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Mnt Goat Wants Your Money...And News Brief 12/29/20
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Mnt Goat Wants Your Money...And News Brief 12/29/20
by RamblerNash Thu Dec 31, 2020 12:22 am
Hi Everyone,
I bring you much news today.
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As usual, remember that for over 7 years, I have taken my own time from my gasthaus business to research and document findings about the revaluation of the Iraqi dinar. Please be generous but only if you can afford it and remember to give. I suggest $5-$10 a month but you decide. Whatever you can afford will be helpful in this time of Covid where nearly 50% of our business is now gone due to travel restrictions.
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More news….
First, I want to wish everyone a very happy new year 2021.
May everyone be Healthy-Wealthy-and Wise!
We are quickly heading into the new year 2021 and still no reinstatement of the Iraqi dinar.
So, the questions on everyone’s minds are:
1) will we get the reinstatement in early 2021?
2) has the CBI truly been planning for this event or is the intel just a bunch of rubbish and more guru lies?
Well… to answer these questions I have reported on many news articles in the past months in my newsletters to substantiate that the CBI is, in fact, planning to reinstate the Iraqi dinar. The plan has not changed and this is a necessity. I will also add this is at the heart of the financial issues they are now facing in not doing it earlier. Get it? Remember 2012-2013? Did you forget so soon? This is a very important point for me to make today.
So, what comes first - the cart or the horse? In other words, is the financial and economic problems stemming from the corruption and is the corruption preventing them from completing these financial reforms? Thus, is putting measures in force to clean up the corruption working? We have seen that new anti-corruption “laws” only go so far and soon they find ways around them. Also, the GOI is not very good at law enforcement and so this is yet another systemic problem for the GOI.
I always like to go back to what we know as FACT then go from there. So, what do we know as FACT?
We know they had planned to complete the project to delete the zeros by mid-year 2020 and they told us this was their goal a year ago in news articles and from my CBI contact, but this did not happen.
So, it may not seem like it, but the CBI is on a timeline. This timeline keeps getting bumped or pushed out due to circumstances. I know this may seem like bullshit again if this gets delayed but I want everyone to hold on to your horses and relax if it does. I am not saying it will. But be mentally ready.
What are my feelings if this reinstate will happen in early January 2021?
If you look on the surface and didn’t know any better you would say Iraq is in chaos and the economy is about to crash. You might say there is no way they will raise the value of the dinar over the dollar. Trust me they are not doing all this chaos intentionally just to RV. How ridiculous and stupid is this?
But this is not the case. First, you must understand that the sole de facto peg of the Iraqi dinar to the US dollar is part of the problem too. The IMF and the World Bank wants desperately to re-peg the dinar to a basket of currencies and out it on a FLOAT to control it better and level off it’s rate. This way the global community determines the rate and not the average citizen in Iraq who is open to rumors and speculation. They want to open the dinar up to the world and let the investors determine the rate.
The problems they are facing in order to do this move are systemic from the corruption and the stealing of the oil revenues. This situation can be corrected and I am told the recent “devaluation” is an effort to correct it, at least the theft from the currency auctions.
The recent devaluation is hoped to accomplish the following: 1) limit the currency auction theft; 2)collect the other 30% of the three zero notes, 3) cause the citizens to buy US dollars by speculating that there will be further devaluation of the dinar soon. This is why they are spreading the 1660 rumor now as I write this newsletter.
Remember too the average citizen remembers the 90’s and what happened during the embargo when the dinar became almost worthless. The CBI is trying to strategically use “speculation” as a driving force to get the citizens to unload all their stashes of dinars and get them into the banks. By raising the value of the US dollar over the dinar pure sense tells the citizens to invest in the dollar over the dinar. This is simply micro economics. Later when the dinar is valued higher than the dollar they reverse process. So no one will get super rich off this process if it works.
Will they devalue the currency yet again to 1660, as the rumors now say and the BIS is suggesting? What would be the impact? I am told this will only happen as necessity prevails. In other words, they want to leave it just as a rumor but if the 1450 devaluation does not work they will go further. THEY MUST COLLECT THE 3 ZERO NOTES prior to the reinstatement!
I want everyone also to remember they have not forgotten about the 3 zero notes that we hold. They must also collect these notes too. This is part of the project to delete the zeros. We have the larger 3 zero notes and so they must collect them and delete them. We have been faithful investors in the Iraqi economy and have helped Iraq through their financial difficulties of the past. The US customs could have easily blocked the dinar from entering the country and limiting us from our purchases. So why did our government allow us to invest in so much dinar? Just asking….. There is a reason and there is a plan to use the dinar as I outlined in a prior newsletter. Did you read it? Did you forget so soon?
We too need to be paid off. We would have already ben paid off if it had not been for all the corruption causing the delays in this process.
I also want to bring to your attention that the Iraqi 2021 budget passingas this is very important to the process as is the US elections.
We sit, wait, PRAY and watch what happens next.
More news….
ADVISOR AL-KAZEMI ANNOUNCES A FINAL DECISION REGARDING THE DOLLAR EXCHANGE RATE
On Sunday, Mazhar Muhammad Saleh, the economic advisor to the Prime Minister, denied that the government intends to raise the exchange rate of the dollar again against the Iraqi dinar, while confirming that the IMF’s advice is not binding on Iraq. Saleh told Shafaaq News Agency, “The news about a new increase in the exchange rate of the dollar against the Iraqi dinar is incorrect, and the price is currently fixed and cannot be changed.”
And on the role of the International Monetary Fund in the Iraqi economic crisis, Saleh explained that “Iraq is a founding member of the International Monetary Fund since 1945, and when every country is exposed to a financial crisis, the Fund intervenes in consultation with it, with the aim of achieving financial stability for the country.” He added that “when the International Monetary Fund saw that Iraq was exposed to a financial and economic crisis, it entered into consultation and not for other matters,” stressing that “the advice of the International Fund is not binding, given that Iraq did not enter the financial borrowing program.”
Some media and social media circulated news of the government’s intention TO RAISE THE PRICE OF THE DOLLAR AGAINST THE DINAR AGAIN, after the Central Bank set the dollar exchange rate at 1450 dinars.
More news….
THE SHORT-TERM PLAN SHOULD BE FOLLOWED BY FURTHER REFORMS, including deeper structural reforms, to strengthen the resilience of the economy, expand the fiscal space to include critical reconstruction and social spending, and lay the foundation for higher, job-rich and more inclusive growth in the medium term,"
On Saturday (December 19, 2020), the government announced a 23 percent devaluation for the first time since 2003, in order to reduce the pressure on the budget as it tries to secure billions of dollars in foreign aid.
The central bank set a new exchange rate for the national currency, raising the dollar to 1,450 dinars from 1,190 dinars before the decision.
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Formal Articles are below. Due to FACEBOOK limitations they do not print my RED colored fonts or italics, so my comments are in brackets ( ) throughout the articles. I will preface my comments with “Mnt Goat” so you know I am jumping in with observations. Also, I separated the articles with asterisks.
Articles Begin
ECONOMIST CALLS FOR THE REMOVAL OF THE THREE ZEROS FROM THE DINAR TO STRENGTHEN THE LOCAL CURRENCY
Economist Raad Twigg called on the central bank to remove the three zeros from the dinar to strengthen the local currency.
"It is well known that the monetary mass in circulation is about 60 trillion dinars, which is what is available to the Central Bank of Iraq and to the banks and the public, which is a large monetary bloc compared to the economic transactions of the Iraqi economy, and THAT A LARGE PROPORTION OF THIS BLOC IS SUFFERING FROM HOARDING, AND THEREFORE THIS DOES NOT HELP THE CENTRAL BANK OF IRAQ TO DRAW AN EFFECTIVE MONETARY POLICY, calling on the central bank to delete three zeros or gradually delete the zeros to make the value of the dinar appear to be higher value and that the calendar and monetary balance will form rapidly in the market economy," twig said.
He added: The monetary bloc can become about 15 to 25 trillion dinars and the value of the new dinar will converge to the value of the dollar, which facilitates the process of accounting and allows small and new monetary groups to appear in the monetary market.
(Mnt Goat – So we have been waiting for articles like this. Notice we have not see any “direct” article talking about this subject of “deleting the zeros” for a long time. Now they finally are telling us this may be a solution to getting out of the mess they are in. Is it? What do you think?)
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DEPUTY TALKS ABOUT A NEXT STEP TO CHANGE THE CURRENT EXCHANGE RATE FOR THE DOLLAR
MP Hussein Arab spoke about the possibility of changing the current dollar exchange rate, while noting that the decision to change it is in the hands of the Ministry of Finance.
(Mnt Goat- this is not true- since we know the CBI determines monetary policy not the GOI)
Arab said in a televised interview, followed by (Baghdad Today), "We have not discussed the government yet in the parliament about the basis on which the new exchange rate was built," adding that "raising the exchange rate to 1450 dinars against the dollar is surprising because oil prices are rising and it is possible that it reduces the size of the financial fortune, and therefore it is not necessary to go towards changing the exchange rate on the pretext of reducing the deficit.
Regarding the current trend in covering government expenditures, the MP said that "raising the exchange rate solves a small part of the deficit problem, and there are alternatives and other better solutions, noting, WE BELIEVE THAT THE EXCHANGE RATE WILL CHANGE ONCE THE 2021 BUDGET IS DISCUSSED IN PARLIAMENT.
I tell the Minister of Finance that raising the exchange rate of the dollar is illogical, and it will cause the market to collapse and what.
Arab confirmed that "the Ministry of Finance determines the exchange rate, and the Central Bank has nothing to do with that, noting that all parliamentarians agree not to allow the salaries of employees to be affected
before that, the deputy of the Saeron Alliance, ALI SAADOUN, CONFIRMED THAT PARLIAMENT WILL HOST THE MINISTER OF FINANCE, ALI ALLAWI, IN ITS FIRST SESSION NEXT YEAR, TO DISCUSS THE REASONS FOR RAISING THE DOLLAR EXCHANGE RATE AGAINST THE IRAQI DINAR.
Saadoun said in an interview singled out (Baghdad Today), "The House of Representatives will host the Minister of Finance in the first session of the Council at the beginning of next year, to discuss the reasons for raising the exchange rate of the dollar against the Iraqi dinar, and its negative effects on many groups of the Iraqi people." It will examine the exchange sections mentioned in the 2021 budget bill.
He added that "many members of Parliament are not convinced of the move to raise the exchange rate, because this matter must be ".accompanied by activating the local industry and reducing imported goods The Finance Minister Ali Allawi, said Monday 12/21/2020, the change of the dinar exchange rate against the dollar came in order to protect the economy.
He added that the budget is the first step in the path of economic reform and the difference in revenue by changing the exchange rate will be allocated to support vulnerable groups of society. In turn, Minister of Planning Khalid Al Battal stressed that "investment spending will be up to 8 trillion dinars in the budget of 2021.
He added, "The budget included the suspension train project, the port of Faw, and a number of projects
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THE DOLLAR FACES AN UNCLEAR SCENE ... AND THE GOVERNMENT MAY LOSE CONTROL OF "PRICING"
Confusion prevailed over the government and popular circles in Iraq due to the "incomprehensible" dollar prices that the markets have witnessed for two days, as the exchange rates are still fluctuating below the official rate announced by the Central Bank last Sunday.
Specialists and those interested in financial affairs explained this disparity in prices, due to the existence of a large offer for sale in exchange for the decline in demand for buying the dollar.
The exchange rates of the dollar in the markets, which ranged from 1380 to 1420 dinars to the dollar, caused widespread ridicule on social networking sites, as the state sells dollars at a price more expensive than the black market after setting it at 1460 dinars to one dollar.
(Mnt Goat – this article goes back to what I keep saying that the IMF and World Bank want to un-peg the dinar from the de facto peg and get it re-pegged to a “basket” of currencies and let it FLOAT. Do you see now the difficulties they are having leaving it on this single peg to the US dollar? Yes, can you see it now? It is causing much of their financial issues.)
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CABINET SENDS 2021 BUDGET TO PARLIAMENT: EMPLOYEES' SALARIES HAVE NOT BEEN TOUCHED MUCH.
Experts concerned with financial affairs explained this disparity in prices, with a large offer for sale in exchange for the decline in demand for the purchase of the dollar, expecting it to end soon, but the prices were still for the third day in a row did not exceed 1420 dinars per dollar, at a time when experts seemed unsure of whether the new problem would have already been fixed in the Iraqi market.
The price will not be stable
The economic and financial expert Basem Jamil Antoine revealed an "abnormal" situation that the markets will witness, represented by a variation in exchange rates of up to 20 tones.
Antoine said in an interview with the official agency, followed by "Ultra Iraq", that "the climate of the financial crisis is ready for rumors and speculation by some, while this process coincided with the government's directions to control the crisis and get out of filling the deficit in paying salaries."
