424
[/size]






[size=36]
[/size]


[size=36]https://www.alrasheedmedia.com/2020/06/08/270151/
[/size]
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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty An upcoming meeting between Al-Kazemi and Parliament to resolve three important financial files

Post by claud39 on Mon Jun 08, 2020 6:17 pm

An upcoming meeting between Al-Kazemi and Parliament to resolve three important financial files


08/06/2020





Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 %D9%85%D8%B5%D8%B7%D9%81%D9%89-%D8%A7%D9%84%D9%83%D8%A7%D8%B8%D9%85%D9%8A-696x435








The information / Baghdad ..



Member of Parliamentary Finance Committee Magda Al-Tamimi revealed, on Monday, an upcoming meeting between the committee and Prime Minister Mustafa Al-Kazemi and the Minister of Finance to discuss some important financial files, stating that external loans, salaries and the budget will be the preliminary discussions.



Al-Tamimi said in a dialogue followed by / information / that "the committee called for a meeting with Prime Minister Mustafa Al-Kazemi and the Minister of Finance to discuss the government's plans in the file of foreign loans."



Al-Tamimi added that "the upcoming meeting will discuss the salaries of employees and how to pay them, as well as approving the budget for 2020 and the file facing the financial crisis."



She noted that "foreign loans to Iraq amounted to about 25 billion dollars, while the interior was about 38 billion dollars and loans imposed during the Gulf War were 40 billion dollars."



 Ended / 25D



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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty Government Advisor: We have withdrawn the funds of the China Payroll Agreement and we have no cash to pay off

Post by claud39 on Tue Jun 09, 2020 12:11 pm

 Government Advisor: We have withdrawn the funds of the China Payroll Agreement and we have no cash to pay off


 09/06/2020





Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 21336





Economy News _ Baghdad



The government’s financial advisor, Mazhar Muhammad Salih, revealed, on Tuesday, the withdrawal of about one billion dollars from the financial treasury of the China agreement to pay employees ’salaries for the current month, indicating that next month there is no cash and the government will rely on withdrawing liquidity from government banks.

"The government was forced to withdraw about one billion dollars that was earmarked for the China agreement to pay salaries this month, while internal debts were deferred by about one trillion dinars," Saleh said in a televised interview with the "Economy News",
adding that "the government has a deficit of about 4 trillion dinars within the minimum spending To pay salaries, electrical stations, hospitals and the ration card items.

Saleh explained, "Next month, deposits from Al-Rashid, Commercial Bank and Al-Rafidain banks will be withdrawn to pay salaries, in what will be the month that comes without any financial liquidity and urgently to urgent economic intervention." 





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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty Finance reveals the need for Iraq to borrow about $ 38 billion to cover the deficit

Post by claud39 on Thu Jun 11, 2020 1:07 pm

Finance reveals the need for Iraq to borrow about $ 38 billion to cover the deficit





2020/06/11





Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 %D8%AF%D9%88%D9%84%D8%A7%D8%B1








Shafaq News / The Parliamentary Finance Committee revealed, today, Thursday, the size of borrowing funds that the government needs to secure employee salaries and bridge the levy in the public budget.



"The finance and planning ministers informed us during the committee meeting, yesterday, Wednesday, that the government needs $ 5 billion in external borrowing and 40 trillion dinars in internal borrowing (the equivalent of about $ 38 billion)," the committee’s reporter, Deputy Ahmed Al-Saffar, told Shafaq News. It shall be from the Rafidain, Rashid, Real Estate and Central Bank banks.



He added that "approval of borrowing is subject to a condition," noting that this condition requires the government after 60 days to present a reform paper regarding the provisions of the draft general budget bill.



And Al-Saffar said, "Deduction of part of the salaries of employees and retirees is not a solution, but resorting to borrowing is the best solution to get out of the financial crisis and secure salaries and fill the gap that exists in the public budget."



And revealed the Parliamentary Finance Committee, earlier, the percentage of deficit "unprecedented" in the country's general budget for the current year 2020, estimated at "69" trillion Iraqi dinars.



It is noteworthy that sending the federal budget by the government to the Iraqi parliament has been delayed due to the continuous protests since last October, which led to the resignation of the previous government headed by Adel Abdul-Mahdi and its transformation into a caretaker government that is not empowered to send the draft budget budget to the parliament.




https://shafaaq.com/ar/%D8%A7%D9%82%D8%AA%D8%B5%D9%80%D8%A7%D8%AF/%D8%A7%D9%84%D9%85%D8%A7%D9%84%D9%8A%D8%A9-%D8%AA%D9%83%D8%B4%D9%81-%D8%AD%D8%A7%D8%AC%D8%A9-%D8%A7%D9%84%D8%B9%D8%B1%D8%A7%D9%82-%D9%84%D8%A7%D9%82%D8%AA%D8%B1%D8%A7%D8%B6-%D9%86%D8%AD%D9%88-38-%D9%85%D9%84%D9%8A%D8%A7%D8%B1-%D8%AF%D9%88%D9%84%D8%A7%D8%B1-%D9%84%D8%B3%D8%AF-%D8%A7%D9%84%D8%B9%D8%AC%D8%B2/
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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty Parliament Speaker directs the Finance Committee to discuss the borrowing bill

Post by claud39 on Thu Jun 11, 2020 6:54 pm

Parliament Speaker directs the Finance Committee to discuss the borrowing bill




10-06-2020





Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Image



Baghdad / news
Parliament Speaker Mohamed Al-Halbousi instructed the Finance Committee to hold a meeting to discuss the economic crisis and the draft borrowing law in the presence of the deputies and the relevant committees. According to what was reported by the media office of Al-Halbousi.



https://www.ikhnews.com/index.php?page=article&id=218497
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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty Parliament sets internal borrowing at 40 trillion dinars

Post by claud39 on Sat Jun 13, 2020 10:49 am

Parliament sets internal borrowing at 40 trillion dinars


13/06/2020





Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 21418





Economy News _ Baghdad



The House of Representatives intends to vote on a resolution setting internal borrowing of 40 trillion dinars and external at 5 billion dollars, while the Finance Committee denied deduction from employee salaries without returning to Parliament.

The committee’s rapporteur, Ahmed Al-Saffar, said in a statement reported by the official “Al-Sabah” newspaper and seen by “Al-Iqtisad News”, that “any deductions from the employees’ salaries must be by law that is voted upon in the parliament ”, noting that“ the financial committee met with the ministers of finance and planning and the governor of the bank The central and the representatives of the two ministries and advisors in order to find solutions to the financial crisis and to discuss the internal and external borrowing law of the government.

Al-Saffar revealed, "The close to voting on a draft resolution in the House of Representatives that includes limiting external borrowing to (5 billion dollars) and internal (40 trillion dinars) from local banks and the central bank."

He pointed out that "there is a condition that obliges the government, after voting on the draft resolution in the House of Representatives, which is to submit after 60 days a reform paper that works towards a fundamental change in the budget items and non-oil revenues."





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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty Al-Alaq: The devaluation of the dinar should not be the first line of defense to confront the financial crisis

Post by claud39 on Sat Jun 20, 2020 10:39 am

Al-Alaq: The devaluation of the dinar should not be the first line of defense to confront the financial crisis




19/06/2020




Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 4248




The Economy News - Baghdad:

The Governor of the Central Bank of Iraq, Ali Al-Alaq, stressed that the devaluation of the dinar against foreign currencies should not be the first line of defense to confront the financial crisis and bridge the budget deficit.

In a letter addressed to the former Assistant Secretary-General of the League of Arab States, Legal Adviser to the Prime Minister, Dr. Fadel Muhammad Jawad, and obtained by Al-Iqtisad News, Al-Alaq said that “by virtue of the central bank’s responsibility for monetary policy, the study and review of the exchange rate is an ongoing matter from Before formations of the bank and its board of directors based on in-depth studies that take into consideration all factors and variables, "noting that" the exchange rate is not a sacred matter so that it cannot be compromised. "

He added that "the devaluation of the dinar against foreign currencies should not be the first line of defense, nor should it be a means to bridge deficits, shortcomings and failures in the performance of other financial, commercial, investment, tax and customs policies", explaining, "easy solutions that achieve financial value should not be used Limited at the expense of damage to all segments of society caused by inflation, especially the fragile and poor segments. "

He stressed that "we note the inaccuracy of the (some) account of the reduction achieved by the dinar from resources to the public budget, as the correct calculation is that we subtract from the total dollar revenues the share of oil companies, which amounts to 14 billion dollars annually and the payment of debts, interest and external liabilities amounting to more than 5 billion Dollars, in addition to the equipment and materials imported by the government, such as oil derivatives, ration materials, etc., the net of this amount strikes at the new price of the dinar, ”noting that if the dinar’s value is reduced to 1500 dinars per dollar, what the Ministry of Finance gets from the difference is 5 trillion dinars.  

He noted that "the devaluation of the dinar against the dollar will lead to protection and stimulation of the local product is something that many notes suffer because this measure is used by some countries to encourage exports and in the case of Iraq the goal is to provide ingredients to stimulate domestic production and protect it from dumping policy practiced by exporting countries, especially neighboring countries, This goal will not be achieved by reducing the value of the dinar because the price difference is because of the dumping policy or because of the depreciation of the currency of these countries in a very large way. "

Al-Alaq called for controlling random imports and stopping dumping policy through controlling border crossings, as the number of informal border crossings is more than official and strict application of customs duties is an effective application of laws to protect the product and the consumer and anti-dumping.  





http://economy-news.net/content.php?id=20770
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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty Dialectical dialogue between Dr. Ward al-Aqili * and d. Bariq Shipper ** about financial and monetary policies in light of the crises facing the Iraqi government

Post by claud39 on Sun Jun 21, 2020 11:48 am

Dialectical dialogue between Dr. Ward al-Aqili * and d. Bariq Shipper ** about financial and monetary policies in light of the crises facing the Iraqi government


06/20/2020



Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Barik-und-Wared






Dr. Ward Najm Al-Okaili commented (in the following Dr. Ward) on the statements of Dr. Bareq Shubar to Radu site on 8/8/2020 in the "Elite Economic Group" on WhatsApp, with the presence of 178 members of the group consisting of businessmen and elite academics in addition to a number of senior officials in the Iraqi state, and the following controversial dialogue took place between them.

 

Dr.. Take:

I respect very much Dr. Bariq's publications, but I think recommending internal borrowing will only make matters worse and remind us of the austerity policy adopted by the previous government.

 

The domestic financial situation is witnessing a severe shortage of liquidity, the suspension of many private businesses and the increase in unemployment. This requires pumping more domestic liquidity and not withdrawing it from the market. It also requires professionals to urge officials and the media to refrain from calls for measures that lead to an increase in the need for liquidity, as it will exacerbate the damage of the private sector and increase the level of local unemployment, and thus will reduce people's incomes and increase the pressure on the government and its demand to continue providing aid and honors.

 

I believe that all calls should be made in this circumstance to support the private sector, its institutions and businesses through operational packages to overcome its repression resulting from the policies of previous governments, adding to the conditions of the demonstrations and stopping the formation of the government and Crohn's disease. The government must accelerate the delivery of these packages, it is a thousand times better than stopping private activity and turning the millions who live in this sector into an added burden on the government.

 

By the way, increasing domestic liquidity does not only mean increasing the amount of cash printed, but also includes increasing banking transactions and increasing confidence in the banking system and leaving the dollar exchange rate to market forces by a certain amount calculated by reducing the dollar sales quantities and adopting the multiple price policy or the two price policy to separate the import of basic commodities and materials Supported priority between importing luxury and unnecessary goods that can be produced locally.

 

As for the claim that this increases the level of inflation, it is a theoretical claim that depends on the concept of imported inflation only and wants (in terms of whether or not he intends) to keep the level of the cheap dollar exchange rate as it is.

 

I sincerely apologize to Dr. Bariq, the esteemed, but I think what was published was fragmented in a way that affected its content.

 

Dr.. Sparkle an inch

My Excellency Ward Ward Najm. I welcome your criticism of my intellectual thesis, and I do not need to apologize, because I do not see in your intervention a detraction from my personality, but an open dialogue of my thoughts.

 

I fear that you misunderstood my recommendation for internal borrowing as an alternative to external borrowing in the event that this is required to finance an expected fiscal deficit in the next budget. There is no need to explain the reasons that will lead to the emergence of an inevitable decrease in state revenues, as they are known to all because of the collapse in oil prices in half compared to last year.

 

I do not recommend any borrowing, internal or external, but the financial conditions will make it necessary for the country to borrow, especially since you are demanding financial packages to revitalize the economy as other countries do.

 

Let me show you how other countries finance these packages. The German government, for example, has approved a supplementary budget for this year of 150 billion euros and will borrow the entire amount from financial markets by issuing government bonds. The US government has approved a $ 3 trillion package and will finance that with a loan from the US Federal Reserve, thereby increasing the government’s debt to the Fed by $ 27 trillion. America is the only country in the world that imposed its currency on us as an international currency. Until the beginning of the 1970s, it was covered with gold. After that, it became exposed without cover, but it was imposed on Saudi Arabia to sell its oil in dollars and other oil countries followed. Iraq has a successful experience in overcoming the financial crisis in the years 2014-2017, where the budget deficit was funded through the issuance of the so-called government permits, which are short-term bills-like securities sold to local banks and allowed banks to deduct them from the central bank. This means creating cash and pumping liquidity into the economy. The government that received the amounts of these loans disbursed them, that is, to return them to the economic cycle.

