Samson: The Central Bank of Iraq decides to postpone the payment of loan installments for a period of three months
21st March, 2020
The Governor of the Central Bank of Iraq, Ali Al-Alaq, announced that the loan installments were postponed for a period of three months due to the crisis that Iraq is currently going through
Al-Alaq said in a press statement received by “Al-Iqtisad News”, that “in light of the circumstances the country is going through, and for the purpose of relieving the financial burdens on clients with the banking system, the Central Bank decided to postpone the payment of the premiums from the beneficiaries of its initiatives to support small and medium-sized projects (two initiatives And five trillion dinars) for a period of three months, including real estate bank and housing fund loans funded by the central bank, and that the postponement does not result in any increase in interest
He added that the Central Bank is continuing its consultations with the various bank departments for the purpose of taking appropriate measures from them regarding other types of loans LINK
Samson: An economist explains the possibility of Iraq to maintain the dollar exchange rate
09:05 – 22/03/2020
On Sunday, economist Dr. Safwan Qusai said that the central bank has reserves that enable it to maintain the dollar exchange rate for a certain period, pointing out that the demand will be greater on the dollar if the world cannot control the Corona virus in the second quarter of this year.
Qusai said in a statement to the “information”, that “the monetary policy controls the exchange rate of the dollar and the banks were not affected by the operations of pumping Iraqi cash or foreign currency.”
He added that “Iraq’s revenues decreased due to the low price of oil, and it was possible to witness the inability of the Ministry of Finance and the Central Bank to finance the amount of dollars required in the local environment, but not for the current period.”
And that “Iraq, in the event that there is no decline in the Corona virus in the second quarter of this year, it is possible that there will be an increase in the level of demand for the dollar in Iraq and the world.”
He explained that “the dollar may be a safe haven for the world, especially with the drop in the price of shares due to the decline in the level of production, causing the decline in the level of profits and all things are declining except for gold, which is the least loss.”
He stressed that “the central bank has reserves that enable it to maintain stability at dollar prices, but for a certain period.” LINK
DELTA: GREAT POST SUPER SAMSON……..
Samson: Iraq announces the extension of the curfew and the suspension of working hours until next Saturday
22nd March, 2020
The government crisis cell in Iraq decided to extend the curfew and suspend working hours until 11:00 pm next Saturday, 28 March.
And the statement issued by the crisis cell issued on Sunday, to continue the suspension of flights until the evening of next Saturday and to re-evaluate the situation according to the epidemiological situation.
The statement also stated that continuing to disable the permanence of educational and educational institutions until next Saturday evening, provided that the security, health, service, diplomats and media cadres are excluded from the curfew, and that the employees of the Ministry of Finance and the accounting and budget departments and government banks are excluded from the curfew.
The cell asked the Ministry of Finance to transfer $ 50 million in allocations from the Ministry of Health for use in purchasing prevention and treatment kits. The Municipality of Baghdad and the municipal departments in the provinces also demanded that the levies be stopped, and that the time of the Corona crisis be considered a force majeure for all projects and contracts, starting from February 20. LINK
Samson: BROUGHT FORWARD FROM THE 18TH MARCH THREAD – POST 90 – THIS TIES INTO WHAT FRANK SHARED ON LAST NIGHT”S YOUTUBE…
Fed Aims to Keep Dollars Flowing Globally in Nine New Agreements
19th March, 2020
The Federal Reserve opened currency swap lines, which help foreign central banks to keep dollar funding flowing, with nine nations.
19th March, 2020
The Federal Reserve said it would extend currency swap lines to nine additional countries, an attempt to keep dollars flowing to banks around the world as the coronavirus disrupts every aspect of business, creating a cash crunch in many nations.
The Fed opened currency swaps with central banks in Singapore, South Korea, Brazil, Sweden, Australia, New Zealand, Mexico, Norway and Denmark, the Fed said in a Thursday morning release.
The Fed has a history of using so-called “swap lines” to help foreign central banks deliver U.S. dollar funding to financial institutions in their regions amid market stress. Such agreements were used extensively during the financial crisis. Indeed, the newly extended swap lines are with the same countries the Fed struck such agreements with during the 2008 financial crisis.
The Fed has standing swap lines with partners including the Bank of Canada, the Bank of England, the European Central Bank, the Bank of Japan, and the Swiss National Bank, and it sweetened the terms on those programs on March 15 to encourage their use.
Because of the importance of the U.S. dollar in the global economy, strains in the markets for borrowing and lending dollars overseas can disrupt financial conditions here in the United States,” Jerome H. Powell, the Fed chair, said in a news conference after that decision.
Swaps work through two transactions: A foreign central bank first sells its currency to the Fed in exchange for dollars. The foreign central bank is then obligated to buy back its currency on a specified date at the same exchange rate, with interest.
The dollar is in many ways the world’s currency. Banks overseas have some $13 trillion in dollar-denominated assets. Because banks abroad operate so heavily in dollars, they may need access to dollar-based credit to weather a shock.