He added that "there are those who claim from currency dealers that trillions of dinars are outside the banking framework, and this means that three quarters of the Iraqi currency publication falls outside the banking system," noting that "through this process, there will be a disparity in the exchange rates of the dollar even in the provincial markets." , And he will see you many weights, "adding that" if the disparity was in a single figure, this is very normal, but to be twenty tears, this is not normal. "
Antoine considered that "the currency is a means, not an end, and its strength is from the strength of the economy, but the Iraqi economy has weakened.
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WILL REDUCING THE "DINAR" SAVE THE IRAQI ECONOMY FROM SINKING?
The devaluation of the Iraqi currency will add inflation to the list of difficulties faced by the population recovering from a devastating war with ISIS.
Without major spending cuts, this will not be sufficient to prevent further economic pain, according to a Bloomberg report.
On Saturday, the government announced that it would devalue the currency for the first time since the US-led invasion in 2003, and devalued 23% of the dinar's value to reduce pressure on public finances as it tries to secure billions of dollars in foreign aid.
But the move, part of a broader plan to overhaul Iraq's oil-dependent economy and cut bloated public salaries, has already met opposition among parliamentarians who fear angering voters after mass protests that rocked the country last year.
It wouldn't be the last cut. So far, the devaluation has not caused a repeat of those deadly unrest in the second-largest producer in the Organization of the Petroleum Exporting Countries (OPEC), and the government said the devaluation would be a one-off.
Ziad Daoud, an emerging market economist, said devaluation is painful for ordinary citizens, But it is unlikely to be a one-off. The decrease in foreign exchange reserves envisaged by the budget is likely to lead to further adjustment in the currency - either formally or, more likely, on the black market.
11% contraction in the Iraqi economy
Although Iraq is the world's third largest oil exporter, its economy has suffered as the coronavirus pandemic depletes global demand for energy supplies. The quotas agreed with other oil exporters to stabilize the market also mean that the number of barrels that Iraq can pump is restricted, which narrows its options for increasing revenues.
According to the latest estimates of the International Monetary Fund, the Iraqi economy has shrunk by 11% this year.
This is better than the Fund's initial forecast of a 12.1% drop, but still leaves Iraq with the largest contraction among OPEC members subject to production caps, highlighting its over-reliance on hydrocarbons.
The International Monetary Fund expects that the net foreign assets of Iraq will continue to decline sharply until 2024. The debt-to-GDP ratio is among the highest in OPEC +, a group that includes non-OPEC oil exporters such as Russia.
$ 45 billion expected budget deficit
Oil exports in the 2021 budget are estimated at an average of 3.25 million barrels per day, with an assumed average price of $ 42. That would leave a budget deficit of about 58 trillion dinars ($ 45 billion).
According to the budget plan, which was approved by the cabinet on Sunday but not yet approved by Parliament, the amount of support from the International Monetary Fund is about six trillion dinars, which is a fraction of the gap.
Several analysts said the devaluation was necessary to show international lenders that Iraq is serious about reform, but not sufficient to trigger the aid the government wants.
More budget cuts
"Budget cuts will be needed to get substantial financial support," said Mark Bullund, senior credit research analyst at Red Intelligence.
Since the announcement of the devaluation, the gap between the official exchange rate and the currency rate on the black market has narrowed, indicating that the adjustment helped relieve pressure for now.
But the government formed after protests last year that toppled former Prime Minister Adel Abdul Mahdi remains fragile. Now it is battling opposition to plans to roll back the public sector in a country where politicians have bought their loyalty for decades by creating government jobs.
"They will have some problems with passing budget reforms through parliament," said Ahmed Al-Tabakshli, chief investment officer for Iraq at Asia Frontier Capital and assistant professor at the American University in Iraq - Sulaymaniyah. “But they will have to deal with it.
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A REQUEST TO RAISE THE EXCHANGE RATE TO 1600 DINARS AGAINST THE DOLLAR ... AND TWO ALTERNATIVE OFFICIAL PROPOSALS
Two measures that could have saved more money than the difference in the exchange rate of the dinar against the dinar were revealed .by an economist who pointed out that the Ministry of Finance requested that it be set at 1600 dinars to the dollar Economic expert Nabil Al-Marsoumi said - a televised statement that "the difference currently visible between the central bank and the market rate will continue until the budget is passed due to the state of uncertainty and uncertainty because everyone is waiting for the position of the Iraqi parliament on the 2021 budget, and what happens in terms of the difference between the official exchange rate and the exchange rate is caused by speculation and reaping." Through it the banking offices are huge sums and may be less severe soon.
He added that SOME BELIEVE THAT THE DECISION TO RAISE THE EXCHANGE RATE OF THE DOLLAR IS TECHNICAL AND WAS DONE THROUGH THE CENTRAL BANK, ALTHOUGH IT IS POLITICAL AND WAS MADE BY A GOVERNMENT DECISION FROM THE MINISTRY OF FINANCE. Parliamentary statements throw more uncertainty and lead to repercussions in the market He talked about government financial decisions in a deeper way, saying that "THE TIMING OF THE RECENT GOVERNMENT MEASURES IS VERY WRONG.
There is NO OTHER COUNTRY IN LIGHT OF THE CORONA CRISIS AND THE GLOBAL RECESSION THAT HAS DEVALUED ITS CURRENCY AND DEDUCTED FROM THE SALARIES OF ITS EMPLOYEES. ALL COUNTRIES HAVE A LAYER OF QUANTITATIVE MANAGEMENT PACKAGES AND INJECTED MONEY AND AID TO THE PUBLIC AND PRIVATE SECTORS
Cougar said in an interview singled out (Baghdad Today), Parliamentary Finance will study the draft of the country's general federal budget for the year 2021 accurately and amend the loopholes if they are contained in the draft law He added that "Parliament has the power to cancel or amend the article on the deduction of part of the employee allocations or with regard to tax deductions.
And that "the high rates of deductions, we will work to reduce them, provided they do not affect the employee significantly Last Tuesday, the reporter of the Parliamentary Finance Committee, Ahmed Al-Saffar, spoke about the most prominent remarks on the 2021 budget bill, and while noting that the budget is inconsistent with the country's economic reality, he suggested returning the bill to the government Al-Saffar said, in a televised interview, followed by (Baghdad Today): "Until now, the 2021 draft budget has not been sent to Parliament, which will need 4-5 days to study the project legally, after which the project will be transferred to the Finance Committee and we may use our powers to reduce spending.
Al-Saffar added, "This budget is inconsistent with the financial and economic situation in which the country is running, because it has high spending of 150 trillion dinars, according to the leaked version, which is very exaggerated," noting that "most of the paragraphs of ".the leaked draft are confirmed today that they are the same final draft
He continued, "The price of a barrel of oil on which the budget was built is illogical because it was $ 42 while the current price of a barrel was $ 52.
Covering the entire market the reporter of the Finance Committee in Parliament confirmed that “the 2021 draft budget, and in case it does not comply with the government program and the economic reality, will be returned to the government,” indicating that “we need 30-45 days to study and ."approve the project if there are no internal and external political interference, and it may disrupt it.
More He suggested that "Parliament will not accept the passage of more loans in the 2021 budget," reiterating his call for the need to reduce public spending and raise the price of a barrel of oil in the budget, because every dollar can add one trillion dinars annually.
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LEGAL PROCEDURES AGAINST 13 PRIVATE BANKS FOR VIOLATIONS OF ENTERING THE CURRENCY AUCTION
The Rusafa investigation court, which is competent to look into issues of integrity, money laundering and economic crime, decided, Thursday, to take legal measures against 13 private banks for violations of entering the currency auction.
A statement by the Supreme Judicial Council stated, "The Rusafa Investigation Court, which is competent to look into issues of integrity, money laundering and economic crime, has decided to take legal measures against 13 banks for violations of entering the currency auction without submitting customs permits that support entry of goods, tax accounting, and suspicions of falsifying documents related to this."
The statement added, "The aforementioned court decided to bring in the authorized directors of the violating banks due to their breach of the due diligence procedures imposed by the Anti-Money Laundering and Terrorist Financing Law No. (39) of 2015.
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REFORMS AND CURRENCY DEVALUATION ARE KEY TO ENSURING IRAQ’S ECONOMIC STABILITY, IMF SAYS
The country needs deeper structural reforms to strengthen economic resilience and lay the ground for more inclusive growth
STREET VENDORS WAIT FOR CUSTOMERS IN THE MAIN SHURJA MARKET IN BAGHDAD, IRAQ. THE COUNTRY DEVALUED ITS CURRENCY BY ABOUT 23 PER CENT AGAINST THE US DOLLAR ON DECEMBER 20, THE FIRST TIME THE PEG WAS ADJUSTED SINCE 2015.
Deepthi Nair
December 25, 2020
Fiscal reforms in Iraq combined with the recent devaluation of the exchange rate are “critically important steps to help reduce large external and fiscal imbalances and ensure the country’s economic stability”, according to a new report by the International Monetary Fund.
“The Covid-19 pandemic and the sharp decline in oil prices and output have aggravated Iraq’s economic vulnerabilities,” Tokhir Mirzoev, IMF mission chief for Iraq, said. “Severe fiscal financing constraints and challenges with meeting external and domestic payment obligations, including wages and pensions, necessitate a decisive recalibration of economic policies to maintain economic stability.”
The Washington-based lender welcomed the Iraq government’s plans to significantly increase targeted cash transfers to the poor as well as to enhance health-related spending to mitigate the impact of the Covid-19 crisis on the most vulnerable.
The Covid-19 pandemic and the sharp decline in oil prices and output have aggravated Iraq’s economic vulnerabilities Tokhir Mirzoev, IMF mission chief for Iraq faced with the twin shocks of dwindling oil revenue and the coronavirus-induced economic slowdown, Iraq devalued its currency by about 23 per cent against the US dollar on December 20, the first time the peg was adjusted since 2015.
The Central Bank of Iraq set the exchange rate at 1,450 dinars per dollar, from a peg of 1,182 dinars, for sales to the finance ministry. The dinar will be sold to the public at 1,470 and to other banks at 1,460.
“The structural distortions in the Iraqi economy are the ones that impoverished the public finances and restricted the ability of reform sought by the government and the Ministry of Finance,” the Central Bank of Iraq said. “Fiscal policy lagged behind in performing its roles, and monetary policy was preoccupied with repairing the outputs of confused fiscal policy.”
Welcoming the draft 2021 budget, the IMF said continued reforms, including in structural areas, will be instrumental in cementing short-term gains and laying the ground for higher, job-rich and more inclusive growth.
Iraq's central bank devalues currency by about 23% as anger mounts
Iraq's economy on the brink as Covid-19 and dwindling oil revenue bite
Iraq’s oil exports and revenues increase in October,“While providing relief from immediate financial tensions, the authorities’ short-term plan will need to be followed up with further reforms, including deeper structural reforms, to strengthen economic resilience, create further fiscal space for critical reconstruction and social spending, and lay the ground for higher, job-rich and more inclusive medium-term growth,” Mr Mirzoev added.
Last month, the World Bank said millions of Iraqis could be forced into poverty due to the twin shocks of the pandemic and the collapse of oil prices. Even in its “benign scenario”, about 5.5 million Iraqis could be pushed into poverty, the Washington-based lender said.
Opec’s second-largest producer depends on oil revenue to meet 90 per cent of government expenditure, including $5 billion spent on salaries for public servants each month.
A white paper on economic reform submitted to parliament by Mustafa Al Kadhimi's government proposes slashing the bill for government salaries to 12.5 per cent of gross domestic product within three years, from the current 25 per cent. The paper also calls for a reduction in benefits and allowances as well as reforms to the pension system.
Recommendations include phasing out subsidies to critical sectors in Iraq's economy, notably power.
Iraq’s economy was forecast to shrink by 12.1 per cent this year before the devaluation, the third-steepest contraction in the Arab world after Lebanon and Libya, according to the IMF.
Fitch Ratings said last month that a 20 per cent devaluation would increase next year’s budgeted oil revenue in dinar terms by about 6 per cent of gross domestic product.
A weaker dinar also means inflation in the country will rise as the cost of imports increases.
Iraq’s central bank said the depreciation would not be repeated as it would use foreign reserves to defend and stabilize the currency.
THE EXCHANGE RATE HAD BECOME “A MAJOR OBSTACLE” TO THE GROWTH AND DEVELOPMENT OF THE ECONOMY, the central bank said, prompting it to respond to the requirements of financing the budget at a rate that provides sufficient cover to the government’s needs.
(Mnt Goat – everyone should read this article VERY closely to help you understand this systemic problem of staying on the de facto peg to the US dollar. They must get off it.)
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PARLIAMENTARY FINANCE: RAISING THE PRICE OF THE DOLLAR WAS DIRECTED BY THE INTERNATIONAL MONETARY FUND AND THE WORLD BANK AND WITH THE KNOWLEDGE OF POLITICAL BLOCS, NOT THE GOVERNMENT.