 

Dear Sir, These are the ABCs of Economics, which I have been practicing professionally for 45 years, because I know what I'm talking about. And what concerns the risk of inflation by printing money without covering it is a fact witnessed by all who lived in Iraq during the siege period, and I personally lived through it indirectly through my dollar transfers as monthly salaries for 9 families except for aid and other donations.

 

With appreciation and respect for your honorable person.

 

Bariq Muhammad Reda Spar - Berlin

 

Dr.. Take a star

Greetings to you, our honorable doctor.

 

I would like to add the following comments to you for the purpose of scientific and practical benefit:

 

Germany and the United States will finance its issuance from the primary market. America will borrow from the federalist who will pump (additional new money). As for domestic borrowing from the secondary market, it is a process (recycling) of domestic liquidity and there is no new cash addition.

 

Dr.. Glamorous

this is not true. Any borrowing from government or private banks represents an addition to deposits with the banking sector in favor of the customer from the non-banking sector (producers, consumers and the state). This means issuance of money (Money Creation) and with it increase the liquidity meaning the money block in the narrow sense M1 . The government's borrowing from banks is considered the primary market, but selling these bonds or treasury transfers to the central bank is called the secondary market. With the deduction process, the banking sector receives the dinar that was sleeping in the treasury of the central bank. LookAn article by the expert on monetary policy and researcher at the Central Bank, Hussein AtwanAnd the controversy with the government economic adviser d. Abdul Hassan Al-Anbuge, posted on the website of the Iraqi Economist Network.

 

Dr.. Take

Economic theories emphasize the need to inject (new liquidity) in such circumstances. And if there is a theory based on the concept of (rotating) liquidity, I would be grateful to those who guide us for it.

 

Dr.. Glamorous

There is no disagreement about the task of monetary policy in managing the money supply (the monetary block), which is subject to daily money creation ( i.e. money creation), i.e. injecting new liquidity by banks when it gives loans to non-banking sectors including the private sector on the part of the money destruction (Money destruction) In the language of the central bank, sterilization is cash, that is, the withdrawal of liquidity from another side.

 

Dr.. Take

The conditions for printing the Iraqi currency in the 1990s are completely different from the current conditions. Iraq at that time was forbidden to export oil, but now it sells oil and holds the dollar and can raise the exchange rate to a higher level as happened in Lebanon or the adoption of multiple price policy or at least leave the exchange rate to determine the market forces and the Iraqi dinars will increase in volume against the dollar to greater needs Current and future.

 

Dr. Barik

The problem does not lie in printing the currency (paper dinar) per se, as this process is currently under way as I understood it from an official in the central bank, where the printing and printing of the dinar is in the treasury of the central bank and does not come out of it only after the bank receives for that dollar from the Ministry of Finance (the monetary process ) Or from the private sector and through its export or tourism activities. This, unfortunately, is not present in Iraq, unlike the situation in Lebanon, Jordan, or Turkey. As you know, the only source of foreign currency is the Iraqi government, which has a monopoly on the export of crude oil. The central bank law prevents it from lending to the government by withdrawing from foreign currency reserves because the function of this reserve is to finance the deficit in the trade balance and the balance of payments and not the fiscal deficit in the public budget. In the event that the law is exceeded, the value of the Iraqi dinar will decrease against the dollar.

 

Regarding the idea of ​​floating the Iraqi dinar, this will actually lead to increasing the volume of Iraqi dinars, but to the loss of its purchasing power in the absence of local production that covers the volume of domestic demand, in the absence of export and tourism industries that can supply the country with foreign currency, as is the case in Turkey.

 

Dr.. Take

The whole world (after krona) will return to the old economics theories (self-sufficiency) in an attempt to ensure that most of its needs are met locally after the krona pandemic crisis demonstrated structural and practical weaknesses in theories of specialization and comparative advantage, and we in Iraq are still (talking) only about supporting the sector The private. How do you think turning words into action without pumping big new liquidity into the local market and limiting this import diarrhea? How is this pumping done without increasing the size of the local currency and increasing banking?

 

Dr.. Glamorous

I don’t know what do you mean by ancient economics theories and their relationship to self-sufficiency. According to my reading of the history of economic thought, the mercantilist theory is considered one of the oldest economic theories (the seventeenth century, in the early capitalism stage and the process of accumulation of primitive capital, which coincided historically with the domination of the colonial powers over the countries of Africa and Asia and the plunder of their wealth). This theory promoted self-sufficiency in the sense of concentrating production inside the country and creating cash (in today's concept of monetary issuance) by achieving a surplus in the trade balance by all possible means, including the use of force and waging wars against other countries. Colonial Britain used this method in India with the destruction of the local textile industries and forcing them to grow and export cotton to be manufactured in Britain and then exported to India. This theory views foreign trade as a winning-losing process according to the zero equation. In recent years, this theory has reappeared in a new dress, as practiced by President Trump under the name "America First" and declaring trade war on all countries that enjoy comparative advantages and achieve surpluses in their trade balance. And it is clear that Trump's pure trading mentality and zero-sum game does not realize that most countries ’trade surplus returns to America to buy government bonds or US shares.

 

Unlike the old mercantile theory that builds on a large state intervention in the economy, the classical theory that emerged in the eighteenth century with the beginnings of the industrial revolution relies on market forces as the invisible hand that coordinates the conflicting interests of producers and consumers and achieving balance in the market. Adam Smith and David Ricardo laid the intellectual foundation for economic liberalism and freedom of international trade, and Ricardo demonstrated his well-known model and numbers of benefits countries derive from labor distribution and international specialization. Since then, international trade has been growing and prospering at very high rates, and with it the pace of globalization of production and financial markets has increased after the end of the Cold War in the early 1990s.

 

We agree on the need to support the private sector, not with government words and promises, but through a comprehensive program and policy package that is not only limited to pumping cash liquidity, but must include the provision of material requirements from qualified infrastructure and human resources as well as legal frameworks and investor protection.

 

Dr.. Take

Your honorable side knows that the level of inflation does not have to rise in the case of an increase in the size of the monetary block, but that it can decrease even if the mass increases or increases its rotation if the additional local production volume is higher than that increase, and it is strange that everyone focuses on one side and neglect the side The second is (volume of production).

 

Dr.. Glamorous

It is true. But as I mentioned, Iraq lacks a local agricultural and industrial production that covers the country’s need. And the past years attest to the leakage of purchasing power generated by government spending outside the country, as you describe in the form of import diarrhea.

 

Dr.. Take

I remind everyone of the actions of the Ministry of Agriculture, which was subjected to a lot of attack and criticism, but the ministry has withstood its work in favor of Iraq and the market was filled with local agricultural products with low prices, and if we remained on the chaos of importers and beneficiaries, the food situation in Iraq would be tragic.

 

Dr. Barik

These are encouraging beginnings and I have previously called for focusing on agricultural development: a top priority because investment in them is relatively little and the return is fast compared to industrial expansion. The growth of agricultural production will provide a good ground for industrial development, especially for food industry Agro Industry

 

 

 

Dr.. Take

Most economic theories in the case of a dual confrontation (unemployment - inflation) are concerned with tackling unemployment even if inflation increases, but I personally think that Iraq has a special advantage as it can reduce unemployment without exposure to large (domestic) inflation by adopting a correct monetary policy. Do you, my honorable Janab, agree that wasting millions of dollars to import trivial goods that can be produced locally, or the central bank’s investment in (foreign) investments, the lack of improvement in the local banking system, the lack of confidence in the banking deal, or the failure to finance local production sector activities Is monetary policy so bad?

 

Dr.. Glamorous

Yes, I completely agree with you, but the foreign currency reserves must be preserved to finance the necessary imports that go into the domestic production of capital goods and advanced technologies.

 

Dr.. Take

With my sincere regards and appreciation.

 

Dr.. Glamorous

I greatly appreciate and respect your sincere and inspiring views on the dialogue.

 I thank distinguished colleague Mesbah Kamal for reviewing the original text and editing it linguistically. 

Sparkle an inch

 

(*) Industrialist, Iraqi businessman and civil activist

(**) International economist and global coordinator of the Iraqi Economist Network

 

Copyright reserved for the Iraqi Economist Network. Republishing is permitted provided the source is indicated. June 21, 2020

To download a PDF file, click on the following link







http://iraqieconomists.net/ar/2020/06/20/%d8%ad%d9%88%d8%a7%d8%b1-%d8%ac%d8%af%d9%84%d9%8a-%d8%a8%d9%8a%d9%86-%d8%af-%d9%88%d8%a7%d8%b1%d8%af-%d9%86%d8%ac%d9%85-%d8%a7%d9%84%d8%b9%d9%83%d9%8a%d9%84%d9%8a-%d9%88-%d8%af-%d8%a8%d8%a7%d8%b1/
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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty On the Central Bank of Iraq report devoted to maintaining the value of the dinar against the dollar

Post by claud39 on Sun Jun 21, 2020 1:27 pm

On the Central Bank of Iraq report devoted to maintaining the value of the dinar against the dollar




  • MONDAY, 08-06-2020




Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 8-1591642220



Written by: Dr. Imad Abdul Latif Salem
 
This report, tagged with "Reducing the Iraqi dinar exchange rate, determinants and alternatives" (issued by the Central Bank of Iraq), begins by emphasizing that devaluation of the local currency DEVALUATION has a different meaning in the rest of the world, compared to Iraq.
This "reduction" means (in the rest of the world): "Reducing the official exchange rate of the local currency against an international reference currency, so that the number of units of foreign currency that can be obtained against a unit of the national currency decreases. As for Iraq, this is intended to reduce The value of the Iraqi dinar against the US dollar .. It differs from the low exchange rate DEPRECIATION subject to the mechanism of supply and demand in the market "!!!!.

What is the difference between the two cases exactly?
I swear to you that I do not know what the difference is ... and there is absolutely nothing wrong with this "confession".


All that I was able to understand from this premise mined in "complex" concepts ((and with a limited mind as a mind)) is that there are those who demand the central bank to devalue the "Iraqi" dinar, against the value of the "American" dollar .. so does the central bank have to do that ? The answer is, of course.
Do you accept that the central bank do that? The answer is: No, of course .. A thousand no.


And over a period of 14 pages, which is the full size of the report, the Central Bank does not tell us what the role of monetary policy is in the current circumstances, nor does it provide us with any assistance to get out of the catastrophic crisis that we are discussing, resolving and marshing now.

He only talks (and for 13 pages) about "determinants" .. As for "alternatives", they only exist in the second half of page 14 (and the last) of the report.
These "alternatives" from the bank's point of view summarize what "others" must do, and not what the central bank can do as well, to help overcome the current plight of Iraq (and not of course, in playing the full role).

This report reviews all the failures, the chronic structural imbalances in the economy, the mismanagement of the economic file .. and this is all borne by the “others”, and its consequences are borne by many other bodies, the most important of which is the Ministry of Finance (which is unfortunately for them, and only the general public knows) .. As for It is (i.e. the central bank), as the main role was played: achieving foreign reserves of $ 70 billion ... and maintaining an inflation rate ranging from 2.O 3.0% - (which is better than the prevailing rate of inflation in the United States of America) .. and all This has already been achieved, but without indicating the feasibility of this in a country where the “official” unemployment rate is 12% (excluding underemployment) .. and about 40% with it.


What about the main role of economic policy (including monetary policy) in achieving a sensitive “trade-off” between inflation and unemployment in a country like Iraq?
Well .. we do not know anything .. so why did the central bank not tell us (in this report), what can it do, in front of everyone (other than him) unable to provide solutions?


In the report, we clearly see something of “populism”, which we should not beg to defend our “method” of preserving the value of the dinar against the dollar (and not from the exchange rate policy currently adopted by the bank, according to the distinction mentioned in the introduction to the report). On many pages of the report, it is frequently referred to as an "axiom" that is not disputed, neither by the simple people, nor by the economic elites (with their enormous mental potentials and superpowers).

And this populist - self-evident "discourse" is: O poor people, poor employees, poor pensioners, beneficiaries of scarce social welfare benefits ... be careful .. any attempt to reconsider the exchange rate of the dinar against the dollar will make you (you In particular, and not others), you pay a very high price ... and the consequences for that will be on you (and not on others) ... very dire .. and you and your families can die of hunger !!!!!.

When we write what we are writing here now, we are not naive to call for "float" .. nor "criminals" to demand action in the notorious "shock" method ... nor "traitors" to defend extinction before the "features" of the IMF .. Rather, we believe that It is time now, and indeed it is necessary now, for the central bank to study proposals related to the necessity of working (gradually) with a realistic, "managed" exchange rate, and calculated accurately, so that the effect of the "new" exchange rate is less harmful, and costly, on fragile groups. From the population .. It is also a truism to know that there is no decision without "costs", and no policy without "returns".