“These facilities, like those already established between the Federal Reserve and other central banks, are designed to help lessen strains in global U.S. dollar funding markets,” the Fed’s Thursday release said of its new agreements. LINK
Clare: PLEASE ……DO NOT MISS LAST NIGHT’S YOUTUBE! THERE IS SO MUCH VALUABLE INFO IN IT…IMO. MAKE SURE YOU WATCH FROM BEGINNING TO END… WALKINGSTICK CALLED FRANK AT THE END, AND AFTER WS, FRANK RECEIVED MORE INFO FROM ANOTHER TEAM SOURCE…AND OF COURSE, THERE IS MORE COMING! BLESSINGS & PROTECTION TO ALL…. BE PREPARED…BE SAFE…BE WISE!
Frank26: 3-21-20. Q&A: VIDEO LINK
This video is in Frank’s opinion
1. Security and Stability 2. Stop using the dollar 3. Stop the auctions….. SUDDENLY.
1: Security and Stability…..We got it
2: Stop using the US dollar…..They did it
3: Stop the Auctions….. They did it
EXCITING WEEK AHEAD
The CBI showed us they modified the money moved to outside banks on their statistics site that support there was a currency swap alright and at the same time as the UST told us about the first tranches for bank liquidity. imo
There is no coincidences any more.! There is significant data that the sweetened pot per the FED has the implications of a very well placed and timed currency swaps.. They are just not pointedly saying it aloud the way we want to hear it.. They can’t yet.. It appears the UST and Congress by what we are seeing is them hammering things out before the final shoe is thrown!!
Did you all notice how the drops in markets share pricing around the world percentage wise is fairly consistent in amounts across many fronts? Not a normal behavior.. Unless this was a demonstrable event cloaked under a guise or circumstance that arose to be a front for something far larger in the over all scheme of things. Don’t get me wrong a crisis is a crisis sadly, however, there is a view to some that one shouldn’t let a good crises go to waist!!
The amounts of money being thrown around are staggering if you think about it. But, interestingly enough the amounts are doable. For example the 1.5 trillion USD for liquidity sake to banks by the Fed alongside the CBI moving 1.047 trillion IQD have a ratio of about 1.43.. Keep in mind currency swaps have time, exchange rate and interest rate to consider. Iraq buys dollars with IQD and over time buys back this same Dinar at the same exchange rate as today but with interest.. So if Iraq during the time of the swap period re in states an international rate that is double or triple the ratio above for instance, they still by back at the original ratio with interest only added..
It is fairly simple and does loads of good imo!! All geared for shoring up markets and Iraq as a whole during the crises of virus and low oil, etc.. aimo!! – MM
Treasury Secretary Steven Mnuchin expressed confidence in the future of the U.S. economy Sunday, and was optimistic about lawmakers’ ability to move forward with a stimulus plan to help Americans deal with the coronavirus outbreak.
Mnuchin is set to meet Sunday with House Speaker Nancy Pelosi, House Minority Leader Rep. Kevin McCarthy, D-Calif., Senate Majority Leader Mitch McConnell, R-Ky., and Senate Minority Leader Chuck Schumer, D-N.Y., to discuss a relief package expected to top $1 trillion.
“I think we have a fundamental understanding and we look forward to wrapping it up today,” Mnuchin told “Fox News Sunday.”
Mnuchin explained various aspects of the legislation that lawmakers are currently working on. The first is what he called “small business retention loans,” which he said would give small businesses two weeks of cash flow to pay employees.
“You need to retain them. You’ll also get some overhead. And if you do that, those loans will be forgiven,” Mnuchin said. “That will allow small businesses to keep people, and make sure when we open up the economy, they’re up and running.”
He also said that the government will provide direct deposits, with an average family of four receiving approximately $3,000, as well as “enhanced unemployment insurance” for those laid off due to the outbreak.
The fourth part, Mnuchin said, is “a significant package working with the federal reserve, which will provide “up to $4 trillion of liquidity that we can use to support the economy.”
Mnuchin said the plan is meant to deal with “a 10-to-12-week scenario,” but that they are prepared to do more if it lasts longer.
For the long term, Mnuchin maintained confidence, saying he expects a full economic recovery from the outbreak once it has passed.
“The U.S. economy is strong. We’ve stopped major parts of it, but when we get through this virus, as I’ve said, I think you’re gonna see the U.S. economy come back to the strength, we have great companies, we have great workers,” he said. “What we need to do is have a bridge to get through this. And this isn’t the financial crisis that’s gonna go on for years.”
McConnell announced late Saturday all sides were “very close” to a bipartisan resolution, and the Senate is expected to hold a procedural vote on a bill Sunday afternoon.
A spokesman for Senate Democratic leader Chuck Schumer said Saturday there was “not yet an agreement,” but spokesman Justin Goodman said Democrats look forward to reading the draft and further negotiations.
The House and Senate already passed a bipartisan $8.3 billion package to prop up the health care system to prepare for the influx of sick Americans. The second response bill that was signed into law Wednesday aims to bring relief to workers who lost their jobs and families at home for illnesses, quarantines or caring for kids whose schools have shuttered.
“Everybody’s working hard and they want to get to a solution that’s the right solution; I think we’re very close,” President Trump said at a Saturday press briefing, striking a confident tone about the nation’s ability to defeat the pandemic soon.