December 24, 2020 Walter
Baghdad / Obelisk: Member of the Parliamentary Finance Committee, Magda Al-Tamimi, revealed, Thursday, December 24, 2020, that the IMF and the World Bank faced Iraq BY INCREASING THE PRICE OF THE DOLLAR AND REDUCING THE CURRENCY, AND IT WAS NOT A SPECIAL DECISION BY THE GOVERNMENT, NOTING THAT THIS MATTER IS WITH THE KNOWLEDGE OF POLITICAL BLOCS.
Al-Tamimi said in a statement followed by the obelisk, that a previous meeting was held between her and the Chairman of the Committee Haitham al-Jubouri and the Vice-Chairman of the Committee Muthanna al-Samarrai on the one hand and the World Bank on the other hand, and they indicated that the process of reducing the dinar against the dollar is the last financial reform solution that Iraq will take, and THAT IT MUST PROCEED WITH FINANCIAL REFORMS ACCORDING TO PERIODS THEY REACH LONG-TERM SOLUTIONS and not temporary solutions within an annual budget Tamimi said that their opinion changed and it was agreed with Iraq to reduce the dinar against the dollar, and this matter was reported.
(Mnt Goat – the devaluation is a temporary solution, if you can even call it that. It will blow up in their faces, if they don’t now do the project to delete the zeros and reinstate. There is no turning back…. )
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AL-SUMAIDA’I: THE CURRENCY AUCTION IS A SMUGGLING OF THE DOLLAR AND ITS CORRUPTION GOES BEYOND SIMPLE SALES
Baghdad: Al Furat News – An independent politician, Ibrahim Al-Sumaidaie, described the auction of selling the currency as “smuggling.”
Al-Sumaida’i said {to the Euphrates News} that “the currency auction is a smuggling of currency and is based on covering the sale of the dinar for the purpose of import and credit.”
He pointed out that “the latest statistics of the Central Statistics Agency revealed differences in the currency auction that exceeded the $ 26 billion without basis, even in the amount of $ 19 million for the purpose of import. Most of its invoices are forged and the Central Bank evades responsibility.”
Al-Sumaidaie added, “The only solution to stop the bleeding of currency selling is to inject the dollar in real terms and go to savings accounts,” noting that “the problem of this auction has been in place since 2010.”
The independent politician concluded, “The Central Bank of Iraq deluded the people that there is no alternative to the currency auction, and he admitted that there were 45 trillion dinars outside the monetary policy of Iraq, and the corruption of the auction went beyond simple direct sales to specialization.”
The deputy of the parliamentary wisdom bloc affiliated with the coalition of Iraqis, Khaled Al-Jushami, revealed that Iraq had lost 240 million dinars per month in the currency auction.
Al-Ghashami said in a press statement, that the Central Bank of Iraq sells 4 billion dollars a month, even if we divide it by 200 in 5 working days, it equals one billion dollars in four weeks, and if we multiply the 4 billion dollars by 6, the result is 240 billion dinars per month for the Iraqi state from the auction selling the currency.
He added that the profit goes to people in private banks, not to government banks, in order to return to the state treasury.
It is noteworthy that a member of the Parliamentary Finance Committee, Faleh Al-Sari, collected signatures to submit a request to question the Governor of the Central Bank of Iraq regarding suspicions in the currency auction.
In the year 2019, the Central Bank sold $ 44 billion of hard currency in the currency auction, mostly intended to cover the import of materials and goods that the country needs, stabilize the price of the Iraqi dinar and prevent inflation, according to bank data.
However, as economists say, THE VOLUME OF IRAQI IMPORTS REACHED 18 BILLION DOLLARS, AND THEY WARN OF “CURRENCY LEAKAGE” OUTSIDE IRAQ DUE TO “CORRUPTION” IN THE CURRENCY AUCTION IN THE COUNTRY.
In light of this, the Supreme Judicial Council announced that it would initiate the investigation of the documents of the joint banks in the foreign currency sale window.
A statement to inform the judiciary stated that the investigation court competent to combat money laundering and economic crime crimes responds to the request of the Central Bank and conducts the investigation with documents and documents submitted by the participating banks in the foreign currency sale and purchase window to verify its validity and compliance with the law.
(Mnt Goat – the currency auction corruption is all about going after the US dollar. If they started these currency auctions to prevent exactly what is happening by keeping them going, then it is time to end them. But what will Iraq use then to buy imports? Is the dinar strong enough? Will the neighboring countries want it? Surely be the devaluation down to 1450 is not helping the situation and will only cause more inflation, something they were always trying to prevent. So THINK, THINK and THINK some more – why would they suddenly do this devaluation then? There must be another purpose to it and we know what it is. But it has to be short term or else… )
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IT WILL CREATE THOUSANDS OF JOBS AS IRAQ ASPIRES TO BE THE “MAIN STOP” ON THE SILK ROAD
Transport Minister Nasser Hussein Al-Shibli confirmed, Saturday, THAT IRAQ WILL BE THE “MAIN STATION” IN THE INTERNATIONAL LAND AND MARITIME ROAD PROJECT, THE “SILK ROAD” LINKING THE TWO CONTINENTS OF ASIA AND EUROPE. The company implemented.
The official Al-Sabah newspaper quoted Al-Shibli as saying, “If a port is completed The FAO, Will be Iraq Center (Silk Road) You are working on China To connect Europe with Asia, “noting that” the completion of the project will follow the implementation of the dry canal to connect a port The FAO BTurkey, And thus completing the connecting line of China to me Pakistan And port The FAO By sea, and by rail to Europe. ”
Al-Shibli added that “the implementation of (Silk Road) Through Iraq It will provide thousands of jobs and a great economic return to the country, equivalent to oil financial revenues, and is linked to the completion of a port The FAOAl-Kabeer. ”
He continued that his ministry would complete the first phase of the port the FAO Early next year, explaining that “the sum of the allocated contract is two billion and 650 thousand dollars, and the ministry continues to negotiate with the Korean company to agree on this price and reduce the value of the contract,” pointing out that “Port The FAO It includes five large projects and a completion period of three and a half year.
Mentioned that China In 2013, it announced its initiative to create (Silk Road The new), which is a network of ports and railways that will connect nearly 65 countries around the world.
(Mnt Goat – the “silk road” is not going to happen with a currency that is almost worthless.)
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THE DEVALUATION OF THE DINAR IS THE BEGINNING .. "PAINFUL" STEPS AND A DIFFICULT YEAR FOR THE IRAQIS
report published by "Bloomberg" agency, Thursday, (December 24, 2020) warned that the devaluation of the Iraqi currency may not save the country and extricate it from its current crisis unless it is accompanied by more painful measures that include a significant reduction in government spending .
"Failure to make spending cuts will lead to severe economic consequences, in a country whose citizens are already suffering from many difficulties," the report said.
So far, the devaluation has not caused massive popular protests like the one that took place in October 2019, but economists expect this to be only the beginning of more painful measures .
The report quotes the economist Ziad Daoud as saying that "the devaluation will be painful for ordinary people, but it is unlikely that it will be a one-time". It is expected that the decrease in foreign exchange reserves expected in the next budget will lead to more adjustment in the currency, either officially. Or more likely on the black market. "
Last Saturday, the Iraqi government announced a devaluation of 23 percent for the first time since 2003, in order to reduce pressure on the budget in light of its attempts to secure billions of dollars in foreign aid .
And Bloomberg notes that "the draft state budget for 2021, which was approved by the government last Sunday and sent to Parliament, expects another difficult year for Iraq . "
Oil exports were estimated in the next budget at an average of 3.25 million barrels per day, at an assumed average price of 42 dollars, with a deficit of about 45 billion dollars .
Many analysts said that "the devaluation was necessary to show Iraq to international lenders that it is serious about reforms," but pointed out that "this is not sufficient for the country to obtain the financial assistance that the Iraqi government hopes to obtain . "
Mark Pohlund, senior credit research analyst at the "REDD Intelligence" platform , said, "Iraq needs to cut its budget further in order to obtain substantial financial support."
And the central bank set, at the end of last week, a new exchange rate for the national currency, to raise the dollar to 1450 dinars compared to 1190 dinars before the decision, which is the first in half a decade .
The decision sparked panic among Iraqis, many of whom rushed to exchange offices to buy dollars, and to supermarkets to store supplies .
Finance Minister Ali Allawi said that these measures are the only ones capable of preventing a complete collapse .
He told reporters Sunday, "IF WE DO NOT CHANGE THE EXCHANGE RATE OR ADJUST OUR SPENDING, OUR RESERVES (OF FOREIGN CURRENCY) WILL BE DEPLETED WITHIN SIX OR SEVEN MONTHS."
In particular, the draft 2021 budget includes the introduction of an income tax. And according to the budget proposal, Iraq is also seeking to increase its non-oil revenues in the face of declining crude revenues .
Iraqi officials who worked on preparing the bill say that their goal is to "withstand an unprecedented financial crisis resulting from the emerging Corona virus pandemic and the collapse of oil prices, which Iraq relies on sales to finance 90 percent of its budget . "
Baghdad is expected to end this turbulent year, with GDP growth shrinking by 11 percent and the poverty rate rising to 40 percent of the country's 40 million people.
(Mnt Goat – Yes, the devaluation is a necessary “painful step” . Like I said it is a step in the process and is being used as a means to an end. )
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I bring you much news today.
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More news….
First, I want to wish everyone a very happy new year 2021.
May everyone be Healthy-Wealthy-and Wise!
We are quickly heading into the new year 2021 and still no reinstatement of the Iraqi dinar.
So, the questions on everyone’s minds are:
1) will we get the reinstatement in early 2021?
2) has the CBI truly been planning for this event or is the intel just a bunch of rubbish and more guru lies?
Well… to answer these questions I have reported on many news articles in the past months in my newsletters to substantiate that the CBI is, in fact, planning to reinstate the Iraqi dinar. The plan has not changed and this is a necessity. I will also add this is at the heart of the financial issues they are now facing in not doing it earlier. Get it? Remember 2012-2013? Did you forget so soon? This is a very important point for me to make today.
So, what comes first - the cart or the horse? In other words, is the financial and economic problems stemming from the corruption and is the corruption preventing them from completing these financial reforms? Thus, is putting measures in force to clean up the corruption working? We have seen that new anti-corruption “laws” only go so far and soon they find ways around them. Also, the GOI is not very good at law enforcement and so this is yet another systemic problem for the GOI.
I always like to go back to what we know as FACT then go from there. So, what do we know as FACT?
We know they had planned to complete the project to delete the zeros by mid-year 2020 and they told us this was their goal a year ago in news articles and from my CBI contact, but this did not happen.
So, it may not seem like it, but the CBI is on a timeline. This timeline keeps getting bumped or pushed out due to circumstances. I know this may seem like bullshit again if this gets delayed but I want everyone to hold on to your horses and relax if it does. I am not saying it will. But be mentally ready.
What are my feelings if this reinstate will happen in early January 2021?
If you look on the surface and didn’t know any better you would say Iraq is in chaos and the economy is about to crash. You might say there is no way they will raise the value of the dinar over the dollar. Trust me they are not doing all this chaos intentionally just to RV. How ridiculous and stupid is this?
But this is not the case. First, you must understand that the sole de facto peg of the Iraqi dinar to the US dollar is part of the problem too. The IMF and the World Bank wants desperately to re-peg the dinar to a basket of currencies and out it on a FLOAT to control it better and level off it’s rate. This way the global community determines the rate and not the average citizen in Iraq who is open to rumors and speculation. They want to open the dinar up to the world and let the investors determine the rate.
The problems they are facing in order to do this move are systemic from the corruption and the stealing of the oil revenues. This situation can be corrected and I am told the recent “devaluation” is an effort to correct it, at least the theft from the currency auctions.
The recent devaluation is hoped to accomplish the following: 1) limit the currency auction theft; 2)collect the other 30% of the three zero notes, 3) cause the citizens to buy US dollars by speculating that there will be further devaluation of the dinar soon. This is why they are spreading the 1660 rumor now as I write this newsletter.
Remember too the average citizen remembers the 90’s and what happened during the embargo when the dinar became almost worthless. The CBI is trying to strategically use “speculation” as a driving force to get the citizens to unload all their stashes of dinars and get them into the banks. By raising the value of the US dollar over the dinar pure sense tells the citizens to invest in the dollar over the dinar. This is simply micro economics. Later when the dinar is valued higher than the dollar they reverse process. So no one will get super rich off this process if it works.
Will they devalue the currency yet again to 1660, as the rumors now say and the BIS is suggesting? What would be the impact? I am told this will only happen as necessity prevails. In other words, they want to leave it just as a rumor but if the 1450 devaluation does not work they will go further. THEY MUST COLLECT THE 3 ZERO NOTES prior to the reinstatement!
I want everyone also to remember they have not forgotten about the 3 zero notes that we hold. They must also collect these notes too. This is part of the project to delete the zeros. We have the larger 3 zero notes and so they must collect them and delete them. We have been faithful investors in the Iraqi economy and have helped Iraq through their financial difficulties of the past. The US customs could have easily blocked the dinar from entering the country and limiting us from our purchases. So why did our government allow us to invest in so much dinar? Just asking….. There is a reason and there is a plan to use the dinar as I outlined in a prior newsletter. Did you read it? Did you forget so soon?