The most important arguments for the central bank in its defense of the "sanctity" (value) of the current Iraqi dinar against the value of the US dollar is the argument (or factor No. 1) on page 3 of the report.


This "Factor 1" deals with the state of the external sector "Balance of Payments". Although the report acknowledges the “rentier” of the Iraqi economy, its unilateralism, its strong openness to the outside, and its chronic structural imbalance, which extends from previous decades ago, it nevertheless affirms that Iraq has a “strong position in its external sector”, and this appears Obviously through the "adjusted current account surplus", and through the adequacy of the foreign reserves of $ 70 billion.


And Iraq "does not suffer from a balance of payments deficit" (without saying that this is very normal, because Iraq is still exporting oil with a value greater than all imports).


However ... despite all of that, the report presents to us on page 10 of it a table dealing with the effect of reducing the dinar's "exchange rate" against the dollar, at the main doors of the state's general budget, and assumes two rates of reduction, 10% and 20%, to show the effect of "reduction" On the public budget in both cases.


This table is based on the state's general budget data for the fiscal year 2019 , and on the data of the “estimated” general budget project for 2020..and relying on an exported oil price of $ 56 per barrel, and on an average export rate of 3,880 barrels per day .. is this reasonable, acceptable, in A report issued by the most important economic institution, is the institution that monetary policy in Iraq ??


Is it reasonable and acceptable for the report to say (on page 4 of it) that “the adjusted current account achieved a surplus of 5.75% of GDP in 2019, and is expected to continue in 2020 and beyond” !!!!!.


How were these "future" expectations built with this degree of confidence, contrary to the expectations of all economic experts, throughout this world, including those of international economic organizations ??.


Finally ...
the central bank has always been the school where it worked, and graduated from, the best experts, professors, and economists in Iraq.


So we hope that no one will donate to defend this report, or to attack the criticism directed against it.


This report was a sincere and noble effort to defend monetary policy, and it was and will remain, and in all countries of the world, a subject of controversy and permanent disagreement between its main parties, namely: stakeholders, policy makers, political leaders, those interested in economic affairs, and those involved in general economic policy.


We are not in a fight (or war) with each other.
We all belong to Iraq, we search, and work together, in the interest of this Iraq .. before any other consideration.



http://www.non14.net/public/124599
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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty The faltering government economic reform foreshadows a "catastrophe" ravaging Iraq ... high debt and the Iraqi dinar on the verge of collapse

Post by claud39 on Sun Jun 21, 2020 1:39 pm

[size=30]The faltering government economic reform foreshadows a "catastrophe" ravaging Iraq ... high debt and the Iraqi dinar on the verge of collapse[/size]


2020-06-20





Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 %D8%A7%D9%85%D9%88%D8%A7%D9%84-%D8%A7%D9%84%D8%B9%D8%B1%D8%A7%D9%82










Yassin Iraq: Baghdad

The economic expert, Nabil Al-Marsoumi, warned of the danger of exacerbating Iraq's debts due to internal and external borrowing, to finance employee salaries, due to the stifling financial crisis that is ravaging the country due to the global oil price collapse, stressing that the solution is to maximize state revenues and streamline spending to control the financial situation and maintain The Iraqi dinar from the collapse.

The seriousness of the shortage of reserves

The credit standing and the size of the public debt service. The external debt in Iraq is $ 25.444 billion, except for the Gulf’s $ 41 billion in debt, which is not currently effective debt. The internal debt is 40.810 trillion dinars. On the other hand, debt service premiums reached 16.364 trillion dinars in 2019. According to the new borrowing law, the government will borrow 15 trillion dinars from government banks and $ 5 billion from the International Monetary Fund to cover urgent operational needs for this year only, which constitute about 7 trillion dinars per month, or 84 trillion dinars annually. And when adding new debts, Iraq’s internal debt becomes 55.810 trillion dinars, and its external debt is 30.444 billion dollars. Far from the misleading standards that the World Bank uses to measure the burden of debt, this level of public debt in Iraq is significant, especially as debt service premiums will rise to more than 20 trillion dinars annually and they constitute between 40-50% of the Iraqi export revenues currently, which is a ratio Significant, especially since these revenues are closely related to fluctuating oil prices. Therefore, the urgent need for real economic reform appears, which cannot be done in Iraq without being preceded by real political reform. On the contrary, the country is heading towards the unknown due to the new and major economic challenges that Iraq currently faces and which it will face in the future, especially if the financial crisis extends for another year then Iraq will be forced To take painful and harsh measures, including reducing the exchange rate of the Iraqi dinar. ”

Parliamentary Finance

A member of the Finance Committee in the Iraqi parliament, Jamal Kujer, said that "there are files that, in the event of the government's success, can be dealt with to provide the country with sums of money that help to overcome the crisis, and dispense with resorting to loans, and provide large sums of money that exceed the value of those loans."

And Cougar continued, "Among those files that need urgent procedures are the file of the alien (imaginary employees), whose numbers are between 100 - 300 thousand space in the Ministry of Defense, of whom about 146 thousand within the popular crowd, a file that costs the budget one billion and 50 million dollars annually, At the very least, and the multi-salary file is one of the dangerous files. There are more than 250 thousand people who get more than 3 monthly salaries, and you need political decisions to stop them.

He stressed that "specialists estimate the total of these salaries at the lowest rate, such that the value of one salary is 400 dollars per month, it will cost 3 billion and 600 million annually, and this is the lowest estimate."

He added, "The border ports file, as there are 6 outlets that are outside the control of the government, and through which the government only gets about two billion dollars annually, while its imports according to the accounts of the Finance Committee are not less than 12 billion dollars, and the government tax and tax file does not The government obtains from it less than one billion, while its imports exceed 12 billion dollars annually.

And the Parliamentary Finance Committee confirmed last Sunday, returning the internal and external borrowing law to the government to not determine the borrowing rate.

Committee member Ahmed Mazhar al-Jubouri said, "The return of Iraq to the Arab incubator and international and Gulf support will help Iraq to overcome the financial crisis soon in addition to exploiting the imports of border outlets to compensate for the decline in oil prices." Next months. ”




https://yesiraq.com/%D8%AA%D8%B9%D8%AB%D8%B1-%D8%A7%D9%84%D8%A5%D8%B5%D9%84%D8%A7%D8%AD-%D8%A7%D9%84%D8%A7%D9%82%D8%AA%D8%B5%D8%A7%D8%AF%D9%8A-%D8%A7%D9%84%D8%AD%D9%83%D9%88%D9%85%D9%8A-%D9%8A%D9%86%D8%B0%D8%B1-%D8%A8/
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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty Re: Follow-up cell: The government may resort to borrowing and printing currency to provide salaries

Post by Jayzze on Sun Jun 21, 2020 8:18 pm

so claude can you explain the following without copying and pasting. so claude   iraq is in dire straits over many things but the main ones are stealing and oil dropping in price. i believe it costs quite a  bit to print money that they least can afford since they cannot pay salaries. secondly they changed the budget from 55 to 30 dollars. third they are planning on skipping the 2020 budget. forth they finally found a pm who wants to do good and they just gave him 60 days when it took decades of screwing up till you have iraq the way it is today.the goi is against borrowing money so they have  real problem so claude how do they solve this?
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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty Re: Follow-up cell: The government may resort to borrowing and printing currency to provide salaries

Post by claud39 on Mon Jun 22, 2020 11:12 am

@Jayzze wrote:so claude can you explain the following without copying and pasting. so claude   iraq is in dire straits over many things but the main ones are stealing and oil dropping in price. i believe it costs quite a  bit to print money that they least can afford since they cannot pay salaries. secondly they changed the budget from 55 to 30 dollars. third they are planning on skipping the 2020 budget. forth they finally found a pm who wants to do good and they just gave him 60 days when it took decades of screwing up till you have iraq the way it is today.the goi is against borrowing money so they have  real problem so claude how do they solve this?



The Minister of Planning discusses with the First Deputy Speaker of the Parliament the mechanisms of supporting and empowering the private sector and encouraging small and medium enterprises




2020-06-18



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The Minister of Planning, Prof. Dr. Khaled Battal Al-Najm, during his meeting with the First Deputy Speaker of the Parliament, Hassan Al-Kaabi, confirmed today, Thursday,

To support the ministry directly to the Iraqi private sector, direct the ministry’s policy towards medium-sized projects, and focus on the provinces to complete ongoing projects with a view to reflecting their achievement on providing services to citizens and restoring the citizen’s confidence in the country, adding that the ministry’s plans will also focus on the agricultural sector, which is an essential pillar for providing food security to the Iraqi citizen He pointed out, in this regard, the work to put in place modern mechanisms to support the local private sector in order to encourage and develop it and achieve real partnership with the public sector, in accordance with the private sector development strategy and the five-year development plan.

Al-Kaabi called on the Ministry of Planning to draw up new and new policies for building the state and redefining the investment plans for Iraq after reviewing the previous classifications of the investment sector, which led to the delay of many projects and stalling others. , And there are medium projects that can be carried out through local administrations, suggesting the return of the Iraqi economic sector activity, especially investment during the next few months,

It took place during the meeting he attended
Representatives Alaa Al-Rubaie, Muzaffar Al-Waeli, and Amjad Al-Oqabi discussed the possibility of conducting field visits that include the most disadvantaged governorates, including Muthanna, Diwaniya, and other poorer governorates.

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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty Re: Follow-up cell: The government may resort to borrowing and printing currency to provide salaries

Post by claud39 on Mon Jun 22, 2020 11:22 am

@claud39 wrote:
@Jayzze wrote:so claude can you explain the following without copying and pasting. so claude   iraq is in dire straits over many things but the main ones are stealing and oil dropping in price. i believe it costs quite a  bit to print money that they least can afford since they cannot pay salaries. secondly they changed the budget from 55 to 30 dollars. third they are planning on skipping the 2020 budget. forth they finally found a pm who wants to do good and they just gave him 60 days when it took decades of screwing up till you have iraq the way it is today.the goi is against borrowing money so they have  real problem so claude how do they solve this?



The Minister of Planning discusses with the First Deputy Speaker of the Parliament the mechanisms of supporting and empowering the private sector and encouraging small and medium enterprises




2020-06-18



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The Minister of Planning, Prof. Dr. Khaled Battal Al-Najm, during his meeting with the First Deputy Speaker of the Parliament, Hassan Al-Kaabi, confirmed today, Thursday,
To support the ministry directly to the Iraqi private sector, direct the ministry’s policy towards medium-sized projects, and focus on the provinces to complete ongoing projects with a view to reflecting their achievement on providing services to citizens and restoring the citizen’s confidence in the country, adding that the ministry’s plans will also focus on the agricultural sector, which is an essential pillar for providing food security to the Iraqi citizen He pointed out, in this regard, the work to put in place modern mechanisms to support the local private sector in order to encourage and develop it and achieve real partnership with the public sector, in accordance with the private sector development strategy and the five-year development plan.
Al-Kaabi called on the Ministry of Planning to draw up new and new policies for building the state and redefining the investment plans for Iraq after reviewing the previous classifications of the investment sector, which led to the delay of many projects and stalling others. , And there are medium projects that can be carried out through local administrations, suggesting the return of the Iraqi economic sector activity, especially investment during the next few months,
It took place during the meeting he attended
Representatives Alaa Al-Rubaie, Muzaffar Al-Waeli, and Amjad Al-Oqabi discussed the possibility of conducting field visits that include the most disadvantaged governorates, including Muthanna, Diwaniya, and other poorer governorates.
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US official confirms his country's intention to support Iraq financially ... and reveals the content of "strategic dialogue"


June 11, 2020


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A State Department official revealed that the administration of his country confirmed its intention to support Iraq to face the financial repercussions of the Corona crisis and the decline in oil prices, during the strategic dialogue between Washington and Baghdad, Thursday.


Assistant Secretary of State for Near East Affairs David Schenker confirmed that Washington would support "the new Iraqi government in international financial institutions to counter the effects of Coved 19 and the decline in oil prices ...".


He mentioned that the strategic dialogue with Iraq addressed political, security, cultural and economic issues in addition to his approach to the energy sector, "expressing his hope that the Iraqi-American Joint Coordination Committee will meet in Washington this summer to discuss all issues."


The dialogue session took place through the video circle, in an optimistic atmosphere, with Mustafa Al-Kazemi, known for his good relations with Washington, as prime minister, and also the retreat of the pro-Iranian factions until this moment.


"What we want is a strong bilateral security arrangement with Iraq, which includes exercises, management of advanced military systems, joint exercises and the study of the two countries' officers in the military schools of the two countries," Schenker said.


He stressed that "security is the cornerstone of stability and provides the conditions for economic development and prosperity," noting that Washington insists on "helping Iraq defeat ISIS permanently and bringing stability to Iraq."


He added that "Iranian-backed groups are working against us by fanning sectarianism, extremism and terrorism, and this is what we discussed today."


