DELTA: Parliamentary Finance: The 2020 budget includes the payment of the last payment of Kuwait’s debts
12th January, 2020
Revealed a member of the Parliamentary Finance Committee Hanin Qaddu, today, Sunday, that this year’s budget will include the payment of the last payment of debts owed by the Iraqi government to Kuwait, amounting to $ 2 billion.
Qaddo said in a radio statement that was followed by / Mawazine News, that “the total amounts of the Iraqi budget for the year 2020 amount to fifty trillion Iraqi dinars, (wink) which are distributed between the salaries of the ruling expenditures such as the ration card and the wages of other cases.”
He explained, “The total debt owed by Iraq amounts to $ 28 billion, indicating that Iraq seeks to delay the payment of its debts to the Gulf countries or go to the Paris Club to reduce them to 40%.” LINK
MilitiaMan: Good eye Delta, that is a big change from the total 160 – 165 Trillion of the past If I re call. Hmm Drop the Zeros, and it is in billions, just as they said their goal was if I recall that right.!! ~ MM
Don961: The Central Bank of Iraq considered, on Sunday, that it is “a mistake” to bet on the high exchange rate of the dollar, noting that exaggeration in the potential effects of the sanctions does not exist.
Posted 4 hours ago
“It is a mistake to bet on the rise of the dollar because it will end with an increase in supply and the coming days will witness that with the positive reaction of the bank to cover all requests,” Mahmoud Mahmoud Dagher, Director General of the Financial Operations and Debt Management Department of the bank, said in an interview with Alsumaria News.
Dagher pointed out that “the bank also sold additional amounts of dollars to the dollar, expanded the outlets and took exceptional measures as part of monetary policy in such events.”
He added, “The process of exaggerating the potential effects or exaggerating something called sanctions does not exist at all in the bank’s dealing model”, stressing that “the bank will continue sales through the banking system, banking companies and government banks in the sale of additional sums whenever possible and we will follow the market movement.”
It is noteworthy that the local market witnessed during the past week a slight rise in the exchange rates of the dollar against the Iraqi dinar, after it was stable and for long periods at 1221 dinars per thousand dollars. link
MilitiaMan: The CBI telling the citizens to not bet on the rise in the dollar, whereby, a decrease in IQD would be the reciprocal of that. Be careful, as the threat of sanctions is exaggerated.
Since Thursday they have been rolling out education articles to the citizens explaining the pros and cons of what the CBI and banks are discussing and giving detailed explanations for their actions and reactions. This warning is a clear signal to those that are trading in country with the dollar.
There could be significant risk associated with buying and selling the dollar. Going long the Dollar whereby them having told the citizens they reform map is underway could bring an overnight value for or of the IQD. The IQD being re instated / or rising could be a very painful trade. imo..
Hence, the warning to those that are and have been betting on the Dollar. The CBI ceases dollar trade (MCP’s)? One could have even more problems. imo ~ MM
Don961: The Finance Committee, headed by Deputy Dr. Haitham Al-Jubouri, announced on Friday that it hosted the governor of the Central Bank, the head of the Financial Supervision Bureau, the Director General of the Budget Department at the Ministry of Finance and the Assistant Director General of the Iraqi Trade Bank ( TBI) .
A statement mentioned by the committee received by ( Iraqi Media News Agency / INA ) hosted the governor of the Central Bank, the head of the Financial Supervision Bureau, the director general of the budget department in the Ministry of Finance and the assistant general manager of the Iraqi Trade Bank TBI .
He added that the meeting discussed the current events in light of the military escalation taking place in the region and its effects on the financial situation of the country and the monetary policy that must be followed to control the exchange rate of the currency in the Iraqi market.
The financial committee heard the presentation of the guests after they provided a detailed explanation of the mechanisms that must be followed to preserve Iraqi money inside and outside Iraq.
And between the Governor of the Central Bank that Iraq’s debts were scheduled and paid at the specified times, stressing at the same time that the political positions of Iraq affect, of course, its financial position, whether negatively or positively, and that follows the type of position and the consequent reaction.
The Finance Committee stressed that it seeks to permanently stave off danger from Iraqi money and correct its monetary policy path in light of the tension in the region and spare the country to fall into a deadlock that negatively affects its economy and development. LINK
MilitiaMan: This one is supporting the above that they have a vision to support the Dinar inside and out of Iraq. That means they have Article 8 on the mind.. To trade the defend their currency inside and outside is the key.. They education process and the warning on betting on the USD is not a good idea. To be international the Multi Currency Practice’s in country will cease once they raise the rate to be internationally compliant under Article 8. They’ll only be able to use the DINAR for local trade just as we in the USA don’t accept the Peso or the Canadian Dollar. They’ll not be allowed to use Dollar only Dinar.. Hence the justification of the warning.. imo ~ MM
Don961: Parallel market noise
Sunday January 12, 2020
Mohammed Sharif Abu Maysam
We used to exploit speculators in the parallel market for the crises in the country, and they were able to reap significant profits in the market of buying and selling the US dollar during the crisis, which still casts its repercussions on the overall scene in the country, taking advantage of international rumors and hints from one side or the other regarding the occurrence of war in the region Or the threat of the blockade, which led to more demand for the dollar as a safe haven for hoarding the monetary value of the local currency, which led to unprecedented rises in the exchange rate, since the price of the dinar against the US dollar witnessed monetary stability in June 2018 Successful friendly followed by the central bank’s proactive manner sales in the financing of foreign trade and domestic demand.
Perhaps the decrease in political and security tension in the region may be a reason for the easing of the noise made by speculators, but the central bank continued to hold auction sessions selling the dollar at the official price, and its official affirmation of its ability to cover domestic demand for many years due to its possession of large foreign currency reserves, shares Mainly to build public confidence in the movement of the market and the inability of speculators to make more price bubbles.
This matter did not come from a vacuum, but rather from a policy that adopted disclosure and transparency for years in announcing the activities of monetary policy and foreign exchange reserves continuously, the most recent of which was the announcement of a rise in foreign currency reserves to about 87 billion dollars last September,
which makes the ability of the central to achieve Monetary stability at its highest level, and therefore this policy has had a major role in reducing the levels of noise created by speculators, and the lack of continued unjustified demand, and restoring confidence in the local currency.
It is now useful to review the role of all rings related to the domestic demand for the US dollar, to devote the features of success in this policy, and to develop new mechanisms that support the banking sector, brokerage and financial transfer companies and banking offices, which had a positive role in maintaining the policy of monetary stability during the crisis, and identifying Weaknesses in these formations that have benefited from the crisis at the expense of the public interest towards addressing them, with the aim of reaching the level of confidence in the national currency and creating a stable monetary environment that contributes to achieving development and attracting foreign investment. LINK
MilitiaMan: Read the last paragraph closely. The contribution to achieving development and attracting foreign investment. They don’t attract much in the form of foreign investment at a program rate.
The recent meetings at the CBI this week have clearly shown they are moving on with their monetary reform road map and that is to get reconstruction underway.
The China deal with 100,000 barrels day to provide exactly that was just inked the other day.. See below. I am fairly sure they are telling us they are effectively ready to get the show on the road..
Will the UST, WB, IMF, BIS and WTO be looking for them to do so? I would say absolutely they are.. It is all about the money, jobs, etc.. imo ! ~ MM