We too need to be paid off. We would have already ben paid off if it had not been for all the corruption causing the delays in this process.
I also want to bring to your attention that the Iraqi 2021 budget passingas this is very important to the process as is the US elections.
We sit, wait, PRAY and watch what happens next.
More news….
ADVISOR AL-KAZEMI ANNOUNCES A FINAL DECISION REGARDING THE DOLLAR EXCHANGE RATE
On Sunday, Mazhar Muhammad Saleh, the economic advisor to the Prime Minister, denied that the government intends to raise the exchange rate of the dollar again against the Iraqi dinar, while confirming that the IMF’s advice is not binding on Iraq. Saleh told Shafaaq News Agency, “The news about a new increase in the exchange rate of the dollar against the Iraqi dinar is incorrect, and the price is currently fixed and cannot be changed.”
And on the role of the International Monetary Fund in the Iraqi economic crisis, Saleh explained that “Iraq is a founding member of the International Monetary Fund since 1945, and when every country is exposed to a financial crisis, the Fund intervenes in consultation with it, with the aim of achieving financial stability for the country.” He added that “when the International Monetary Fund saw that Iraq was exposed to a financial and economic crisis, it entered into consultation and not for other matters,” stressing that “the advice of the International Fund is not binding, given that Iraq did not enter the financial borrowing program.”
Some media and social media circulated news of the government’s intention TO RAISE THE PRICE OF THE DOLLAR AGAINST THE DINAR AGAIN, after the Central Bank set the dollar exchange rate at 1450 dinars.
More news….
THE SHORT-TERM PLAN SHOULD BE FOLLOWED BY FURTHER REFORMS, including deeper structural reforms, to strengthen the resilience of the economy, expand the fiscal space to include critical reconstruction and social spending, and lay the foundation for higher, job-rich and more inclusive growth in the medium term,"
On Saturday (December 19, 2020), the government announced a 23 percent devaluation for the first time since 2003, in order to reduce the pressure on the budget as it tries to secure billions of dollars in foreign aid.
The central bank set a new exchange rate for the national currency, raising the dollar to 1,450 dinars from 1,190 dinars before the decision.
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Formal Articles are below. Due to FACEBOOK limitations they do not print my RED colored fonts or italics, so my comments are in brackets ( ) throughout the articles. I will preface my comments with “Mnt Goat” so you know I am jumping in with observations. Also, I separated the articles with asterisks.
Articles Begin
ECONOMIST CALLS FOR THE REMOVAL OF THE THREE ZEROS FROM THE DINAR TO STRENGTHEN THE LOCAL CURRENCY
Economist Raad Twigg called on the central bank to remove the three zeros from the dinar to strengthen the local currency.
"It is well known that the monetary mass in circulation is about 60 trillion dinars, which is what is available to the Central Bank of Iraq and to the banks and the public, which is a large monetary bloc compared to the economic transactions of the Iraqi economy, and THAT A LARGE PROPORTION OF THIS BLOC IS SUFFERING FROM HOARDING, AND THEREFORE THIS DOES NOT HELP THE CENTRAL BANK OF IRAQ TO DRAW AN EFFECTIVE MONETARY POLICY, calling on the central bank to delete three zeros or gradually delete the zeros to make the value of the dinar appear to be higher value and that the calendar and monetary balance will form rapidly in the market economy," twig said.
He added: The monetary bloc can become about 15 to 25 trillion dinars and the value of the new dinar will converge to the value of the dollar, which facilitates the process of accounting and allows small and new monetary groups to appear in the monetary market.
(Mnt Goat – So we have been waiting for articles like this. Notice we have not see any “direct” article talking about this subject of “deleting the zeros” for a long time. Now they finally are telling us this may be a solution to getting out of the mess they are in. Is it? What do you think?)
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DEPUTY TALKS ABOUT A NEXT STEP TO CHANGE THE CURRENT EXCHANGE RATE FOR THE DOLLAR
MP Hussein Arab spoke about the possibility of changing the current dollar exchange rate, while noting that the decision to change it is in the hands of the Ministry of Finance.
(Mnt Goat- this is not true- since we know the CBI determines monetary policy not the GOI)
Arab said in a televised interview, followed by (Baghdad Today), "We have not discussed the government yet in the parliament about the basis on which the new exchange rate was built," adding that "raising the exchange rate to 1450 dinars against the dollar is surprising because oil prices are rising and it is possible that it reduces the size of the financial fortune, and therefore it is not necessary to go towards changing the exchange rate on the pretext of reducing the deficit.
Regarding the current trend in covering government expenditures, the MP said that "raising the exchange rate solves a small part of the deficit problem, and there are alternatives and other better solutions, noting, WE BELIEVE THAT THE EXCHANGE RATE WILL CHANGE ONCE THE 2021 BUDGET IS DISCUSSED IN PARLIAMENT.
I tell the Minister of Finance that raising the exchange rate of the dollar is illogical, and it will cause the market to collapse and what.
Arab confirmed that "the Ministry of Finance determines the exchange rate, and the Central Bank has nothing to do with that, noting that all parliamentarians agree not to allow the salaries of employees to be affected
before that, the deputy of the Saeron Alliance, ALI SAADOUN, CONFIRMED THAT PARLIAMENT WILL HOST THE MINISTER OF FINANCE, ALI ALLAWI, IN ITS FIRST SESSION NEXT YEAR, TO DISCUSS THE REASONS FOR RAISING THE DOLLAR EXCHANGE RATE AGAINST THE IRAQI DINAR.
Saadoun said in an interview singled out (Baghdad Today), "The House of Representatives will host the Minister of Finance in the first session of the Council at the beginning of next year, to discuss the reasons for raising the exchange rate of the dollar against the Iraqi dinar, and its negative effects on many groups of the Iraqi people." It will examine the exchange sections mentioned in the 2021 budget bill.
He added that "many members of Parliament are not convinced of the move to raise the exchange rate, because this matter must be ".accompanied by activating the local industry and reducing imported goods The Finance Minister Ali Allawi, said Monday 12/21/2020, the change of the dinar exchange rate against the dollar came in order to protect the economy.
He added that the budget is the first step in the path of economic reform and the difference in revenue by changing the exchange rate will be allocated to support vulnerable groups of society. In turn, Minister of Planning Khalid Al Battal stressed that "investment spending will be up to 8 trillion dinars in the budget of 2021.
He added, "The budget included the suspension train project, the port of Faw, and a number of projects
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THE DOLLAR FACES AN UNCLEAR SCENE ... AND THE GOVERNMENT MAY LOSE CONTROL OF "PRICING"
Confusion prevailed over the government and popular circles in Iraq due to the "incomprehensible" dollar prices that the markets have witnessed for two days, as the exchange rates are still fluctuating below the official rate announced by the Central Bank last Sunday.
Specialists and those interested in financial affairs explained this disparity in prices, due to the existence of a large offer for sale in exchange for the decline in demand for buying the dollar.
The exchange rates of the dollar in the markets, which ranged from 1380 to 1420 dinars to the dollar, caused widespread ridicule on social networking sites, as the state sells dollars at a price more expensive than the black market after setting it at 1460 dinars to one dollar.
(Mnt Goat – this article goes back to what I keep saying that the IMF and World Bank want to un-peg the dinar from the de facto peg and get it re-pegged to a “basket” of currencies and let it FLOAT. Do you see now the difficulties they are having leaving it on this single peg to the US dollar? Yes, can you see it now? It is causing much of their financial issues.)
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CABINET SENDS 2021 BUDGET TO PARLIAMENT: EMPLOYEES' SALARIES HAVE NOT BEEN TOUCHED MUCH.
Experts concerned with financial affairs explained this disparity in prices, with a large offer for sale in exchange for the decline in demand for the purchase of the dollar, expecting it to end soon, but the prices were still for the third day in a row did not exceed 1420 dinars per dollar, at a time when experts seemed unsure of whether the new problem would have already been fixed in the Iraqi market.
The price will not be stable
The economic and financial expert Basem Jamil Antoine revealed an "abnormal" situation that the markets will witness, represented by a variation in exchange rates of up to 20 tones.
Antoine said in an interview with the official agency, followed by "Ultra Iraq", that "the climate of the financial crisis is ready for rumors and speculation by some, while this process coincided with the government's directions to control the crisis and get out of filling the deficit in paying salaries."
He added that "there are those who claim from currency dealers that trillions of dinars are outside the banking framework, and this means that three quarters of the Iraqi currency publication falls outside the banking system," noting that "through this process, there will be a disparity in the exchange rates of the dollar even in the provincial markets." , And he will see you many weights, "adding that" if the disparity was in a single figure, this is very normal, but to be twenty tears, this is not normal. "
Antoine considered that "the currency is a means, not an end, and its strength is from the strength of the economy, but the Iraqi economy has weakened.
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WILL REDUCING THE "DINAR" SAVE THE IRAQI ECONOMY FROM SINKING?
The devaluation of the Iraqi currency will add inflation to the list of difficulties faced by the population recovering from a devastating war with ISIS.
Without major spending cuts, this will not be sufficient to prevent further economic pain, according to a Bloomberg report.
On Saturday, the government announced that it would devalue the currency for the first time since the US-led invasion in 2003, and devalued 23% of the dinar's value to reduce pressure on public finances as it tries to secure billions of dollars in foreign aid.
But the move, part of a broader plan to overhaul Iraq's oil-dependent economy and cut bloated public salaries, has already met opposition among parliamentarians who fear angering voters after mass protests that rocked the country last year.
It wouldn't be the last cut. So far, the devaluation has not caused a repeat of those deadly unrest in the second-largest producer in the Organization of the Petroleum Exporting Countries (OPEC), and the government said the devaluation would be a one-off.
Ziad Daoud, an emerging market economist, said devaluation is painful for ordinary citizens, But it is unlikely to be a one-off. The decrease in foreign exchange reserves envisaged by the budget is likely to lead to further adjustment in the currency - either formally or, more likely, on the black market.
11% contraction in the Iraqi economy
Although Iraq is the world's third largest oil exporter, its economy has suffered as the coronavirus pandemic depletes global demand for energy supplies. The quotas agreed with other oil exporters to stabilize the market also mean that the number of barrels that Iraq can pump is restricted, which narrows its options for increasing revenues.
According to the latest estimates of the International Monetary Fund, the Iraqi economy has shrunk by 11% this year.
This is better than the Fund's initial forecast of a 12.1% drop, but still leaves Iraq with the largest contraction among OPEC members subject to production caps, highlighting its over-reliance on hydrocarbons.
The International Monetary Fund expects that the net foreign assets of Iraq will continue to decline sharply until 2024. The debt-to-GDP ratio is among the highest in OPEC +, a group that includes non-OPEC oil exporters such as Russia.
$ 45 billion expected budget deficit
Oil exports in the 2021 budget are estimated at an average of 3.25 million barrels per day, with an assumed average price of $ 42. That would leave a budget deficit of about 58 trillion dinars ($ 45 billion).
According to the budget plan, which was approved by the cabinet on Sunday but not yet approved by Parliament, the amount of support from the International Monetary Fund is about six trillion dinars, which is a fraction of the gap.
Several analysts said the devaluation was necessary to show international lenders that Iraq is serious about reform, but not sufficient to trigger the aid the government wants.
More budget cuts
"Budget cuts will be needed to get substantial financial support," said Mark Bullund, senior credit research analyst at Red Intelligence.
Since the announcement of the devaluation, the gap between the official exchange rate and the currency rate on the black market has narrowed, indicating that the adjustment helped relieve pressure for now.
But the government formed after protests last year that toppled former Prime Minister Adel Abdul Mahdi remains fragile. Now it is battling opposition to plans to roll back the public sector in a country where politicians have bought their loyalty for decades by creating government jobs.
"They will have some problems with passing budget reforms through parliament," said Ahmed Al-Tabakshli, chief investment officer for Iraq at Asia Frontier Capital and assistant professor at the American University in Iraq - Sulaymaniyah. “But they will have to deal with it.
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A REQUEST TO RAISE THE EXCHANGE RATE TO 1600 DINARS AGAINST THE DOLLAR ... AND TWO ALTERNATIVE OFFICIAL PROPOSALS
Two measures that could have saved more money than the difference in the exchange rate of the dinar against the dinar were revealed .by an economist who pointed out that the Ministry of Finance requested that it be set at 1600 dinars to the dollar Economic expert Nabil Al-Marsoumi said - a televised statement that "the difference currently visible between the central bank and the market rate will continue until the budget is passed due to the state of uncertainty and uncertainty because everyone is waiting for the position of the Iraqi parliament on the 2021 budget, and what happens in terms of the difference between the official exchange rate and the exchange rate is caused by speculation and reaping." Through it the banking offices are huge sums and may be less severe soon.