Militias loyal to Iran in Iraq launched missile attacks against American interests in Iraq, before Washington proceeded to liquidate the commander of the Quds Force, Iranian Qassem Soleimani.


Representatives voted pro-Iranian blocs in the Iraqi parliament at the time to end the presence of foreign forces in the country.


Schenker said that the government of Iraq renewed "our commitment to protect our forces and coalition forces present in Iraq at the invitation of the Iraqi government to fight ISIS."


He added, "We have made clear that we will continue to assist the Iraqi government not only at the security level, but also in implementing the reforms required by the Iraqi people."


It should be noted that on the eve of the launch of the dialogue, a missile landed in the Green Zone, where the US embassy is located, in what appeared to be a message reminding of the intentions of Iraqi militias loyal to Iran.


In addition to the security file, Iraq suffers economically, as a result of the collapse in oil prices, which threatens the government's inability to pay the salaries of eight million government employees and retirees.


https://www.alhurra.com/iraq/2020/06/11/%D9%85%D8%B3%D8%A4%D9%88%D9%84-%D8%A3%D9%85%D9%8A%D8%B1%D9%83%D9%8A-%D9%8A%D8%A4%D9%83%D8%AF-%D8%B9%D8%B2%D9%85-%D8%A8%D9%84%D8%A7%D8%AF%D9%87-%D8%AF%D8%B9%D9%85-%D8%A7%D9%84%D8%B9%D8%B1%D8%A7%D9%82-%D9%85%D8%A7%D9%84%D9%8A%D8%A7-%D9%88%D9%8A%D9%83%D8%B4%D9%81-%D9%85%D8%B6%D9%85%D9%88%D9%86-%D8%A7%D9%84%D8%AD%D9%88%D8%A7%D8%B1-%D8%A7%D9%84%D8%A7%D8%B3%D8%AA%D8%B1%D8%A7%D8%AA%D9%8A%D8%AC%D9%8A



https://www.dinardaily.net/t93018-an-american-iraqi-strategic-dialogue-a-matter-of-interests-and-expectations
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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty Al-Kazemi announces that the Cabinet has prepared a white paper for economic and financial reform

Post by claud39 on Mon Jun 22, 2020 5:59 pm

@claud39 wrote:
@claud39 wrote:
@Jayzze wrote:so claude can you explain the following without copying and pasting. so claude   iraq is in dire straits over many things but the main ones are stealing and oil dropping in price. i believe it costs quite a  bit to print money that they least can afford since they cannot pay salaries. secondly they changed the budget from 55 to 30 dollars. third they are planning on skipping the 2020 budget. forth they finally found a pm who wants to do good and they just gave him 60 days when it took decades of screwing up till you have iraq the way it is today.the goi is against borrowing money so they have  real problem so claude how do they solve this?



The Minister of Planning discusses with the First Deputy Speaker of the Parliament the mechanisms of supporting and empowering the private sector and encouraging small and medium enterprises




2020-06-18



Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 159249985414b2ff9c99789ff9e9feee12088adaed--%D9%85%D8%B9_%D8%A7%D9%84%D9%86%D8%A7%D8%A6%D8%A8_%D8%A7%D9%84%D8%A7%D9%88%D9%84







The Minister of Planning, Prof. Dr. Khaled Battal Al-Najm, during his meeting with the First Deputy Speaker of the Parliament, Hassan Al-Kaabi, confirmed today, Thursday,
To support the ministry directly to the Iraqi private sector, direct the ministry’s policy towards medium-sized projects, and focus on the provinces to complete ongoing projects with a view to reflecting their achievement on providing services to citizens and restoring the citizen’s confidence in the country, adding that the ministry’s plans will also focus on the agricultural sector, which is an essential pillar for providing food security to the Iraqi citizen He pointed out, in this regard, the work to put in place modern mechanisms to support the local private sector in order to encourage and develop it and achieve real partnership with the public sector, in accordance with the private sector development strategy and the five-year development plan.
Al-Kaabi called on the Ministry of Planning to draw up new and new policies for building the state and redefining the investment plans for Iraq after reviewing the previous classifications of the investment sector, which led to the delay of many projects and stalling others. , And there are medium projects that can be carried out through local administrations, suggesting the return of the Iraqi economic sector activity, especially investment during the next few months,
It took place during the meeting he attended
Representatives Alaa Al-Rubaie, Muzaffar Al-Waeli, and Amjad Al-Oqabi discussed the possibility of conducting field visits that include the most disadvantaged governorates, including Muthanna, Diwaniya, and other poorer governorates.
Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 159249985414b2ff9c99789ff9e9feee12088adaed--%D9%85%D8%B9_%D8%A7%D9%84%D9%86%D8%A7%D8%A6%D8%A8_%D8%A7%D9%84%D8%A7%D9%88%D9%84







US official confirms his country's intention to support Iraq financially ... and reveals the content of "strategic dialogue"


June 11, 2020


Enlarge this image Click to see fullsize
Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 2014-11-18T120000Z_1103926209_GM1EABJ0EDF01_RTRMADP_3_MIDEAST-CRISIS-IRAQ-PORT








A State Department official revealed that the administration of his country confirmed its intention to support Iraq to face the financial repercussions of the Corona crisis and the decline in oil prices, during the strategic dialogue between Washington and Baghdad, Thursday.

Assistant Secretary of State for Near East Affairs David Schenker confirmed that Washington would support "the new Iraqi government in international financial institutions to counter the effects of Coved 19 and the decline in oil prices ...".

He mentioned that the strategic dialogue with Iraq addressed political, security, cultural and economic issues in addition to his approach to the energy sector, "expressing his hope that the Iraqi-American Joint Coordination Committee will meet in Washington this summer to discuss all issues."

The dialogue session took place through the video circle, in an optimistic atmosphere, with Mustafa Al-Kazemi, known for his good relations with Washington, as prime minister, and also the retreat of the pro-Iranian factions until this moment.

"What we want is a strong bilateral security arrangement with Iraq, which includes exercises, management of advanced military systems, joint exercises and the study of the two countries' officers in the military schools of the two countries," Schenker said.

He stressed that "security is the cornerstone of stability and provides the conditions for economic development and prosperity," noting that Washington insists on "helping Iraq defeat ISIS permanently and bringing stability to Iraq."

He added that "Iranian-backed groups are working against us by fanning sectarianism, extremism and terrorism, and this is what we discussed today."

Militias loyal to Iran in Iraq launched missile attacks against American interests in Iraq, before Washington proceeded to liquidate the commander of the Quds Force, Iranian Qassem Soleimani.

Representatives voted pro-Iranian blocs in the Iraqi parliament at the time to end the presence of foreign forces in the country.

Schenker said that the government of Iraq renewed "our commitment to protect our forces and coalition forces present in Iraq at the invitation of the Iraqi government to fight ISIS."

He added, "We have made clear that we will continue to assist the Iraqi government not only at the security level, but also in implementing the reforms required by the Iraqi people."

It should be noted that on the eve of the launch of the dialogue, a missile landed in the Green Zone, where the US embassy is located, in what appeared to be a message reminding of the intentions of Iraqi militias loyal to Iran.

In addition to the security file, Iraq suffers economically, as a result of the collapse in oil prices, which threatens the government's inability to pay the salaries of eight million government employees and retirees.

https://www.alhurra.com/iraq/2020/06/11/%D9%85%D8%B3%D8%A4%D9%88%D9%84-%D8%A3%D9%85%D9%8A%D8%B1%D9%83%D9%8A-%D9%8A%D8%A4%D9%83%D8%AF-%D8%B9%D8%B2%D9%85-%D8%A8%D9%84%D8%A7%D8%AF%D9%87-%D8%AF%D8%B9%D9%85-%D8%A7%D9%84%D8%B9%D8%B1%D8%A7%D9%82-%D9%85%D8%A7%D9%84%D9%8A%D8%A7-%D9%88%D9%8A%D9%83%D8%B4%D9%81-%D9%85%D8%B6%D9%85%D9%88%D9%86-%D8%A7%D9%84%D8%AD%D9%88%D8%A7%D8%B1-%D8%A7%D9%84%D8%A7%D8%B3%D8%AA%D8%B1%D8%A7%D8%AA%D9%8A%D8%AC%D9%8A



https://www.dinardaily.net/t93018-an-american-iraqi-strategic-dialogue-a-matter-of-interests-and-expectations


Al-Kazemi announces that the Cabinet has prepared a white paper for economic and financial reform




22/06/2020





Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 21590





Economy News _ Baghdad



Prime Minister Mustafa Al-Kazemi announced, on Monday, the details of the white paper prepared by the Council of Ministers, including economic, financial and administrative reforms, while identifying 4 sectors to address the current situation.

Al-Kazemi’s office said in a statement received by “Al-Iqtisad News” that “today, the Prime Minister held a meeting with the chairman and members of the Parliamentary Committee on Economy and Investment, during which the white paper prepared by the Council of Ministers was discussed, and includes economic, financial and administrative reforms, plans and strategies to meet the challenges facing the country.” .

Al-Kazemi listened, according to the statement, to "the proposals and opinions of the members of the Parliamentary Committee, the vision of the committee regarding the proposed solutions, and the obstacles facing the process of developing the Iraqi economy and activating the various sectors." 

"The importance of the current stage witnessing more cooperation between the executive and legislative branches, in a way that leads to serving the citizen and realizing the public interest of the country, and overcoming the challenges it faces," the Prime Minister stressed, "indicating" his keenness to hold continuous meetings with the parliamentary committees and representatives, as this communication It will reflect positively on the progress of the situation in Iraq. "

Al-Kazemi said, "His government prepared a white paper for the expected reforms, and took preliminary recommendations that are being discussed prior to taking them forward, indicating the need for complementarity between the government and the parliament to support these reforms."

He pointed out that "mismanagement and absolute dependence on oil revenues is what brought us to the situation we are witnessing, and we seek to address it by working to activate the sectors of agriculture, industry, tourism, investment, and others to maximize the country's imports."





claud39
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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty Border outlets pledge to maximize state revenues

Post by claud39 on Mon Jun 22, 2020 6:09 pm

@claud39 wrote:
@claud39 wrote:
@claud39 wrote:
@Jayzze wrote:so claude can you explain the following without copying and pasting. so claude   iraq is in dire straits over many things but the main ones are stealing and oil dropping in price. i believe it costs quite a  bit to print money that they least can afford since they cannot pay salaries. secondly they changed the budget from 55 to 30 dollars. third they are planning on skipping the 2020 budget. forth they finally found a pm who wants to do good and they just gave him 60 days when it took decades of screwing up till you have iraq the way it is today.the goi is against borrowing money so they have  real problem so claude how do they solve this?



The Minister of Planning discusses with the First Deputy Speaker of the Parliament the mechanisms of supporting and empowering the private sector and encouraging small and medium enterprises




2020-06-18



Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 159249985414b2ff9c99789ff9e9feee12088adaed--%D9%85%D8%B9_%D8%A7%D9%84%D9%86%D8%A7%D8%A6%D8%A8_%D8%A7%D9%84%D8%A7%D9%88%D9%84







The Minister of Planning, Prof. Dr. Khaled Battal Al-Najm, during his meeting with the First Deputy Speaker of the Parliament, Hassan Al-Kaabi, confirmed today, Thursday,
To support the ministry directly to the Iraqi private sector, direct the ministry’s policy towards medium-sized projects, and focus on the provinces to complete ongoing projects with a view to reflecting their achievement on providing services to citizens and restoring the citizen’s confidence in the country, adding that the ministry’s plans will also focus on the agricultural sector, which is an essential pillar for providing food security to the Iraqi citizen He pointed out, in this regard, the work to put in place modern mechanisms to support the local private sector in order to encourage and develop it and achieve real partnership with the public sector, in accordance with the private sector development strategy and the five-year development plan.
Al-Kaabi called on the Ministry of Planning to draw up new and new policies for building the state and redefining the investment plans for Iraq after reviewing the previous classifications of the investment sector, which led to the delay of many projects and stalling others. , And there are medium projects that can be carried out through local administrations, suggesting the return of the Iraqi economic sector activity, especially investment during the next few months,
It took place during the meeting he attended
Representatives Alaa Al-Rubaie, Muzaffar Al-Waeli, and Amjad Al-Oqabi discussed the possibility of conducting field visits that include the most disadvantaged governorates, including Muthanna, Diwaniya, and other poorer governorates.
Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 159249985414b2ff9c99789ff9e9feee12088adaed--%D9%85%D8%B9_%D8%A7%D9%84%D9%86%D8%A7%D8%A6%D8%A8_%D8%A7%D9%84%D8%A7%D9%88%D9%84






US official confirms his country's intention to support Iraq financially ... and reveals the content of "strategic dialogue"


June 11, 2020


Enlarge this image Click to see fullsize
Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 2014-11-18T120000Z_1103926209_GM1EABJ0EDF01_RTRMADP_3_MIDEAST-CRISIS-IRAQ-PORT