He added that SOME BELIEVE THAT THE DECISION TO RAISE THE EXCHANGE RATE OF THE DOLLAR IS TECHNICAL AND WAS DONE THROUGH THE CENTRAL BANK, ALTHOUGH IT IS POLITICAL AND WAS MADE BY A GOVERNMENT DECISION FROM THE MINISTRY OF FINANCE. Parliamentary statements throw more uncertainty and lead to repercussions in the market He talked about government financial decisions in a deeper way, saying that "THE TIMING OF THE RECENT GOVERNMENT MEASURES IS VERY WRONG.
There is NO OTHER COUNTRY IN LIGHT OF THE CORONA CRISIS AND THE GLOBAL RECESSION THAT HAS DEVALUED ITS CURRENCY AND DEDUCTED FROM THE SALARIES OF ITS EMPLOYEES. ALL COUNTRIES HAVE A LAYER OF QUANTITATIVE MANAGEMENT PACKAGES AND INJECTED MONEY AND AID TO THE PUBLIC AND PRIVATE SECTORS
Cougar said in an interview singled out (Baghdad Today), Parliamentary Finance will study the draft of the country's general federal budget for the year 2021 accurately and amend the loopholes if they are contained in the draft law He added that "Parliament has the power to cancel or amend the article on the deduction of part of the employee allocations or with regard to tax deductions.
And that "the high rates of deductions, we will work to reduce them, provided they do not affect the employee significantly Last Tuesday, the reporter of the Parliamentary Finance Committee, Ahmed Al-Saffar, spoke about the most prominent remarks on the 2021 budget bill, and while noting that the budget is inconsistent with the country's economic reality, he suggested returning the bill to the government Al-Saffar said, in a televised interview, followed by (Baghdad Today): "Until now, the 2021 draft budget has not been sent to Parliament, which will need 4-5 days to study the project legally, after which the project will be transferred to the Finance Committee and we may use our powers to reduce spending.
Al-Saffar added, "This budget is inconsistent with the financial and economic situation in which the country is running, because it has high spending of 150 trillion dinars, according to the leaked version, which is very exaggerated," noting that "most of the paragraphs of ".the leaked draft are confirmed today that they are the same final draft
He continued, "The price of a barrel of oil on which the budget was built is illogical because it was $ 42 while the current price of a barrel was $ 52.
Covering the entire market the reporter of the Finance Committee in Parliament confirmed that “the 2021 draft budget, and in case it does not comply with the government program and the economic reality, will be returned to the government,” indicating that “we need 30-45 days to study and ."approve the project if there are no internal and external political interference, and it may disrupt it.
More He suggested that "Parliament will not accept the passage of more loans in the 2021 budget," reiterating his call for the need to reduce public spending and raise the price of a barrel of oil in the budget, because every dollar can add one trillion dinars annually.
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LEGAL PROCEDURES AGAINST 13 PRIVATE BANKS FOR VIOLATIONS OF ENTERING THE CURRENCY AUCTION
The Rusafa investigation court, which is competent to look into issues of integrity, money laundering and economic crime, decided, Thursday, to take legal measures against 13 private banks for violations of entering the currency auction.
A statement by the Supreme Judicial Council stated, "The Rusafa Investigation Court, which is competent to look into issues of integrity, money laundering and economic crime, has decided to take legal measures against 13 banks for violations of entering the currency auction without submitting customs permits that support entry of goods, tax accounting, and suspicions of falsifying documents related to this."
The statement added, "The aforementioned court decided to bring in the authorized directors of the violating banks due to their breach of the due diligence procedures imposed by the Anti-Money Laundering and Terrorist Financing Law No. (39) of 2015.
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REFORMS AND CURRENCY DEVALUATION ARE KEY TO ENSURING IRAQ’S ECONOMIC STABILITY, IMF SAYS
The country needs deeper structural reforms to strengthen economic resilience and lay the ground for more inclusive growth
STREET VENDORS WAIT FOR CUSTOMERS IN THE MAIN SHURJA MARKET IN BAGHDAD, IRAQ. THE COUNTRY DEVALUED ITS CURRENCY BY ABOUT 23 PER CENT AGAINST THE US DOLLAR ON DECEMBER 20, THE FIRST TIME THE PEG WAS ADJUSTED SINCE 2015.
Deepthi Nair
December 25, 2020
Fiscal reforms in Iraq combined with the recent devaluation of the exchange rate are “critically important steps to help reduce large external and fiscal imbalances and ensure the country’s economic stability”, according to a new report by the International Monetary Fund.
“The Covid-19 pandemic and the sharp decline in oil prices and output have aggravated Iraq’s economic vulnerabilities,” Tokhir Mirzoev, IMF mission chief for Iraq, said. “Severe fiscal financing constraints and challenges with meeting external and domestic payment obligations, including wages and pensions, necessitate a decisive recalibration of economic policies to maintain economic stability.”
The Washington-based lender welcomed the Iraq government’s plans to significantly increase targeted cash transfers to the poor as well as to enhance health-related spending to mitigate the impact of the Covid-19 crisis on the most vulnerable.
The Covid-19 pandemic and the sharp decline in oil prices and output have aggravated Iraq’s economic vulnerabilities Tokhir Mirzoev, IMF mission chief for Iraq faced with the twin shocks of dwindling oil revenue and the coronavirus-induced economic slowdown, Iraq devalued its currency by about 23 per cent against the US dollar on December 20, the first time the peg was adjusted since 2015.
The Central Bank of Iraq set the exchange rate at 1,450 dinars per dollar, from a peg of 1,182 dinars, for sales to the finance ministry. The dinar will be sold to the public at 1,470 and to other banks at 1,460.
“The structural distortions in the Iraqi economy are the ones that impoverished the public finances and restricted the ability of reform sought by the government and the Ministry of Finance,” the Central Bank of Iraq said. “Fiscal policy lagged behind in performing its roles, and monetary policy was preoccupied with repairing the outputs of confused fiscal policy.”
Welcoming the draft 2021 budget, the IMF said continued reforms, including in structural areas, will be instrumental in cementing short-term gains and laying the ground for higher, job-rich and more inclusive growth.
Iraq's central bank devalues currency by about 23% as anger mounts
Iraq's economy on the brink as Covid-19 and dwindling oil revenue bite
Iraq’s oil exports and revenues increase in October,“While providing relief from immediate financial tensions, the authorities’ short-term plan will need to be followed up with further reforms, including deeper structural reforms, to strengthen economic resilience, create further fiscal space for critical reconstruction and social spending, and lay the ground for higher, job-rich and more inclusive medium-term growth,” Mr Mirzoev added.
Last month, the World Bank said millions of Iraqis could be forced into poverty due to the twin shocks of the pandemic and the collapse of oil prices. Even in its “benign scenario”, about 5.5 million Iraqis could be pushed into poverty, the Washington-based lender said.
Opec’s second-largest producer depends on oil revenue to meet 90 per cent of government expenditure, including $5 billion spent on salaries for public servants each month.
A white paper on economic reform submitted to parliament by Mustafa Al Kadhimi's government proposes slashing the bill for government salaries to 12.5 per cent of gross domestic product within three years, from the current 25 per cent. The paper also calls for a reduction in benefits and allowances as well as reforms to the pension system.
Recommendations include phasing out subsidies to critical sectors in Iraq's economy, notably power.
Iraq’s economy was forecast to shrink by 12.1 per cent this year before the devaluation, the third-steepest contraction in the Arab world after Lebanon and Libya, according to the IMF.
Fitch Ratings said last month that a 20 per cent devaluation would increase next year’s budgeted oil revenue in dinar terms by about 6 per cent of gross domestic product.
A weaker dinar also means inflation in the country will rise as the cost of imports increases.
Iraq’s central bank said the depreciation would not be repeated as it would use foreign reserves to defend and stabilize the currency.
THE EXCHANGE RATE HAD BECOME “A MAJOR OBSTACLE” TO THE GROWTH AND DEVELOPMENT OF THE ECONOMY, the central bank said, prompting it to respond to the requirements of financing the budget at a rate that provides sufficient cover to the government’s needs.
(Mnt Goat – everyone should read this article VERY closely to help you understand this systemic problem of staying on the de facto peg to the US dollar. They must get off it.)
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PARLIAMENTARY FINANCE: RAISING THE PRICE OF THE DOLLAR WAS DIRECTED BY THE INTERNATIONAL MONETARY FUND AND THE WORLD BANK AND WITH THE KNOWLEDGE OF POLITICAL BLOCS, NOT THE GOVERNMENT.
December 24, 2020 Walter
Baghdad / Obelisk: Member of the Parliamentary Finance Committee, Magda Al-Tamimi, revealed, Thursday, December 24, 2020, that the IMF and the World Bank faced Iraq BY INCREASING THE PRICE OF THE DOLLAR AND REDUCING THE CURRENCY, AND IT WAS NOT A SPECIAL DECISION BY THE GOVERNMENT, NOTING THAT THIS MATTER IS WITH THE KNOWLEDGE OF POLITICAL BLOCS.
Al-Tamimi said in a statement followed by the obelisk, that a previous meeting was held between her and the Chairman of the Committee Haitham al-Jubouri and the Vice-Chairman of the Committee Muthanna al-Samarrai on the one hand and the World Bank on the other hand, and they indicated that the process of reducing the dinar against the dollar is the last financial reform solution that Iraq will take, and THAT IT MUST PROCEED WITH FINANCIAL REFORMS ACCORDING TO PERIODS THEY REACH LONG-TERM SOLUTIONS and not temporary solutions within an annual budget Tamimi said that their opinion changed and it was agreed with Iraq to reduce the dinar against the dollar, and this matter was reported.
(Mnt Goat – the devaluation is a temporary solution, if you can even call it that. It will blow up in their faces, if they don’t now do the project to delete the zeros and reinstate. There is no turning back…. )
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AL-SUMAIDA’I: THE CURRENCY AUCTION IS A SMUGGLING OF THE DOLLAR AND ITS CORRUPTION GOES BEYOND SIMPLE SALES
Baghdad: Al Furat News – An independent politician, Ibrahim Al-Sumaidaie, described the auction of selling the currency as “smuggling.”
Al-Sumaida’i said {to the Euphrates News} that “the currency auction is a smuggling of currency and is based on covering the sale of the dinar for the purpose of import and credit.”
He pointed out that “the latest statistics of the Central Statistics Agency revealed differences in the currency auction that exceeded the $ 26 billion without basis, even in the amount of $ 19 million for the purpose of import. Most of its invoices are forged and the Central Bank evades responsibility.”
Al-Sumaidaie added, “The only solution to stop the bleeding of currency selling is to inject the dollar in real terms and go to savings accounts,” noting that “the problem of this auction has been in place since 2010.”
The independent politician concluded, “The Central Bank of Iraq deluded the people that there is no alternative to the currency auction, and he admitted that there were 45 trillion dinars outside the monetary policy of Iraq, and the corruption of the auction went beyond simple direct sales to specialization.”
The deputy of the parliamentary wisdom bloc affiliated with the coalition of Iraqis, Khaled Al-Jushami, revealed that Iraq had lost 240 million dinars per month in the currency auction.
Al-Ghashami said in a press statement, that the Central Bank of Iraq sells 4 billion dollars a month, even if we divide it by 200 in 5 working days, it equals one billion dollars in four weeks, and if we multiply the 4 billion dollars by 6, the result is 240 billion dinars per month for the Iraqi state from the auction selling the currency.
He added that the profit goes to people in private banks, not to government banks, in order to return to the state treasury.
It is noteworthy that a member of the Parliamentary Finance Committee, Faleh Al-Sari, collected signatures to submit a request to question the Governor of the Central Bank of Iraq regarding suspicions in the currency auction.
In the year 2019, the Central Bank sold $ 44 billion of hard currency in the currency auction, mostly intended to cover the import of materials and goods that the country needs, stabilize the price of the Iraqi dinar and prevent inflation, according to bank data.
However, as economists say, THE VOLUME OF IRAQI IMPORTS REACHED 18 BILLION DOLLARS, AND THEY WARN OF “CURRENCY LEAKAGE” OUTSIDE IRAQ DUE TO “CORRUPTION” IN THE CURRENCY AUCTION IN THE COUNTRY.
In light of this, the Supreme Judicial Council announced that it would initiate the investigation of the documents of the joint banks in the foreign currency sale window.
A statement to inform the judiciary stated that the investigation court competent to combat money laundering and economic crime crimes responds to the request of the Central Bank and conducts the investigation with documents and documents submitted by the participating banks in the foreign currency sale and purchase window to verify its validity and compliance with the law.