A State Department official revealed that the administration of his country confirmed its intention to support Iraq to face the financial repercussions of the Corona crisis and the decline in oil prices, during the strategic dialogue between Washington and Baghdad, Thursday.
Assistant Secretary of State for Near East Affairs David Schenker confirmed that Washington would support "the new Iraqi government in international financial institutions to counter the effects of Coved 19 and the decline in oil prices ...".
He mentioned that the strategic dialogue with Iraq addressed political, security, cultural and economic issues in addition to his approach to the energy sector, "expressing his hope that the Iraqi-American Joint Coordination Committee will meet in Washington this summer to discuss all issues."
The dialogue session took place through the video circle, in an optimistic atmosphere, with Mustafa Al-Kazemi, known for his good relations with Washington, as prime minister, and also the retreat of the pro-Iranian factions until this moment.
"What we want is a strong bilateral security arrangement with Iraq, which includes exercises, management of advanced military systems, joint exercises and the study of the two countries' officers in the military schools of the two countries," Schenker said.
He stressed that "security is the cornerstone of stability and provides the conditions for economic development and prosperity," noting that Washington insists on "helping Iraq defeat ISIS permanently and bringing stability to Iraq."
He added that "Iranian-backed groups are working against us by fanning sectarianism, extremism and terrorism, and this is what we discussed today."
Militias loyal to Iran in Iraq launched missile attacks against American interests in Iraq, before Washington proceeded to liquidate the commander of the Quds Force, Iranian Qassem Soleimani.
Representatives voted pro-Iranian blocs in the Iraqi parliament at the time to end the presence of foreign forces in the country.
Schenker said that the government of Iraq renewed "our commitment to protect our forces and coalition forces present in Iraq at the invitation of the Iraqi government to fight ISIS."
He added, "We have made clear that we will continue to assist the Iraqi government not only at the security level, but also in implementing the reforms required by the Iraqi people."
It should be noted that on the eve of the launch of the dialogue, a missile landed in the Green Zone, where the US embassy is located, in what appeared to be a message reminding of the intentions of Iraqi militias loyal to Iran.
In addition to the security file, Iraq suffers economically, as a result of the collapse in oil prices, which threatens the government's inability to pay the salaries of eight million government employees and retirees.
https://www.alhurra.com/iraq/2020/06/11/%D9%85%D8%B3%D8%A4%D9%88%D9%84-%D8%A3%D9%85%D9%8A%D8%B1%D9%83%D9%8A-%D9%8A%D8%A4%D9%83%D8%AF-%D8%B9%D8%B2%D9%85-%D8%A8%D9%84%D8%A7%D8%AF%D9%87-%D8%AF%D8%B9%D9%85-%D8%A7%D9%84%D8%B9%D8%B1%D8%A7%D9%82-%D9%85%D8%A7%D9%84%D9%8A%D8%A7-%D9%88%D9%8A%D9%83%D8%B4%D9%81-%D9%85%D8%B6%D9%85%D9%88%D9%86-%D8%A7%D9%84%D8%AD%D9%88%D8%A7%D8%B1-%D8%A7%D9%84%D8%A7%D8%B3%D8%AA%D8%B1%D8%A7%D8%AA%D9%8A%D8%AC%D9%8A



https://www.dinardaily.net/t93018-an-american-iraqi-strategic-dialogue-a-matter-of-interests-and-expectations


Al-Kazemi announces that the Cabinet has prepared a white paper for economic and financial reform




22/06/2020





Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 21590





Economy News _ Baghdad


Prime Minister Mustafa Al-Kazemi announced, on Monday, the details of the white paper prepared by the Council of Ministers, including economic, financial and administrative reforms, while identifying 4 sectors to address the current situation.
Al-Kazemi’s office said in a statement received by “Al-Iqtisad News” that “today, the Prime Minister held a meeting with the chairman and members of the Parliamentary Committee on Economy and Investment, during which the white paper prepared by the Council of Ministers was discussed, and includes economic, financial and administrative reforms, plans and strategies to meet the challenges facing the country.” .
Al-Kazemi listened, according to the statement, to "the proposals and opinions of the members of the Parliamentary Committee, the vision of the committee regarding the proposed solutions, and the obstacles facing the process of developing the Iraqi economy and activating the various sectors." 
"The importance of the current stage witnessing more cooperation between the executive and legislative branches, in a way that leads to serving the citizen and realizing the public interest of the country, and overcoming the challenges it faces," the Prime Minister stressed, "indicating" his keenness to hold continuous meetings with the parliamentary committees and representatives, as this communication It will reflect positively on the progress of the situation in Iraq. "
Al-Kazemi said, "His government prepared a white paper for the expected reforms, and took preliminary recommendations that are being discussed prior to taking them forward, indicating the need for complementarity between the government and the parliament to support these reforms."
He pointed out that "mismanagement and absolute dependence on oil revenues is what brought us to the situation we are witnessing, and we seek to address it by working to activate the sectors of agriculture, industry, tourism, investment, and others to maximize the country's imports."








Border outlets pledge to maximize state revenues




06/22/2020



Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 21588







Economy News _ Baghdad



On Monday, the Border Ports Authority attributed the rise in revenues in three days to six billion dinars, to the monitoring and supervision of the authority over the departments operating in the ports, pledging to maximize state revenues.

The authority said in a statement, "Economy News" received a copy of it, that "until this moment, no security authority has embarked on enhancing the security reality of our federal outlets."

She added, "The numbers that were mentioned on the social networking site Facebook, which dealt with the rise in revenues in three days to 6 billion dinars, came as a result of the monitoring and control of the border entry authority, despite the closure of land ports with Iran and Kuwait, and the zeroing of customs duties for food, health and agricultural materials."

The commission affirmed, "its keenness to tighten control and perform its supervisory role on the departments operating in the border outlets and to achieve its policy in preventing excessive public funds and maximizing government revenue in a way that contributes to overcoming the current financial and economic crisis."





claud39
claud39
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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty Re: Follow-up cell: The government may resort to borrowing and printing currency to provide salaries

Post by claud39 on Tue Jun 23, 2020 5:27 pm

@claud39 wrote:
@claud39 wrote:
@claud39 wrote:
@claud39 wrote:
@Jayzze wrote:so claude can you explain the following without copying and pasting. so claude   iraq is in dire straits over many things but the main ones are stealing and oil dropping in price. i believe it costs quite a  bit to print money that they least can afford since they cannot pay salaries. secondly they changed the budget from 55 to 30 dollars. third they are planning on skipping the 2020 budget. forth they finally found a pm who wants to do good and they just gave him 60 days when it took decades of screwing up till you have iraq the way it is today.the goi is against borrowing money so they have  real problem so claude how do they solve this?



The Minister of Planning discusses with the First Deputy Speaker of the Parliament the mechanisms of supporting and empowering the private sector and encouraging small and medium enterprises




2020-06-18



Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 159249985414b2ff9c99789ff9e9feee12088adaed--%D9%85%D8%B9_%D8%A7%D9%84%D9%86%D8%A7%D8%A6%D8%A8_%D8%A7%D9%84%D8%A7%D9%88%D9%84







The Minister of Planning, Prof. Dr. Khaled Battal Al-Najm, during his meeting with the First Deputy Speaker of the Parliament, Hassan Al-Kaabi, confirmed today, Thursday,
To support the ministry directly to the Iraqi private sector, direct the ministry’s policy towards medium-sized projects, and focus on the provinces to complete ongoing projects with a view to reflecting their achievement on providing services to citizens and restoring the citizen’s confidence in the country, adding that the ministry’s plans will also focus on the agricultural sector, which is an essential pillar for providing food security to the Iraqi citizen He pointed out, in this regard, the work to put in place modern mechanisms to support the local private sector in order to encourage and develop it and achieve real partnership with the public sector, in accordance with the private sector development strategy and the five-year development plan.
Al-Kaabi called on the Ministry of Planning to draw up new and new policies for building the state and redefining the investment plans for Iraq after reviewing the previous classifications of the investment sector, which led to the delay of many projects and stalling others. , And there are medium projects that can be carried out through local administrations, suggesting the return of the Iraqi economic sector activity, especially investment during the next few months,
It took place during the meeting he attended
Representatives Alaa Al-Rubaie, Muzaffar Al-Waeli, and Amjad Al-Oqabi discussed the possibility of conducting field visits that include the most disadvantaged governorates, including Muthanna, Diwaniya, and other poorer governorates.
Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 159249985414b2ff9c99789ff9e9feee12088adaed--%D9%85%D8%B9_%D8%A7%D9%84%D9%86%D8%A7%D8%A6%D8%A8_%D8%A7%D9%84%D8%A7%D9%88%D9%84




US official confirms his country's intention to support Iraq financially ... and reveals the content of "strategic dialogue"


June 11, 2020


Enlarge this image Click to see fullsize
Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 2014-11-18T120000Z_1103926209_GM1EABJ0EDF01_RTRMADP_3_MIDEAST-CRISIS-IRAQ-PORT








A State Department official revealed that the administration of his country confirmed its intention to support Iraq to face the financial repercussions of the Corona crisis and the decline in oil prices, during the strategic dialogue between Washington and Baghdad, Thursday.
Assistant Secretary of State for Near East Affairs David Schenker confirmed that Washington would support "the new Iraqi government in international financial institutions to counter the effects of Coved 19 and the decline in oil prices ...".
He mentioned that the strategic dialogue with Iraq addressed political, security, cultural and economic issues in addition to his approach to the energy sector, "expressing his hope that the Iraqi-American Joint Coordination Committee will meet in Washington this summer to discuss all issues."
The dialogue session took place through the video circle, in an optimistic atmosphere, with Mustafa Al-Kazemi, known for his good relations with Washington, as prime minister, and also the retreat of the pro-Iranian factions until this moment.
"What we want is a strong bilateral security arrangement with Iraq, which includes exercises, management of advanced military systems, joint exercises and the study of the two countries' officers in the military schools of the two countries," Schenker said.
He stressed that "security is the cornerstone of stability and provides the conditions for economic development and prosperity," noting that Washington insists on "helping Iraq defeat ISIS permanently and bringing stability to Iraq."
He added that "Iranian-backed groups are working against us by fanning sectarianism, extremism and terrorism, and this is what we discussed today."
Militias loyal to Iran in Iraq launched missile attacks against American interests in Iraq, before Washington proceeded to liquidate the commander of the Quds Force, Iranian Qassem Soleimani.
Representatives voted pro-Iranian blocs in the Iraqi parliament at the time to end the presence of foreign forces in the country.
Schenker said that the government of Iraq renewed "our commitment to protect our forces and coalition forces present in Iraq at the invitation of the Iraqi government to fight ISIS."
He added, "We have made clear that we will continue to assist the Iraqi government not only at the security level, but also in implementing the reforms required by the Iraqi people."
It should be noted that on the eve of the launch of the dialogue, a missile landed in the Green Zone, where the US embassy is located, in what appeared to be a message reminding of the intentions of Iraqi militias loyal to Iran.
In addition to the security file, Iraq suffers economically, as a result of the collapse in oil prices, which threatens the government's inability to pay the salaries of eight million government employees and retirees.
https://www.alhurra.com/iraq/2020/06/11/%D9%85%D8%B3%D8%A4%D9%88%D9%84-%D8%A3%D9%85%D9%8A%D8%B1%D9%83%D9%8A-%D9%8A%D8%A4%D9%83%D8%AF-%D8%B9%D8%B2%D9%85-%D8%A8%D9%84%D8%A7%D8%AF%D9%87-%D8%AF%D8%B9%D9%85-%D8%A7%D9%84%D8%B9%D8%B1%D8%A7%D9%82-%D9%85%D8%A7%D9%84%D9%8A%D8%A7-%D9%88%D9%8A%D9%83%D8%B4%D9%81-%D9%85%D8%B6%D9%85%D9%88%D9%86-%D8%A7%D9%84%D8%AD%D9%88%D8%A7%D8%B1-%D8%A7%D9%84%D8%A7%D8%B3%D8%AA%D8%B1%D8%A7%D8%AA%D9%8A%D8%AC%D9%8A



https://www.dinardaily.net/t93018-an-american-iraqi-strategic-dialogue-a-matter-of-interests-and-expectations


Al-Kazemi announces that the Cabinet has prepared a white paper for economic and financial reform




22/06/2020





Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 21590





Economy News _ Baghdad
Prime Minister Mustafa Al-Kazemi announced, on Monday, the details of the white paper prepared by the Council of Ministers, including economic, financial and administrative reforms, while identifying 4 sectors to address the current situation.
Al-Kazemi’s office said in a statement received by “Al-Iqtisad News” that “today, the Prime Minister held a meeting with the chairman and members of the Parliamentary Committee on Economy and Investment, during which the white paper prepared by the Council of Ministers was discussed, and includes economic, financial and administrative reforms, plans and strategies to meet the challenges facing the country.” .
Al-Kazemi listened, according to the statement, to "the proposals and opinions of the members of the Parliamentary Committee, the vision of the committee regarding the proposed solutions, and the obstacles facing the process of developing the Iraqi economy and activating the various sectors." 
"The importance of the current stage witnessing more cooperation between the executive and legislative branches, in a way that leads to serving the citizen and realizing the public interest of the country, and overcoming the challenges it faces," the Prime Minister stressed, "indicating" his keenness to hold continuous meetings with the parliamentary committees and representatives, as this communication It will reflect positively on the progress of the situation in Iraq. "
Al-Kazemi said, "His government prepared a white paper for the expected reforms, and took preliminary recommendations that are being discussed prior to taking them forward, indicating the need for complementarity between the government and the parliament to support these reforms."
He pointed out that "mismanagement and absolute dependence on oil revenues is what brought us to the situation we are witnessing, and we seek to address it by working to activate the sectors of agriculture, industry, tourism, investment, and others to maximize the country's imports."






Border outlets pledge to maximize state revenues




06/22/2020



Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 21588







Economy News _ Baghdad

On Monday, the Border Ports Authority attributed the rise in revenues in three days to six billion dinars, to the monitoring and supervision of the authority over the departments operating in the ports, pledging to maximize state revenues.
The authority said in a statement, "Economy News" received a copy of it, that "until this moment, no security authority has embarked on enhancing the security reality of our federal outlets."
She added, "The numbers that were mentioned on the social networking site Facebook, which dealt with the rise in revenues in three days to 6 billion dinars, came as a result of the monitoring and control of the border entry authority, despite the closure of land ports with Iran and Kuwait, and the zeroing of customs duties for food, health and agricultural materials."
The commission affirmed, "its keenness to tighten control and perform its supervisory role on the departments operating in the border outlets and to achieve its policy in preventing excessive public funds and maximizing government revenue in a way that contributes to overcoming the current financial and economic crisis."






Dialectical dialogue between Dr. Ward al-Aqili * and d. Bariq Shipper ** about financial and monetary policies in light of the crises facing the Iraqi government
 
06/20/2020
 
Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Barik-und-Wared
 

Dr. Ward Najm Al-Okaili (hereinafter Dr. Ward) commented on the statements of Dr. Bareq Shubar to Radu site on 8/8/2020 in the "Elite Economic Group" on WhatsApp, with the presence of 178 members of the group consisting of businessmen and elite academics in addition to a number of senior officials in the Iraqi state, and the following controversial dialogue took place between them.
 
Dr.. Take:
I respect very much Dr. Bariq's publications, but I think recommending internal borrowing will only make matters worse and remind us of the austerity policy adopted by the previous government.
 The domestic financial situation is witnessing a severe shortage of liquidity, the suspension of many private businesses and the increase in unemployment. This requires pumping more domestic liquidity and not withdrawing it from the market. It also requires professionals to urge officials and the media to refrain from calls for measures that lead to an increase in the need for liquidity, as it will exacerbate the damage of the private sector and increase the level of local unemployment, and thus will reduce people's incomes and increase the pressure on the government and its demand to continue providing aid and honors.
 I believe that all calls should be made in this circumstance to support the private sector, its institutions and businesses through operational packages to overcome its repression resulting from the policies of previous governments, adding to the conditions of the demonstrations and stopping the formation of the government and Crohn's disease. The government must accelerate the provision of these packages, it is a thousand times better than stopping private activity and turning the millions who live in this sector into an added burden on the government.
 By the way, increasing domestic liquidity does not only mean increasing the amount of cash printed, but also includes increasing banking transactions and increasing confidence in the banking system and leaving the exchange rate to the dollar for market forces by a certain amount calculated by reducing the amounts of dollar sales and adopting the multiple price policy or the two-price policy to separate the import of basic commodities and materials Supported priority between importing luxury and unnecessary goods that can be produced locally.
 As for the claim that this increases the level of inflation, it is a theoretical claim that depends on the concept of imported inflation only and wants (in terms of whether or not he intends) to keep the level of the cheap dollar exchange rate as it is.
 I sincerely apologize to Dr. Bariq, the esteemed, but I think what was published was fragmented in a way that affected its content.
 Dr.. Sparkle an inch
My Excellency Ward Ward Najm. I welcome your criticism of my intellectual thesis, and I do not need to apologize, because I do not see in your intervention a derogation from my personality, but an open dialogue of my thoughts.
 I fear that you misunderstood my recommendation for internal borrowing as an alternative to external borrowing in the event that this is required to finance an expected fiscal deficit in the next budget. There is no need to explain the reasons that will lead to the emergence of an inevitable decrease in state revenues, as they are known to all because of the collapse of oil prices in half compared to last year.
 I do not recommend any borrowing, internal or external, but the financial conditions will make it necessary for the country to borrow, especially since you are demanding financial packages to revitalize the economy as other countries do.
 Let me show you how other countries finance these packages. The German government, for example, has approved a supplementary budget for this year of 150 billion euros and will borrow the entire amount from financial markets by issuing government bonds. The US government has approved a $ 3 trillion package and will finance that with a loan from the US Federal Reserve, thereby increasing the government’s debt to the Fed by $ 27 trillion. America is the only country in the world that imposed its currency on us as an international currency. Until the beginning of the 1970s, it was covered with gold. After that, it became exposed without cover, but it was imposed on Saudi Arabia to sell its oil in dollars and other oil countries followed. Iraq has a successful experience in overcoming the financial crisis in the years 2014-2017, where the budget deficit was funded through the issuance of the so-called government permits, which are short-term bills-like securities sold to local banks and allowed banks to deduct them from the central bank. This means creating cash and pumping liquidity into the economy. The government that received the amounts of these loans disbursed them, that is, to return them to the economic cycle.
 Dear Sir, these are the ABCs of Economics, which I have been practicing professionally for 45 years, because I know what I'm talking about. And what concerns the risk of inflation by printing money without covering it is a fact witnessed by all who lived in Iraq during the siege period, and I personally lived through it indirectly through my dollar transfers as monthly salaries for 9 families except for aid and other donations.
 With appreciation and respect for your honorable person.
 Barik Muhammad Reda Shebar - Berlin
 
Dr.. Take a star
Greetings to you, our honorable doctor.
 I would like to add the following comments to you for the purpose of scientific and practical benefit:
 Germany and the United States will finance its issuance from the primary market. America will borrow from the federalist who will pump (additional new money). As for domestic borrowing from the secondary market, it is a process (recycling) of domestic liquidity and there is no new cash addition.
 Dr.. Glamorous
this is not true. Any borrowing from government or private banks represents an addition to deposits with the banking sector in favor of the customer from the non-banking sector (producers, consumers and the state). This means issuance of money (Money Creation) and with it increase the liquidity meaning the money block in the narrow sense M1 . The government's borrowing from banks is considered the primary market, but selling these bonds or treasury transfers to the central bank is called the secondary market. With the deduction process, the banking sector receives the dinar that was sleeping in the treasury of the Central Bank. Look An article by the expert on monetary policy and researcher at the Central Bank, Hussein Atwan And the controversy with the government economic adviser d. Abdul Hassan Al-Anbuge, published on the website of the Iraqi Economist Network.
 Dr.. Take
Economic theories emphasize the need to inject (new liquidity) in such circumstances. And if there is a theory based on the concept of (rotating) liquidity, I would be grateful to those who guide us for it.
 Dr.. Glamorous
There is no disagreement about the task of monetary policy in managing the money supply (the monetary block), which is subject to daily money creation ( i.e. money creation), i.e. injecting new liquidity by banks when it gives loans to non-banking sectors including the private sector on the part of the money destruction (Money destruction) In the language of the central bank, sterilization is cash, that is, the withdrawal of liquidity from another side.
 Dr.. Take
The conditions for printing the Iraqi currency in the 1990s are completely different from the current conditions. Iraq at that time was forbidden to export oil, but now it sells oil and holds the dollar and can raise the exchange rate to a higher level as happened in Lebanon or the adoption of multiple price policy or at least leave the exchange rate to determine market forces and the Iraqi dinars will increase in volume against the dollar to greater needs Current and future.
 Dr. Barricades
The problem does not lie in printing the currency (paper dinar) per se, as this process is currently under way as I understood it from an official in the central bank, where the printing and printing of the dinar is in the treasury of the central bank and does not come out of it only after the bank receives for that dollar from the Ministry of Finance (the monetary process ) Or from the private sector and through its export or tourism activities. This, unfortunately, is not present in Iraq, unlike the situation in Lebanon, Jordan, or Turkey. As you know, the only source of foreign currency is the Iraqi government, which has a monopoly on the export of crude oil. The central bank law prevents it from lending to the government by withdrawing from foreign currency reserves because the function of this reserve is to finance the deficit in the trade balance and the balance of payments and not the fiscal deficit in the public budget. In the event that the law is exceeded, the value of the Iraqi dinar will decrease against the dollar.
 Regarding the idea of floating the Iraqi dinar, this will actually lead to increasing the volume of Iraqi dinars, but to the loss of its purchasing power in the absence of local production that covers the volume of domestic demand, in the absence of export and tourism industries that can supply the country with foreign currency, as is the case in Turkey.
 Dr.. Take
The whole world (after krona) will return to the old economics theories (self-sufficiency) in an attempt to ensure that most of its needs are met locally after the krona pandemic crisis demonstrated structural and practical weaknesses in theories of specialization and comparative advantage, and we in Iraq are still (talking) only about supporting the sector The private. How do you think turning words into action without pumping huge new liquidity into the local market and limiting this import diarrhea? How is this pumping done without increasing the size of the local currency and increasing banking?
 Dr.. Glamorous
I don’t know what do you mean by ancient economics theories and their relationship to self-sufficiency. According to my reading of the history of economic thought, the Mercantilist theory is considered one of the oldest economic theories (the seventeenth century, in the early capitalism stage and the process of accumulation of primitive capital, which coincided historically with the domination of the colonial powers over the countries of Africa and Asia and the plunder of their wealth). This theory promoted self-sufficiency in the sense of concentrating production inside the country and creating cash (in today's concept of monetary issuance) by achieving a surplus in the trade balance by all possible means, including the use of force and waging wars against other countries. Colonial Britain used this method in India with the destruction of the local textile industries and forcing them to grow and export cotton in order to be manufactured in Britain and then exported to India. This theory views foreign trade as a winning-losing process according to the zero equation. In recent years, this theory has reappeared in a new garment, as practiced by President Trump under the name "America First" and declaring trade war on all countries that enjoy comparative advantages and achieve surpluses in their trade balance. It is clear that Trump's pure trading mentality and zero-based game does not realize that most countries ’trade surplus returns to America to buy government bonds or US shares.
 Unlike the old mercantile theory that builds on a large state intervention in the economy, the classical theory that emerged in the eighteenth century with the beginnings of the industrial revolution relies on market forces as the invisible hand that coordinates the conflicting interests of producers and consumers and achieving balance in the market. Adam Smith and David Ricardo laid the intellectual foundation for economic liberalism and freedom of international trade, and Ricardo demonstrated his well-known model and numbers of benefits countries derive from labor distribution and international specialization. Since then, international trade has been growing and prospering at very high rates, and with it the pace of globalization of production and financial markets has increased after the end of the Cold War in the early 1990s.
 We agree on the need to support the private sector, not with government words and promises, but through a comprehensive program and policy package that is not only limited to pumping cash liquidity, but must include the provision of material requirements from qualified infrastructure and human resources as well as legal frameworks and investor protection.
 Dr.. Take
Your honorable side knows that the level of inflation is not necessary to rise in the case of an increase in the size of the monetary block, but that it can decrease even if the mass increases or increases its rotation if the additional local production volume is higher than that increase, and it is strange that everyone focuses on one side and neglect the side The second is (volume of production).

 Dr.. Glamorous
It is true. But as I mentioned, Iraq lacks a local agricultural and industrial production that covers the country’s need. And the past years attest to the leakage of purchasing power generated by government spending outside the country, as you have described in the form of import diarrhea.
 Dr.. Take
I remind everyone of the actions of the Ministry of Agriculture, which was subjected to a lot of attack and criticism, but the ministry held out and its work was in the interest of Iraq and the market was filled with local agricultural products with low prices, and if we remained on the chaos of importers and beneficiaries, the food situation in Iraq would be tragic.
 Dr. Barricades
These are encouraging beginnings and I have previously called for focusing on agricultural development: a top priority because investment in them is relatively little and the return is fast compared to industrial expansion. The growth of agricultural production will provide a good ground for industrial development, especially for food industry Agro Industry
Dr.. Take
Most economic theories in the event of a dual confrontation (unemployment - inflation) is concerned with tackling unemployment even if inflation increases, but I personally think that Iraq has a special advantage as it can reduce unemployment without exposure to large (domestic) inflation by adopting a correct monetary policy. Do you, my honorable Janab, agree that wasting millions of dollars to import trivial goods that can be produced locally, or the central bank’s investment in (foreign) investments, the lack of improvement in the local banking system, the lack of confidence in the banking deal, or the failure to finance local production sector activities Is monetary policy so bad?
Dr.. Glamorous
Yes, I completely agree with you, but the foreign currency reserves should be preserved to finance the necessary imports that go into the process of domestic production of capital goods and advanced technologies.
 Dr.. Take
With my sincere regards and appreciation.
 Dr.. Glamorous
I greatly appreciate and respect your sincere and inspiring views on the dialogue.
 I thank fellow Mesbah Kamal for reviewing the original text and editing it linguistically. 
Sparkle an inch
(*) Industrialist, Iraqi businessman and civil activist
(**) International economist and global coordinator of the Iraqi Economist Network


Copyright reserved for the Iraqi Economist Network. Republishing is permitted provided the source is indicated. June 21, 2020


To download a PDF file, click on the following link


A dialectical dialogue between Dr. Ward Najm Al-Okaili and Dr. Bariq Shubr on financial and monetary policies in light of the crises facing the Iraqi government - liberated



Dr .. Bariq Muhammad Reda Shebar












[size=16][size=16]https://www.dinardaily.net/post?p=367524&mode=quote
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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty Jamal al-Karbouli: The financial problem of Iraq will not be solved except by stopping the hard currency bleeding and canceling the corruption laws

Post by claud39 on Wed Jun 24, 2020 6:22 pm

Jamal al-Karbouli: The financial problem of Iraq will not be solved except by stopping the hard currency bleeding and canceling the corruption laws




24-06-2020






Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Image


Baghdad / Al-Akhbar,

the head of the solution party, Dr. Jamal Karbouli, saw on Wednesday that the financial crisis in Iraq can only be resolved by stopping the hard currency bleeding and canceling the laws of corruption.