(Mnt Goat – the currency auction corruption is all about going after the US dollar. If they started these currency auctions to prevent exactly what is happening by keeping them going, then it is time to end them. But what will Iraq use then to buy imports? Is the dinar strong enough? Will the neighboring countries want it? Surely be the devaluation down to 1450 is not helping the situation and will only cause more inflation, something they were always trying to prevent. So THINK, THINK and THINK some more – why would they suddenly do this devaluation then? There must be another purpose to it and we know what it is. But it has to be short term or else… )
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IT WILL CREATE THOUSANDS OF JOBS AS IRAQ ASPIRES TO BE THE “MAIN STOP” ON THE SILK ROAD
Transport Minister Nasser Hussein Al-Shibli confirmed, Saturday, THAT IRAQ WILL BE THE “MAIN STATION” IN THE INTERNATIONAL LAND AND MARITIME ROAD PROJECT, THE “SILK ROAD” LINKING THE TWO CONTINENTS OF ASIA AND EUROPE. The company implemented.
The official Al-Sabah newspaper quoted Al-Shibli as saying, “If a port is completed The FAO, Will be Iraq Center (Silk Road) You are working on China To connect Europe with Asia, “noting that” the completion of the project will follow the implementation of the dry canal to connect a port The FAO BTurkey, And thus completing the connecting line of China to me Pakistan And port The FAO By sea, and by rail to Europe. ”
Al-Shibli added that “the implementation of (Silk Road) Through Iraq It will provide thousands of jobs and a great economic return to the country, equivalent to oil financial revenues, and is linked to the completion of a port The FAOAl-Kabeer. ”
He continued that his ministry would complete the first phase of the port the FAO Early next year, explaining that “the sum of the allocated contract is two billion and 650 thousand dollars, and the ministry continues to negotiate with the Korean company to agree on this price and reduce the value of the contract,” pointing out that “Port The FAO It includes five large projects and a completion period of three and a half year.
Mentioned that China In 2013, it announced its initiative to create (Silk Road The new), which is a network of ports and railways that will connect nearly 65 countries around the world.
(Mnt Goat – the “silk road” is not going to happen with a currency that is almost worthless.)
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THE DEVALUATION OF THE DINAR IS THE BEGINNING .. "PAINFUL" STEPS AND A DIFFICULT YEAR FOR THE IRAQIS
report published by "Bloomberg" agency, Thursday, (December 24, 2020) warned that the devaluation of the Iraqi currency may not save the country and extricate it from its current crisis unless it is accompanied by more painful measures that include a significant reduction in government spending .
"Failure to make spending cuts will lead to severe economic consequences, in a country whose citizens are already suffering from many difficulties," the report said.
So far, the devaluation has not caused massive popular protests like the one that took place in October 2019, but economists expect this to be only the beginning of more painful measures .
The report quotes the economist Ziad Daoud as saying that "the devaluation will be painful for ordinary people, but it is unlikely that it will be a one-time". It is expected that the decrease in foreign exchange reserves expected in the next budget will lead to more adjustment in the currency, either officially. Or more likely on the black market. "
Last Saturday, the Iraqi government announced a devaluation of 23 percent for the first time since 2003, in order to reduce pressure on the budget in light of its attempts to secure billions of dollars in foreign aid .
And Bloomberg notes that "the draft state budget for 2021, which was approved by the government last Sunday and sent to Parliament, expects another difficult year for Iraq . "
Oil exports were estimated in the next budget at an average of 3.25 million barrels per day, at an assumed average price of 42 dollars, with a deficit of about 45 billion dollars .
Many analysts said that "the devaluation was necessary to show Iraq to international lenders that it is serious about reforms," but pointed out that "this is not sufficient for the country to obtain the financial assistance that the Iraqi government hopes to obtain . "
Mark Pohlund, senior credit research analyst at the "REDD Intelligence" platform , said, "Iraq needs to cut its budget further in order to obtain substantial financial support."
And the central bank set, at the end of last week, a new exchange rate for the national currency, to raise the dollar to 1450 dinars compared to 1190 dinars before the decision, which is the first in half a decade .
The decision sparked panic among Iraqis, many of whom rushed to exchange offices to buy dollars, and to supermarkets to store supplies .
Finance Minister Ali Allawi said that these measures are the only ones capable of preventing a complete collapse .
He told reporters Sunday, "IF WE DO NOT CHANGE THE EXCHANGE RATE OR ADJUST OUR SPENDING, OUR RESERVES (OF FOREIGN CURRENCY) WILL BE DEPLETED WITHIN SIX OR SEVEN MONTHS."
In particular, the draft 2021 budget includes the introduction of an income tax. And according to the budget proposal, Iraq is also seeking to increase its non-oil revenues in the face of declining crude revenues .
Iraqi officials who worked on preparing the bill say that their goal is to "withstand an unprecedented financial crisis resulting from the emerging Corona virus pandemic and the collapse of oil prices, which Iraq relies on sales to finance 90 percent of its budget . "
Baghdad is expected to end this turbulent year, with GDP growth shrinking by 11 percent and the poverty rate rising to 40 percent of the country's 40 million people.
(Mnt Goat – Yes, the devaluation is a necessary “painful step” . Like I said it is a step in the process and is being used as a means to an end. )
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RamblerNash- GURU HUNTER
- Posts : 24234
Join date : 2015-02-19
Re: Mnt Goat Wants Your Money...And News Brief 12/29/20
by RamblerNash Thu Dec 31, 2020 12:23 am
THE DECISION TO REDUCE THE DINAR: TO TREAT TREATMENT OR TO STOP THE COLLAPSE
December 24, 2020 Walter
Dr. Muhannad Talib Al-Hamdi
Riot police were sent to protect the headquarters of the Central Bank of Iraq in central Baghdad, before the announcement of the devaluation of the local currency, fearing the outbreak of popular protests. The Iraqi government’s decision to reduce the value of the dinar against the US dollar by nearly 20% caused an uproar in the Iraqi street.
The Central Bank of Iraq statement regarding this reduction indicated, “It must be emphasized here that this change (reduction) in the value of the Iraqi dinar will be one-time only and will not be repeated. “The central bank will defend this rate and its stability by supporting its foreign exchange reserves, which are still at stable levels,” the statement added .
The bank blamed poor economic policies over the past decade. He said that he “has no choice but to intervene” because poor economic planning and financial policies on the part of Iraqi politicians have led to the transformation of Iraq into an oil-exporting country only, with the bulk of state expenditures directed to pay money to the bloated public sector.
Unofficial estimates indicated that the successive Iraqi governments that followed the formation of the first Iraqi authority after the invasion in 2003 were responsible for the disappearance of about a quarter of a trillion dollars, which were allocated to reforming the health, education, electricity and public services sectors.
The Iraqi government reached this decision after it was unable to pay the salaries of its employees for two consecutive months, and had to borrow from the Central Bank of Iraq and other internal parties . The government sells oil in US dollars, which it uses to buy Iraqi dinars from the central bank to finance salaries and public services. Reducing the value of the local currency against the dollar means that it will get more Iraqi dinars from the central bank.
Years ago, the Central Bank of Iraq fixed the exchange rate of the Iraqi dinar against the US dollar, which is 1119 Iraqi dinars per dollar. Despite the emergence of a parallel black market selling dollars at a higher price, the difference was within the permissible margin of economic maneuver. However, recent months have witnessed many fluctuations in the exchange rate, due to the Coronavirus pandemic and the accompanying global financial crisis, and the decline in Iraq’s oil revenues after reducing the volume of its oil exports .
Although the CBI is independent, the government pushed for the cut, the largest in Iraq since 2003, to enable it to pay dinar-denominated salaries to more than four million government employees. The decision to devalue the currency angered public sector workers. Many fear that the weakening of the dinar, as well as the proposed budget plans to cut salaries and impose taxes, will amount to harsh wage cuts.
Popular reaction:
The decision of the Central Bank of Iraq to reduce the value of the dinar sparked a state of panic among Iraqis, many of whom rushed to exchange offices to buy dollars, and to supermarkets to buy and store supplies .
Several hundred demonstrators gathered in the famous Tahrir Square in Baghdad, to protest against the sudden decline in their purchasing power and urged the government to reconsider its decision. A young protester held up a banner reading “Before the dinar, the government must collapse.” Particularly among the demonstrators were numbers of seniors and retirees critical of the measure that greatly reduced the value of their pensions .
Hundreds of protesters also gathered on Monday in the city of Kut, where merchants said they would now have to reduce imports because they are paying in US dollars for the products they buy from abroad. Agri-food dealers and wholesalers in the city of Nasiriyah raised their prices by 20%, according to an AFP correspondent. In Basra, the head of the local branch of the High Commissioner for Human Rights, Mr. Mahdi Al-Tamimi, confirmed that the price hike came as a shock to consumers. The curse of oil or its blessing:
The second-largest producer of crude oil in OPEC is completely dependent on oil exports, and Baghdad’s revenue has in fact been cut in half due to the collapse in oil prices. This left the government unable to cover its costs. The International Monetary Fund expects that Iraq’s fiscal deficit will widen to 20% of GDP this year .
The decline in oil revenues has put pressure on the Central Bank of Iraq’s foreign currency reserves, which the World Bank said had fallen to about $ 50 billion by last September, forcing the government to borrow heavily to pay salaries. The size of the public sector in Iraq has more than quadrupled since the invasion in 2003, and the government has simply become the largest employer in the country. But she was late in paying the salaries of employees and retirees in November, causing social unrest .
With the World Bank predicting that the poverty rate will rise sharply with the shrinking of the oil-dependent economy, the financial situation of Iraq, exhausted by wars and corruption, is so dangerous that Iraq is in talks with the International Monetary Fund for support . Sajjad Jiyad, a fellow at Century Research Institute from its office in Baghdad, says that the devaluation “sends a signal to the International Monetary Fund and others about the extent of despair the situation has reached and that Iraq is ready to take some of these painful steps,” meaning the march towards more financial austerity. .
But with Iraq dependent on imports, a weakening of the dinar is likely to lead to inflation. Prices have remained low so far, in part because Iraq’s two largest trading partners, Iran and Turkey, have seen a significant depreciation of their currency. “For the general population, there is concern that food prices will rise, as the country still imports most of the foodstuffs,” says Mr. Sajjad. The Minister of Finance, Mr. Ali Allawi, warned that Iraq must take serious measures to reform the expenditures, which were amplified with the use of politicians using public employment to buy votes and loyalties. This month, the International Monetary Fund advised the Iraqi government, in building its budget for 2021, to give priority “to reversing the unsustainable expansion of the cost of salaries and pensions, reducing ineffective energy subsidies, and increasing non-oil revenues .” The Minister of Finance added, “One of the main reasons for the devaluation of the dinar is to push the economic cycle forward and revitalize the private sector and domestic production to avoid severe budget deficits . ” He also said, “What has been done is a preemptive step. Without this step, huge inflation will occur. We will encounter problems that we will not accept .”
The minister says the country’s foreign reserves could be depleted within six to seven months if government spending remains on the current track without changing the exchange rate. Without this step, the budget deficit in 2021 could reach 100 trillion dinars (84 billion dollars) . The International Monetary Fund expects Iraq’s economy to contract by 12% this year, more than any other OPEC member state.
“The devaluation was inevitable in light of the low oil prices and budgetary pressures facing Iraq,” said Ziad Daoud, an economist who specializes in emerging market studies at Bloomberg. “It is also important to monitor the popular response to the resulting increase in the cost of living and the government’s austerity program, ” he adds .
Since the collapse of oil prices earlier this year, Iraq has been suffering from an unprecedented liquidity crisis. The state has had to borrow from the bank’s dollar reserves to pay nearly $ 5 billion a month in public sector salaries and pensions. But oil revenues, which make up 90% of the budget, come in, on average, at $ 3.5 billion In a move toward austerity, the state’s proposed budget for 2021 also calls for record spending, projecting a deficit of nearly $ 40 billion. The Cabinet voted on the budget and sent it to Parliament, where it is expected to face strong opposition. But those familiar with the insights of Iraqi politics say that it will eventually pass according to the desire of the leaders of the blocs and the influential political parties.
Over the past two decades, corruption has created a double-edged problem for Iraq. Weak, totalitarian Iraqi governments built on the basis of sectarian quotas mean that every major political party runs one or more ministries. They run these bureaucracies not in the interest of the country but as huge patronage networks: corruption machines that suck oil revenues from the treasury and pass them on to their public in the form of jobs, contracts, and other perks. The spread of graft has stifled what was previously owned by the small private sector in Iraq, which means that there are not many alternatives to public sector jobs .
Therefore, it is not surprising that there has been a more than fourfold increase in the number of workers in the public sector since 2004, and the government pays 400% more salaries than it was 15 years ago. Thus, the government and its oil revenues became the main engine of the Iraqi economy, which gives the Iraqi people the opportunity to live.
The Iraqi economic expert, Mr. Munir Al-Obaidi, said in an interview with Al-Hurra channel that the effect of the devaluation will be negative at the beginning of the stage, which “will continue for six months or a year”, and after that “it will contribute to improving the GDP from different sectors such as the industrial, agricultural and service sectors, because it will increase the activity of these sectors.”
But Iraqi industrialists say that the talk that the decision to devalue the Iraqi currency will lead to the encouragement of local industry “is too simplistic .” The Iraqi industrialist, Mr. Moataz Kamouneh, said in an interview with the same channel, that “the industry needs infrastructure such as electricity, sewers, water lines, transmission lines, import and export facilities, and all of these are not available .” And he adds that “the raw materials have increased in value after the devaluation of the dinar because it is imported, which means high costs, and the years of Iraqi industrial unemployment have made Iraq lose the advantage of keeping pace with other countries with technology and destroying the old infrastructure .”
Is there a hand that extends into Iraq :
The devaluation of the currency, without accompanying economic reforms that the political forces in Iraq refuse to consider, will paralyze imports, undermine savings and increase hardship. If the United States government is willing to provide some aid, it is likely that many other countries will also participate. International financial institutions such as the World Bank, the International Monetary Fund, the Gulf states, and even some European and East Asian countries are expected to provide some funds .
Iraq crisis is a liquidity crisis. Iraq will need money to prevent the collapse of its financial system, which may lead the country into a spiral of violence that its borders do not contain. If the United States pledges to provide a certain amount, perhaps one billion dollars, it will be possible to assemble a package of up to 5 billion dollars to help Iraq in cooperation with other countries. The idea of providing one billion dollars to support the emergency budget for Iraq may seem very difficult at the moment. But this should not be seen as such. The United States should have learned over the past 20 years two important lessons about this part of the world. First of all, what happens in the Middle East does not stay there. And second, one ounce of prevention is better than a pound of cure, as Washington’s tragic policies toward Iraq, Syria and Libya have shown.
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AN EXPERT REVEALS WHEN THE ECONOMIC CONFUSION DUE TO RAISING THE DOLLAR WILL END
The economic expert, Abdul Rahman Al-Mashhadani, suggested the end of the economic confusion in the local market AFTER RAISING THE DOLLAR EXCHANGE RATE by an official decision of the Ministry of Finance and the Central Bank of Iraq.
"THE CONFUSION IN THE MARKET WILL END NEXT WEEK AND WILL BEGIN TO APPROACH THE PRICE SET BY THE MINISTRY OF FINANCE AND THE CENTRAL BANK OF IRAQ AS A RESULT OF THE START OF WITHDRAWAL, THE IMPLEMENTATION OF THE DEMAND AND THE STABILITY OF THE BALANCE BETWEEN THE OFFICIAL EXCHANGE RATE AND THE LOCAL MARKET," Al-Mashhadani said.
He favored "a rise in commodity prices up to 40% in conjunction with work on the new exchange rate of 1470 thousand dinars per hundred dollars, and there is no decrease in the price of the dollar after the recent central bank decision on raising the currency exchange."
Al-Mashhadani said, "The recovery of the Iraqi economy needs a long period, as the justifications put forward by the government are correct in the long-term talk."
He pointed out that "the government was supposed to prepare the industrial and agricultural sectors that suffer dumping and price war before announcing the decision to increase the dollar."
Last Thursday, Iraq recorded a rise in the dollar’s exchange rate.
The exchange rate on the Al-Kifah and Al-Harithiya stock exchanges in Baghdad was 1420 dinars, or 142 thousand dinars for one hundred dollars.
Yesterday's price was at 1405 dinars per dollar.
As for the exchange office prices, they also rose to 1,430 dinars for sale and 1,410 dinars for purchase.
In Erbil, the dollar rose to 1,420 dinars, and in Basra 1,410 dinars.
It is noteworthy that the Iraqi Central Bank decided on 19 December to amend the dollar exchange rate, as follows:
1450 dinars per dollar, the price of buying foreign currency from the Ministry of Finance.
1460 dinars per dollar, the selling price of foreign currency to banks.
1470 dinars per dollar is the selling price of foreign currency to the public.
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AL-ARAJI: THE WORLD BANK DEMANDED THAT THE DOLLAR EXCHANGE RATE BE 1660 DINARS
The former Iraqi Deputy Prime Minister said that the World Bank demanded that the exchange rate of the dollar be one thousand six hundred and sixty dinars in order to help and support Iraq in solving its financial crisis.
In a tweet on Twitter, Al-Araji asked about the mechanism that the government and parliament will deal with, saying: Will the government and parliament have a unified position, whether by rejecting or accepting? Or will some political blocs take advantage of this to bid, as they did previously?
Al-Araji: The World Bank asked Iraq to raise the dollar exchange to 1660 dinars
link
Former Deputy Prime Minister Bahaa al-Araji revealed that the World Bank had asked Iraq to raise the dollar exchange rate to 1660 Iraqi dinars in exchange for its help in solving the financial crisis.
Al-Araji said in a tweet on his Twitter page, today, "In order to help and support Iraq in solving its financial crisis ... The World Bank asked Iraq that the dollar exchange rate be (1660) dinars."
He asked whether the government and parliament "have a unified position, whether by rejection or acceptance?" Or will some political blocs take advantage of this to bid, as they did before.
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A CENTRAL BANK ADVISOR DETERMINES ITS ORIENTATIONS REGARDING THE EXCHANGE RATE AND THE POSSIBILITY OF CHANGING IT AGAIN
Ihssan Shamran, the advisor at the Central Bank of Iraq, determined the bank’s orientations regarding the exchange rate and the possibility of changing it again.
The Central Bank monitors the exchange rates and tightens this in order to prevent instability and jumps in the exchange rate, and" there is no intention of the Central Bank to adjust the exchange rate at a higher value to the dollar against the dinar, Shamran said in a televised interview
he pointed out that the increase in the exchange rate took place only once, and if it was in a gradual manner, there would have been instability, an unstable price, and concern among merchants and citizens.
And that "there are people and banks that have monopolized the dollar after raising the value of its exchange with the aim of speculation, but what happened is that its price has decreased and this is convenient for the central bank because it insisted on changing the price for one time and in a non-gradual manner to create reassurance among the public.
He pointed out that the central bank is independent, but it is part of the financial and monetary administrations of the state. It must appoint the state and have previously entered due to late salaries. He advised the state to borrow.
Yesterday, a member of the Economic Committee in the House of Representatives, Nada Shaker Jawdat, confirmed, on Saturday, that there is a parliamentary tendency to request a change in the exchange rate for a reason related to 3 million Iraqi citizens.
Jawdat told (Baghdad Today), "The Iraqi Contractors Union, which represents a large sector in the country, and one of dozens of sectors affected by the increase in the dollar exchange rate, confirmed in our meeting with them that 3 million workers will lose their ."jobs due to the increase in the exchange rate, and expose them to great losses as a result.
And she added, raising the dollar exchange rate pushed all prices up, including the raw materials in which local industries operate, indicating that support for the local industry comes through a road map that enters in multiple stages and not through a sudden decision, such as raising the dollar and making prices flame in the markets and she continued that "the House of Representatives will press towards discussing the possibility of modifying the exchange rate file ".after the arrival of the federal budget law.
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Articles End
Their words not mine…..No Rumors, No Hype, No Opinions ,,,,,
Just the FACTS!
Disclaimer: All information in this newsletter is not intended for investment decisions / purposes. Mnt Goat is not a financial analyst, planner, banker, attorney or associated in any role with giving out professional investment advice.
In ending I want everyone to know your constant prayers in the fight against evil is working in the battle against the corruption of Iran in Iraq, the corruption of the democrat party in the USA and the corruption of the labor party in the UK. Yes, your prayers ARE WORKING. God has guided these patriotic men and women on this new battle field. It is a battle for the mind filled with propaganda and lies. He has guided the honest, patriots of Iraq, the USA and the UK to fight for their homeland.
So, this new war now on our citizens is underway. 3 corrupt countries, 3 heroic men and 3 miracles. God’s Hand At Work!
New battles are raging every day over corruption. These are battles to save our societies from the corrupt politicians and secret societies who are bent on taking what they want from our current wealth and from future generations without our permission. It is a battle against this crooked idealism of globalization and a One World Government of enslavement.
We must keep praying for the end to the rapid corruption and enslavement of people. We must pray for our leaders that they may be anointed by the Holy Spirit and guided to do God’s work. We must stand by them and let them know we are still there to support them, even after the election is over. I have composed a prayer maybe we can all pray today in our own way and until the reinstatement of the Iraq dinar occurs.
PRAYER
“For all leaders of all nations, that they may be anointed by the Holy Spirit to do God’s will and work to bring about abundance and prosperity to their nation. That they may listen to the Holy Spirit for guidance in fighting this war on us.
To fight this waging war on corruption, our freedoms, our liberties, socialist plans and injustice.
To bring all those corrupt to justice and pay for their crimes no matter how high up in the government or politics they are.
To end the corona virus “man-made crisis” and to awaken people everywhere of the dark side and the tools it will use to gain power and control.
That the FREE WORLD may be a shining example for the rest of the entire planet.
In the name of Jesus Christ our King and Savior, Amen”
P.S. (Please if you can – say the rosary every day. You can do it while you take your daily run or walk. You can do while you lie in bed in the morning or nighttime before sleep. You don’t even need a set of rosary beads as you can use your ten fingers ...lol..lol..lol… )
Auf Wiedersehen
Much love to ya all,
Mnt Goat
December 24, 2020 Walter
Dr. Muhannad Talib Al-Hamdi
Riot police were sent to protect the headquarters of the Central Bank of Iraq in central Baghdad, before the announcement of the devaluation of the local currency, fearing the outbreak of popular protests. The Iraqi government’s decision to reduce the value of the dinar against the US dollar by nearly 20% caused an uproar in the Iraqi street.
The Central Bank of Iraq statement regarding this reduction indicated, “It must be emphasized here that this change (reduction) in the value of the Iraqi dinar will be one-time only and will not be repeated. “The central bank will defend this rate and its stability by supporting its foreign exchange reserves, which are still at stable levels,” the statement added .
The bank blamed poor economic policies over the past decade. He said that he “has no choice but to intervene” because poor economic planning and financial policies on the part of Iraqi politicians have led to the transformation of Iraq into an oil-exporting country only, with the bulk of state expenditures directed to pay money to the bloated public sector.
Unofficial estimates indicated that the successive Iraqi governments that followed the formation of the first Iraqi authority after the invasion in 2003 were responsible for the disappearance of about a quarter of a trillion dollars, which were allocated to reforming the health, education, electricity and public services sectors.
The Iraqi government reached this decision after it was unable to pay the salaries of its employees for two consecutive months, and had to borrow from the Central Bank of Iraq and other internal parties . The government sells oil in US dollars, which it uses to buy Iraqi dinars from the central bank to finance salaries and public services. Reducing the value of the local currency against the dollar means that it will get more Iraqi dinars from the central bank.
Years ago, the Central Bank of Iraq fixed the exchange rate of the Iraqi dinar against the US dollar, which is 1119 Iraqi dinars per dollar. Despite the emergence of a parallel black market selling dollars at a higher price, the difference was within the permissible margin of economic maneuver. However, recent months have witnessed many fluctuations in the exchange rate, due to the Coronavirus pandemic and the accompanying global financial crisis, and the decline in Iraq’s oil revenues after reducing the volume of its oil exports .
Although the CBI is independent, the government pushed for the cut, the largest in Iraq since 2003, to enable it to pay dinar-denominated salaries to more than four million government employees. The decision to devalue the currency angered public sector workers. Many fear that the weakening of the dinar, as well as the proposed budget plans to cut salaries and impose taxes, will amount to harsh wage cuts.
Popular reaction:
The decision of the Central Bank of Iraq to reduce the value of the dinar sparked a state of panic among Iraqis, many of whom rushed to exchange offices to buy dollars, and to supermarkets to buy and store supplies .
Several hundred demonstrators gathered in the famous Tahrir Square in Baghdad, to protest against the sudden decline in their purchasing power and urged the government to reconsider its decision. A young protester held up a banner reading “Before the dinar, the government must collapse.” Particularly among the demonstrators were numbers of seniors and retirees critical of the measure that greatly reduced the value of their pensions .
Hundreds of protesters also gathered on Monday in the city of Kut, where merchants said they would now have to reduce imports because they are paying in US dollars for the products they buy from abroad. Agri-food dealers and wholesalers in the city of Nasiriyah raised their prices by 20%, according to an AFP correspondent. In Basra, the head of the local branch of the High Commissioner for Human Rights, Mr. Mahdi Al-Tamimi, confirmed that the price hike came as a shock to consumers. The curse of oil or its blessing:
The second-largest producer of crude oil in OPEC is completely dependent on oil exports, and Baghdad’s revenue has in fact been cut in half due to the collapse in oil prices. This left the government unable to cover its costs. The International Monetary Fund expects that Iraq’s fiscal deficit will widen to 20% of GDP this year .
The decline in oil revenues has put pressure on the Central Bank of Iraq’s foreign currency reserves, which the World Bank said had fallen to about $ 50 billion by last September, forcing the government to borrow heavily to pay salaries. The size of the public sector in Iraq has more than quadrupled since the invasion in 2003, and the government has simply become the largest employer in the country. But she was late in paying the salaries of employees and retirees in November, causing social unrest .