Karbouli stated in a tweet with "Twitter" that "the parliament’s approval of the lending law is a good opportunity that gives Al-Kazemi time to pick up the self from the suffocating Corona pandemic and the incendiary salary crisis, but in the end the loans must be paid, and Iraq’s financial problem will only be solved by stopping the hard currency bleeding and abolishing the corruption laws ".




Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Image



Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Image









https://www.ikhnews.com/index.php?page=article&id=219739
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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty Re: Follow-up cell: The government may resort to borrowing and printing currency to provide salaries

Post by claud39 on Thu Jun 25, 2020 4:02 pm

@claud39 wrote:Al-Alaq: The devaluation of the dinar should not be the first line of defense to confront the financial crisis




19/06/2020




Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 4248




The Economy News - Baghdad:
The Governor of the Central Bank of Iraq, Ali Al-Alaq, stressed that the devaluation of the dinar against foreign currencies should not be the first line of defense to confront the financial crisis and bridge the budget deficit.
In a letter addressed to the former Assistant Secretary-General of the League of Arab States, Legal Adviser to the Prime Minister, Dr. Fadel Muhammad Jawad, and obtained by Al-Iqtisad News, Al-Alaq said that “by virtue of the central bank’s responsibility for monetary policy, the study and review of the exchange rate is an ongoing matter from Before formations of the bank and its board of directors based on in-depth studies that take into consideration all factors and variables, "noting that" the exchange rate is not a sacred matter so that it cannot be compromised. "
He added that "the devaluation of the dinar against foreign currencies should not be the first line of defense, nor should it be a means to bridge deficits, shortcomings and failures in the performance of other financial, commercial, investment, tax and customs policies", explaining, "easy solutions that achieve financial value should not be used Limited at the expense of damage to all segments of society caused by inflation, especially the fragile and poor segments. "
He stressed that "we note the inaccuracy of the (some) account of the reduction achieved by the dinar from resources to the public budget, as the correct calculation is that we subtract from the total dollar revenues the share of oil companies, which amounts to 14 billion dollars annually and the payment of debts, interest and external liabilities amounting to more than 5 billion Dollars, in addition to the equipment and materials imported by the government, such as oil derivatives, ration materials, etc., the net of this amount strikes at the new price of the dinar, ”noting that if the dinar’s value is reduced to 1500 dinars per dollar, what the Ministry of Finance gets from the difference is 5 trillion dinars.  
He noted that "the devaluation of the dinar against the dollar will lead to protection and stimulation of the local product is something that many notes suffer because this measure is used by some countries to encourage exports and in the case of Iraq the goal is to provide ingredients to stimulate domestic production and protect it from dumping policy practiced by exporting countries, especially neighboring countries, This goal will not be achieved by reducing the value of the dinar because the price difference is because of the dumping policy or because of the depreciation of the currency of these countries in a very large way. "
Al-Alaq called for controlling random imports and stopping dumping policy through controlling border crossings, as the number of informal border crossings is more than official and strict application of customs duties is an effective application of laws to protect the product and the consumer and anti-dumping.  




http://economy-news.net/content.php?id=20770


Foreign reserves held by the central bank are not surplus funds




25/06/2020





Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 4248



The real financial surplus is the government’s revenue that is represented by the Ministry of Finance that exceeds its public expenditures during a fiscal year. If the Ministry of Finance achieves revenues (crude oil sales in general) with a value greater than its expenditures (investment spending and current spending) it will achieve a budget surplus.

 That the government invest it, either internally or externally in the form of sovereign funds or investment funds, etc., and vice versa if public revenues are less than expenditures and then achieve a real deficit that requires its financing, either by searching for additional revenues, enhancing existing revenues, or resorting to internal borrowing and / or Outer .

Here it is necessary to clarify that the foreign reserves held by the Central Bank are not surplus funds, but rather accumulate as a result of a specific mechanism in which the Central Bank conducts what is called the process of monetization, as the Ministry of Finance sells the largest part of its dollar revenues to the Central Bank with a view to obtaining the Iraqi dinar Issued by the Central Bank of Iraq to implement its domestic spending, and as long as the Central Bank of Iraq adopts a fixed price to exchange the Iraqi dinar against the US dollar, and it seeks through the window of selling the currency to maintain this constant value of the dinar, so the Iraqi dinar holder has a right to foreign reserves, which is a cover for the local currency .

We can refer here to the concept of foreign reserves according to the balance of payments guide and the international investment situation issued by the International Monetary Fund (are the external assets that are at the disposal of the monetary authority and are subject to its control to meet the needs of the balance of financing payments or interference in the exchange markets to influence the exchange rate of the currency, or other Related purposes (such as maintaining confidence in the local currency and forming a basis for external borrowing) and the reserve assets must be assets in foreign currency and assets that already exist, and excluding potential assets. The concept of reserve assets is based on the concepts of “control” and “accessibility” For the monetary authorities .

Based on the definition of foreign reserves above, the following can be installed :

1.    It provides a local currency cap and an exchange rate support tool .

2.    It is the primary tool of the Central Bank to intervene and adjust imbalances in the balance of payments structure.

3.    It provides an important element in setting a country's creditworthiness, and enhances the country's credit rating in international transactions .

The optimal level of foreign reserves - i.e. the minimum value of foreign reserves that the monetary authority must possess and that is calculated according to internationally approved standards - represents the ability of the monetary authority to defend the local currency exchange rate. The most important of these standards (the money supply standard, which represents the adequacy of foreign reserves to cover the supply of the local currency, and the trade standard, which represents the number of months in which foreign reserves can finance the country's imports of goods and services) and adopt these standards assuming a shock that affects the accumulation of foreign reserves almost Exactly .



With regard to managing foreign reserves, there are internationally accepted rules that depend on managing foreign reserves in terms of their liquid assets (securities, deposits, gold ...) and it envisions geographical distribution, currency diversification and other factors that reduce exposure to risks and provide returns that ensure sustainability These reserves .



It should be noted here that for internal borrowing by the government, whether funded by the Central Bank of Iraq directly any direct deduction of securities issued by the Ministry of Finance - which is prohibited by the Law of the Central Bank of Iraq - or indirectly by deduction in favor of local commercial banks, for both A negative impact on foreign reserves if we assume that the government’s priority is to finance that part of the expenditure represented by workers ’compensation, as this part is reflected in consumer spending, which is mainly met by imported goods and services, which in turn will generate a derivative demand for foreign currency and hence the exit of a portion Of foreign reserves to finance these imports, and this effect will continue until the date of maturity of the securities .



While the external borrowing will positively reflect on the accumulation of foreign reserves, as long as the Ministry of Finance will monetize it for the purpose of obtaining the local currency, and handing the foreign currency to the central bank to be added to the foreign reserves .



Central Bank Governor



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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty The President of the Republic assures the Governor of the Central Bank of the necessity to follow a balanced monetary policy

Post by claud39 on Thu Jun 25, 2020 4:04 pm

@claud39 wrote:
@claud39 wrote:Al-Alaq: The devaluation of the dinar should not be the first line of defense to confront the financial crisis




19/06/2020




Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 4248




The Economy News - Baghdad:
The Governor of the Central Bank of Iraq, Ali Al-Alaq, stressed that the devaluation of the dinar against foreign currencies should not be the first line of defense to confront the financial crisis and bridge the budget deficit.
In a letter addressed to the former Assistant Secretary-General of the League of Arab States, Legal Adviser to the Prime Minister, Dr. Fadel Muhammad Jawad, and obtained by Al-Iqtisad News, Al-Alaq said that “by virtue of the central bank’s responsibility for monetary policy, the study and review of the exchange rate is an ongoing matter from Before formations of the bank and its board of directors based on in-depth studies that take into consideration all factors and variables, "noting that" the exchange rate is not a sacred matter so that it cannot be compromised. "
He added that "the devaluation of the dinar against foreign currencies should not be the first line of defense, nor should it be a means to bridge deficits, shortcomings and failures in the performance of other financial, commercial, investment, tax and customs policies", explaining, "easy solutions that achieve financial value should not be used Limited at the expense of damage to all segments of society caused by inflation, especially the fragile and poor segments. "
He stressed that "we note the inaccuracy of the (some) account of the reduction achieved by the dinar from resources to the public budget, as the correct calculation is that we subtract from the total dollar revenues the share of oil companies, which amounts to 14 billion dollars annually and the payment of debts, interest and external liabilities amounting to more than 5 billion Dollars, in addition to the equipment and materials imported by the government, such as oil derivatives, ration materials, etc., the net of this amount strikes at the new price of the dinar, ”noting that if the dinar’s value is reduced to 1500 dinars per dollar, what the Ministry of Finance gets from the difference is 5 trillion dinars.  
He noted that "the devaluation of the dinar against the dollar will lead to protection and stimulation of the local product is something that many notes suffer because this measure is used by some countries to encourage exports and in the case of Iraq the goal is to provide ingredients to stimulate domestic production and protect it from dumping policy practiced by exporting countries, especially neighboring countries, This goal will not be achieved by reducing the value of the dinar because the price difference is because of the dumping policy or because of the depreciation of the currency of these countries in a very large way. "
Al-Alaq called for controlling random imports and stopping dumping policy through controlling border crossings, as the number of informal border crossings is more than official and strict application of customs duties is an effective application of laws to protect the product and the consumer and anti-dumping.  



http://economy-news.net/content.php?id=20770


Foreign reserves held by the central bank are not surplus funds




25/06/2020





Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 4248



The real financial surplus is the government’s revenue that is represented by the Ministry of Finance that exceeds its public expenditures during a fiscal year. If the Ministry of Finance achieves revenues (crude oil sales in general) with a value greater than its expenditures (investment spending and current spending) it will achieve a budget surplus.
 That the government invest it, either internally or externally in the form of sovereign funds or investment funds, etc., and vice versa if public revenues are less than expenditures and then achieve a real deficit that requires its financing, either by searching for additional revenues, enhancing existing revenues, or resorting to internal borrowing and / or Outer .
Here it is necessary to clarify that the foreign reserves held by the Central Bank are not surplus funds, but rather accumulate as a result of a specific mechanism in which the Central Bank conducts what is called the process of monetization, as the Ministry of Finance sells the largest part of its dollar revenues to the Central Bank with a view to obtaining the Iraqi dinar Issued by the Central Bank of Iraq to implement its domestic spending, and as long as the Central Bank of Iraq adopts a fixed price to exchange the Iraqi dinar against the US dollar, and it seeks through the window of selling the currency to maintain this constant value of the dinar, so the Iraqi dinar holder has a right to foreign reserves, which is a cover for the local currency .
We can refer here to the concept of foreign reserves according to the balance of payments guide and the international investment situation issued by the International Monetary Fund (are the external assets that are at the disposal of the monetary authority and are subject to its control to meet the needs of the balance of financing payments or interference in the exchange markets to influence the exchange rate of the currency, or other Related purposes (such as maintaining confidence in the local currency and forming a basis for external borrowing) and the reserve assets must be assets in foreign currency and assets that already exist, and excluding potential assets. The concept of reserve assets is based on the concepts of “control” and “accessibility” For the monetary authorities .
Based on the definition of foreign reserves above, the following can be installed :
1.    It provides a local currency cap and an exchange rate support tool .
2.    It is the primary tool of the Central Bank to intervene and adjust imbalances in the balance of payments structure.
3.    It provides an important element in setting a country's creditworthiness, and enhances the country's credit rating in international transactions .
The optimal level of foreign reserves - i.e. the minimum value of foreign reserves that the monetary authority must possess and that is calculated according to internationally approved standards - represents the ability of the monetary authority to defend the local currency exchange rate. The most important of these standards (the money supply standard, which represents the adequacy of foreign reserves to cover the supply of the local currency, and the trade standard, which represents the number of months in which foreign reserves can finance the country's imports of goods and services) and adopt these standards assuming a shock that affects the accumulation of foreign reserves almost Exactly .


With regard to managing foreign reserves, there are internationally accepted rules that depend on managing foreign reserves in terms of their liquid assets (securities, deposits, gold ...) and it envisions geographical distribution, currency diversification and other factors that reduce exposure to risks and provide returns that ensure sustainability These reserves .


It should be noted here that for internal borrowing by the government, whether funded by the Central Bank of Iraq directly any direct deduction of securities issued by the Ministry of Finance - which is prohibited by the Law of the Central Bank of Iraq - or indirectly by deduction in favor of local commercial banks, for both A negative impact on foreign reserves if we assume that the government’s priority is to finance that part of the expenditure represented by workers ’compensation, as this part is reflected in consumer spending, which is mainly met by imported goods and services, which in turn will generate a derivative demand for foreign currency and hence the exit of a portion Of foreign reserves to finance these imports, and this effect will continue until the date of maturity of the securities .


While the external borrowing will positively reflect on the accumulation of foreign reserves, as long as the Ministry of Finance will monetize it for the purpose of obtaining the local currency, and handing the foreign currency to the central bank to be added to the foreign reserves .


Central Bank Governor





[size=36]The President of the Republic assures the Governor of the Central Bank of the necessity to follow a balanced monetary policy[/size]


[size=36]4/25/2020
[/size]


[size=36]Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Index-5
[/size]



Today, Thursday, the President of the Republic assured the Governor of the Central Bank of the necessity of adopting a balanced monetary policy and strengthening the financial position of the country.


The Media Office of the Presidency of the Republic said, in a statement received by Al-Rashid, that “President Barham Saleh received today, Central Bank Governor Ali Mohsen Ismail Al-Alaq, and stressed during the meeting the need to follow a balanced monetary policy, and work to strengthen the financial situation through diversification of state resources and rationalization of spending The government, especially in the current circumstances in which the country faces the Corona pandemic, and low oil imports.





The President of the Republic stressed, according to the statement, "the importance of following rational financial policies that would achieve the supreme national interest and assist Iraq in overcoming the current crisis and achieving economic stability for citizens."




In turn, Al-Alaq reviewed, "The role of the central bank to reduce the economic repercussions of the Corona pandemic, expressing thanks and appreciation for the interest shown by the President of the Republic to the bank in this sensitive circumstance, and its direct guidance in this regard."




https://www.alrasheedmedia.com/2020/06/04/269351/
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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty The central bank issues an explanation about the concept of foreign currency reserves

Post by claud39 on Thu Jun 25, 2020 4:08 pm

[size=30]The central bank issues an explanation about the concept of foreign currency reserves[/size]






2020.06.25





Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 A9e0fabee-34006-202006251042






People - Baghdad

  

The Governor of the Central Bank of Iraq, Ali Ismail, issued a clarification on Thursday about the concept of foreign currency reserves and its uses.  



Ismail said in a statement that "people" received a copy of it, (June 25, 2020), that "regarding the uses and concept of foreign currency reserves (cash, deposits, bonds, gold) with the central bank, unfortunately some people understand the foreign reserves of the central bank as a surplus invested in the outside".

  

He added that "the real financial surplus the government has from surplus funds that it invests in various forms such as sovereign funds and investment funds, and generations funds and others ... As for the reserves at the central bank they correspond to the dinar issued to the government or others it is a cover for the local currency and must not be less than the level of adequacy It is determined by international principles, or else the value of the local currency (the debt) will collapse, as happened in the previous system.

  

He continued: "As for how the reserve is managed in terms of the type of currencies and the type of instruments, they are governed by internationally recognized rules and in all central banks, and we follow the same rules and in the subject are complex and broad technical details." 

 

It is worth noting that when the government borrows internally, it is tantamount to withdrawing from foreign reserves because the dinar it borrows is pumped into the market and turns into a demand for mostly imported goods and goods and the payment of foreign liabilities, and it (the government) does not put a dollar in exchange for it leading to the withdrawal and reduction of foreign reserves.  



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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty Clarification on foreign reserves in the Central Bank of Iraq

Post by claud39 on Thu Jun 25, 2020 6:38 pm

Clarification on foreign reserves in the Central Bank of Iraq




June 25, 2020





Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 News-159311215688376








The real financial surplus is the government’s revenue that is represented by the Ministry of Finance that exceeds its public expenditures during a fiscal year.
 If the Ministry of Finance achieves revenues (crude oil sales in general) with a value greater than its expenditures (investment spending and current spending) it will achieve a budget surplus. That the government invest it, either internally or externally in the form of sovereign funds or investment funds, etc., and vice versa if public revenues are less than expenditures and then achieve a real deficit that requires its financing, either by searching for additional revenues, enhancing existing revenues, or resorting to internal borrowing and / or Outer.

Here it is necessary to clarify that the foreign reserves held by the Central Bank are not surplus funds, but rather accumulate as a result of a specific mechanism in which the Central Bank conducts what is called the process of monetization, as the Ministry of Finance sells the largest part of its dollar revenues to the Central Bank with a view to obtaining the Iraqi dinar Issued by the Central Bank of Iraq to implement its domestic spending, and as long as the Central Bank of Iraq adopts a fixed price to exchange the Iraqi dinar against the US dollar, and it seeks through the window of selling the currency to maintain this constant value of the dinar, so the Iraqi dinar holder has a right to foreign reserves, which is a cover for the local currency .

We can refer here to the concept of foreign reserves according to the balance of payments guide and the international investment situation issued by the International Monetary Fund (are the external assets that are at the disposal of the monetary authority and are subject to its control to meet the needs of the balance of financing payments or interference in the exchange markets to influence the exchange rate of the currency, or other Related purposes (such as maintaining confidence in the local currency and forming a basis for external borrowing) and the reserve assets must be assets in foreign currency and assets that already exist, and excluding potential assets. 
The concept of reserve assets is based on the concepts of “control” and “accessibility” With regard to monetary authorities,
based on the definition of foreign reserves above, the following can be installed:

1. It provides a cover for the local currency and an instrument to support the exchange rate.

2. It is the primary tool of the central bank to intervene and adjust imbalances of the balance of payments structure. 

3. It provides an important element in setting the country's creditworthiness, and enhances the country's credit rating in international transactions.

The optimal level of foreign reserves - i.e. the minimum value of foreign reserves that the monetary authority must possess and that is calculated according to internationally approved standards - represents the ability of the monetary authority to defend the local currency exchange rate. 
The most important of these standards (the money supply standard, which represents the adequacy of foreign reserves to cover the supply of the local currency, and the trade standard, which represents the number of months in which foreign reserves can finance the country's imports of goods and services) and adopt these standards assuming a shock that affects the accumulation of foreign reserves almost Exactly.

With regard to managing foreign reserves, there are internationally accepted rules that depend on managing foreign reserves in terms of their liquid assets (securities, deposits, gold ...) and it envisions geographical distribution, currency diversification and other factors that reduce exposure to risks and provide returns that ensure sustainability These reserves.

It should be noted here that for internal borrowing by the government, whether funded by the Central Bank of Iraq directly any direct deduction of securities issued by the Ministry of Finance - which is prohibited by the Law of the Central Bank of Iraq - or indirectly by deduction in favor of local commercial banks, for both A negative impact on foreign reserves if we assume that the government’s priority is to finance that part of the expenditure represented by workers ’compensation, as this part is reflected in consumer spending, which is mainly met by imported goods and services, which in turn will generate a derivative demand for foreign currency and hence the exit of a portion Of foreign reserves to finance these imports, and this effect will continue until the date of maturity of the securities.

While external borrowing will positively reflect on the accumulation of foreign reserves, as long as the Ministry of Finance will monetize it for the purpose of obtaining the local currency, and handing the foreign currency to the central bank to be added to the foreign reserves.






https://cbi.iq/news/view/1507
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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty Confusing monetary policy

Post by claud39 on Sun Jun 28, 2020 11:49 am

[size=36][rtl]Confusing monetary policy[/rtl][/size]


Saturday 27 June 2020





Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Alsabaah-38812





Yasser Al-Metwally 
 

The collapse of the exchange rate of the Lebanese pound has led to the country's introduction of countless problems, and the state has lost control due to the confusion of its strong monetary policy and what cannot be rebalanced.

I market this live experience that is before us now at a time when the country is pressuring to reduce the Iraqi dinar exchange rate against the dollar, which will contribute to an unprecedented inflation that loses the national currency its prestige, and here is an experience as I mentioned before and the economic logic confirms that the only great and only affected by the policy of reducing the exchange rate are a segment The poor and middle income make up the largest proportion of society.

Let us call the correct and sound monetary policy of the Central Bank in maintaining the stability of the exchange rate and the stability of the market as a result of its success, and let us go to other solutions to bridge the budget deficit.

As for talking about supporting the national product, we all call and hope for that.

The answer we have is we who are interested in economic affairs, and there are no accurate statistics and we know well that local production is limited to some industries, as well as some agricultural crops and animal products, is not it?

Now, in order to preserve this product, its durability, and to encourage it, we need its support. How?

Not by lowering the exchange rate but rather by protecting it from imported products by banning them or imposing a customs tariff that limits their import, so we can support the local product, and encourage it and the atmosphere is appropriate now after calls to boycott the importer from all countries ..

In front of us, important goods remained for construction and reconstruction whose production is not available at the present time and luxury goods, and here it is necessary to put in place a planned import program and before it reform the failed trade policy, imposing high fees on luxury goods or preventing their import for three years at the least, and thus we encourage and protect national production.

At that point, discreet customs tariffs will help absorb chunky liquidity from the luxury and able segment of those who resist the rise in the prices of luxury goods that are originally not accessible to the poor and without prejudice to the exchange rate and thus compensate for the budget deficit because the other segments do not need them and here it must be pointed out that the need to reform Financial management and addressing the gaps that allow corruption.

 I would like to start calling on those who have no knowledge or experience in monetary policy not to throw themselves in a way that confuses monetary policy, adding insult to injury, and I mean to confuse market confusion and price burns, and I believe with certainty that the new government team, which seems specialized for the first time, understands the importance of not interfering in an issue Monetary policy, except in coordinating matters and unifying the points of view between the fiscal and monetary policies, otherwise the fate of the country is the fate of our sister or brother, Lebanon.





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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 Empty Commission: The coin sale auction has become a habitat for attrition and a money laundering incubator and we make these proposals

Post by claud39 on Thu Jul 09, 2020 2:27 pm

[size=36]Commission: The coin sale auction has become a habitat for attrition and a money laundering incubator and we make these proposals[/size]






09/07/2020











Follow-up cell: The government may resort to borrowing and printing currency to provide salaries - Page 2 12972020_iraq-_para





Baghdad - Mawazine News

, The Economic and Investment Committee in the House of Representatives, Thursday, said that the auction of selling currency has become a home for attrition of hard currency and an incubator for money laundering, while he presented a number of proposals.


Committee member, MP Mazen Al-Faili said, "It is necessary to review the mechanisms and controls of the currency auction to save public funds from the acquisition of corrupt and steal public money, and the window of the auction of hard currency formed a home for the depletion of hard currency and an incubator for some money-laundering practices."


He added: "Observers and officials estimate that the value of what was sold of the dollar in this auction during the past fifteen years by more than three hundred billion dollars - according to the report of the Parliamentary Finance Committee for the third session - most of it came out of Iraq without achieving a noticeable benefit in developing the country's productive economy. ".


He continued: "With a quick calculation of the losses incurred by the reserve as a result of these practices, and speculators and illicit trade brokers benefit from them. 



If sales are at a rate of (180) million dollars per day and more than half of them are not used in actual import activity, then this means that ninety million dollars per day go to the benefit of the opportunists and in total Profits of nearly two billion dollars annually, which is a very large amount, especially if we know that it was wasted over many years. "

Al-Fili continued by saying: Therefore, reviewing the mechanisms and controls of the currency auction is a necessary reform requirement to save public funds from the acquisition of corrupt and stealing public money and we suggest a set of procedures:


- Forming a high-level professional committee empowered to investigate the currency auction activity for previous years and recovering all the money acquired Speculators and influential people in the political scene, which will not be less than (18) billion dollars, according to the estimates of the observers.


- Restricting the sale of hard currency with restrictions and conditions in a manner that guarantees the revitalization of the productive national economy and meets the needs of citizens necessary from it, and it is not correct that it is sold to everyone who requested it.


- Checking the documents that require conversion and verifying that banks are free of any problems related to their capital, and that this is done before any sale of hard currency.


- Control and control the currency market to prevent any discrepancy between the official price and the market price to prevent smuggling and money laundering, and that all the intermediate links causing the events of this discrepancy in the two prices are held accountable.


- Imposing customs duties and collecting them from importing merchants in a tribal way and when selling the dollar to prevent the manipulation that might occur in reducing these customs fees or taxes in the border outlets.


It is assumed that the central bank delivers the dollar if the trader presents his commercial lists along with the dollar request.


- Banks that participate in the currency auction must engage in productive economic activity by supporting private projects, and that their business is not to parasitize the profits from selling the currency only, otherwise it is prohibited from participating in the currency auction. 



Ended 29 / A 43







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