With the World Bank predicting that the poverty rate will rise sharply with the shrinking of the oil-dependent economy, the financial situation of Iraq, exhausted by wars and corruption, is so dangerous that Iraq is in talks with the International Monetary Fund for support . Sajjad Jiyad, a fellow at Century Research Institute from its office in Baghdad, says that the devaluation “sends a signal to the International Monetary Fund and others about the extent of despair the situation has reached and that Iraq is ready to take some of these painful steps,” meaning the march towards more financial austerity. .
But with Iraq dependent on imports, a weakening of the dinar is likely to lead to inflation. Prices have remained low so far, in part because Iraq’s two largest trading partners, Iran and Turkey, have seen a significant depreciation of their currency. “For the general population, there is concern that food prices will rise, as the country still imports most of the foodstuffs,” says Mr. Sajjad. The Minister of Finance, Mr. Ali Allawi, warned that Iraq must take serious measures to reform the expenditures, which were amplified with the use of politicians using public employment to buy votes and loyalties. This month, the International Monetary Fund advised the Iraqi government, in building its budget for 2021, to give priority “to reversing the unsustainable expansion of the cost of salaries and pensions, reducing ineffective energy subsidies, and increasing non-oil revenues .” The Minister of Finance added, “One of the main reasons for the devaluation of the dinar is to push the economic cycle forward and revitalize the private sector and domestic production to avoid severe budget deficits . ” He also said, “What has been done is a preemptive step. Without this step, huge inflation will occur. We will encounter problems that we will not accept .”
The minister says the country’s foreign reserves could be depleted within six to seven months if government spending remains on the current track without changing the exchange rate. Without this step, the budget deficit in 2021 could reach 100 trillion dinars (84 billion dollars) . The International Monetary Fund expects Iraq’s economy to contract by 12% this year, more than any other OPEC member state.
“The devaluation was inevitable in light of the low oil prices and budgetary pressures facing Iraq,” said Ziad Daoud, an economist who specializes in emerging market studies at Bloomberg. “It is also important to monitor the popular response to the resulting increase in the cost of living and the government’s austerity program, ” he adds .
Since the collapse of oil prices earlier this year, Iraq has been suffering from an unprecedented liquidity crisis. The state has had to borrow from the bank’s dollar reserves to pay nearly $ 5 billion a month in public sector salaries and pensions. But oil revenues, which make up 90% of the budget, come in, on average, at $ 3.5 billion In a move toward austerity, the state’s proposed budget for 2021 also calls for record spending, projecting a deficit of nearly $ 40 billion. The Cabinet voted on the budget and sent it to Parliament, where it is expected to face strong opposition. But those familiar with the insights of Iraqi politics say that it will eventually pass according to the desire of the leaders of the blocs and the influential political parties.
Over the past two decades, corruption has created a double-edged problem for Iraq. Weak, totalitarian Iraqi governments built on the basis of sectarian quotas mean that every major political party runs one or more ministries. They run these bureaucracies not in the interest of the country but as huge patronage networks: corruption machines that suck oil revenues from the treasury and pass them on to their public in the form of jobs, contracts, and other perks. The spread of graft has stifled what was previously owned by the small private sector in Iraq, which means that there are not many alternatives to public sector jobs .
Therefore, it is not surprising that there has been a more than fourfold increase in the number of workers in the public sector since 2004, and the government pays 400% more salaries than it was 15 years ago. Thus, the government and its oil revenues became the main engine of the Iraqi economy, which gives the Iraqi people the opportunity to live.
The Iraqi economic expert, Mr. Munir Al-Obaidi, said in an interview with Al-Hurra channel that the effect of the devaluation will be negative at the beginning of the stage, which “will continue for six months or a year”, and after that “it will contribute to improving the GDP from different sectors such as the industrial, agricultural and service sectors, because it will increase the activity of these sectors.”
But Iraqi industrialists say that the talk that the decision to devalue the Iraqi currency will lead to the encouragement of local industry “is too simplistic .” The Iraqi industrialist, Mr. Moataz Kamouneh, said in an interview with the same channel, that “the industry needs infrastructure such as electricity, sewers, water lines, transmission lines, import and export facilities, and all of these are not available .” And he adds that “the raw materials have increased in value after the devaluation of the dinar because it is imported, which means high costs, and the years of Iraqi industrial unemployment have made Iraq lose the advantage of keeping pace with other countries with technology and destroying the old infrastructure .”
Is there a hand that extends into Iraq :
The devaluation of the currency, without accompanying economic reforms that the political forces in Iraq refuse to consider, will paralyze imports, undermine savings and increase hardship. If the United States government is willing to provide some aid, it is likely that many other countries will also participate. International financial institutions such as the World Bank, the International Monetary Fund, the Gulf states, and even some European and East Asian countries are expected to provide some funds .
Iraq crisis is a liquidity crisis. Iraq will need money to prevent the collapse of its financial system, which may lead the country into a spiral of violence that its borders do not contain. If the United States pledges to provide a certain amount, perhaps one billion dollars, it will be possible to assemble a package of up to 5 billion dollars to help Iraq in cooperation with other countries. The idea of providing one billion dollars to support the emergency budget for Iraq may seem very difficult at the moment. But this should not be seen as such. The United States should have learned over the past 20 years two important lessons about this part of the world. First of all, what happens in the Middle East does not stay there. And second, one ounce of prevention is better than a pound of cure, as Washington’s tragic policies toward Iraq, Syria and Libya have shown.
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AN EXPERT REVEALS WHEN THE ECONOMIC CONFUSION DUE TO RAISING THE DOLLAR WILL END
The economic expert, Abdul Rahman Al-Mashhadani, suggested the end of the economic confusion in the local market AFTER RAISING THE DOLLAR EXCHANGE RATE by an official decision of the Ministry of Finance and the Central Bank of Iraq.
"THE CONFUSION IN THE MARKET WILL END NEXT WEEK AND WILL BEGIN TO APPROACH THE PRICE SET BY THE MINISTRY OF FINANCE AND THE CENTRAL BANK OF IRAQ AS A RESULT OF THE START OF WITHDRAWAL, THE IMPLEMENTATION OF THE DEMAND AND THE STABILITY OF THE BALANCE BETWEEN THE OFFICIAL EXCHANGE RATE AND THE LOCAL MARKET," Al-Mashhadani said.
He favored "a rise in commodity prices up to 40% in conjunction with work on the new exchange rate of 1470 thousand dinars per hundred dollars, and there is no decrease in the price of the dollar after the recent central bank decision on raising the currency exchange."
Al-Mashhadani said, "The recovery of the Iraqi economy needs a long period, as the justifications put forward by the government are correct in the long-term talk."
He pointed out that "the government was supposed to prepare the industrial and agricultural sectors that suffer dumping and price war before announcing the decision to increase the dollar."
Last Thursday, Iraq recorded a rise in the dollar’s exchange rate.
The exchange rate on the Al-Kifah and Al-Harithiya stock exchanges in Baghdad was 1420 dinars, or 142 thousand dinars for one hundred dollars.
Yesterday's price was at 1405 dinars per dollar.
As for the exchange office prices, they also rose to 1,430 dinars for sale and 1,410 dinars for purchase.
In Erbil, the dollar rose to 1,420 dinars, and in Basra 1,410 dinars.
It is noteworthy that the Iraqi Central Bank decided on 19 December to amend the dollar exchange rate, as follows:
1450 dinars per dollar, the price of buying foreign currency from the Ministry of Finance.
1460 dinars per dollar, the selling price of foreign currency to banks.
1470 dinars per dollar is the selling price of foreign currency to the public.
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AL-ARAJI: THE WORLD BANK DEMANDED THAT THE DOLLAR EXCHANGE RATE BE 1660 DINARS
The former Iraqi Deputy Prime Minister said that the World Bank demanded that the exchange rate of the dollar be one thousand six hundred and sixty dinars in order to help and support Iraq in solving its financial crisis.
In a tweet on Twitter, Al-Araji asked about the mechanism that the government and parliament will deal with, saying: Will the government and parliament have a unified position, whether by rejecting or accepting? Or will some political blocs take advantage of this to bid, as they did previously?
Al-Araji: The World Bank asked Iraq to raise the dollar exchange to 1660 dinars
link
Former Deputy Prime Minister Bahaa al-Araji revealed that the World Bank had asked Iraq to raise the dollar exchange rate to 1660 Iraqi dinars in exchange for its help in solving the financial crisis.
Al-Araji said in a tweet on his Twitter page, today, "In order to help and support Iraq in solving its financial crisis ... The World Bank asked Iraq that the dollar exchange rate be (1660) dinars."
He asked whether the government and parliament "have a unified position, whether by rejection or acceptance?" Or will some political blocs take advantage of this to bid, as they did before.
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A CENTRAL BANK ADVISOR DETERMINES ITS ORIENTATIONS REGARDING THE EXCHANGE RATE AND THE POSSIBILITY OF CHANGING IT AGAIN
Ihssan Shamran, the advisor at the Central Bank of Iraq, determined the bank’s orientations regarding the exchange rate and the possibility of changing it again.
The Central Bank monitors the exchange rates and tightens this in order to prevent instability and jumps in the exchange rate, and" there is no intention of the Central Bank to adjust the exchange rate at a higher value to the dollar against the dinar, Shamran said in a televised interview
he pointed out that the increase in the exchange rate took place only once, and if it was in a gradual manner, there would have been instability, an unstable price, and concern among merchants and citizens.
And that "there are people and banks that have monopolized the dollar after raising the value of its exchange with the aim of speculation, but what happened is that its price has decreased and this is convenient for the central bank because it insisted on changing the price for one time and in a non-gradual manner to create reassurance among the public.
He pointed out that the central bank is independent, but it is part of the financial and monetary administrations of the state. It must appoint the state and have previously entered due to late salaries. He advised the state to borrow.
Yesterday, a member of the Economic Committee in the House of Representatives, Nada Shaker Jawdat, confirmed, on Saturday, that there is a parliamentary tendency to request a change in the exchange rate for a reason related to 3 million Iraqi citizens.
Jawdat told (Baghdad Today), "The Iraqi Contractors Union, which represents a large sector in the country, and one of dozens of sectors affected by the increase in the dollar exchange rate, confirmed in our meeting with them that 3 million workers will lose their ."jobs due to the increase in the exchange rate, and expose them to great losses as a result.
And she added, raising the dollar exchange rate pushed all prices up, including the raw materials in which local industries operate, indicating that support for the local industry comes through a road map that enters in multiple stages and not through a sudden decision, such as raising the dollar and making prices flame in the markets and she continued that "the House of Representatives will press towards discussing the possibility of modifying the exchange rate file ".after the arrival of the federal budget law.
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Articles End
Their words not mine…..No Rumors, No Hype, No Opinions ,,,,,
Just the FACTS!
Disclaimer: All information in this newsletter is not intended for investment decisions / purposes. Mnt Goat is not a financial analyst, planner, banker, attorney or associated in any role with giving out professional investment advice.
In ending I want everyone to know your constant prayers in the fight against evil is working in the battle against the corruption of Iran in Iraq, the corruption of the democrat party in the USA and the corruption of the labor party in the UK. Yes, your prayers ARE WORKING. God has guided these patriotic men and women on this new battle field. It is a battle for the mind filled with propaganda and lies. He has guided the honest, patriots of Iraq, the USA and the UK to fight for their homeland.
So, this new war now on our citizens is underway. 3 corrupt countries, 3 heroic men and 3 miracles. God’s Hand At Work!
New battles are raging every day over corruption. These are battles to save our societies from the corrupt politicians and secret societies who are bent on taking what they want from our current wealth and from future generations without our permission. It is a battle against this crooked idealism of globalization and a One World Government of enslavement.
We must keep praying for the end to the rapid corruption and enslavement of people. We must pray for our leaders that they may be anointed by the Holy Spirit and guided to do God’s work. We must stand by them and let them know we are still there to support them, even after the election is over. I have composed a prayer maybe we can all pray today in our own way and until the reinstatement of the Iraq dinar occurs.
PRAYER
“For all leaders of all nations, that they may be anointed by the Holy Spirit to do God’s will and work to bring about abundance and prosperity to their nation. That they may listen to the Holy Spirit for guidance in fighting this war on us.
To fight this waging war on corruption, our freedoms, our liberties, socialist plans and injustice.
To bring all those corrupt to justice and pay for their crimes no matter how high up in the government or politics they are.
To end the corona virus “man-made crisis” and to awaken people everywhere of the dark side and the tools it will use to gain power and control.
That the FREE WORLD may be a shining example for the rest of the entire planet.
In the name of Jesus Christ our King and Savior, Amen”
P.S. (Please if you can – say the rosary every day. You can do it while you take your daily run or walk. You can do while you lie in bed in the morning or nighttime before sleep. You don’t even need a set of rosary beads as you can use your ten fingers ...lol..lol..lol… )
Auf Wiedersehen
Much love to ya all,
Mnt Goat
RamblerNash- GURU HUNTER
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