Tishwash: An expected visit of an Iraqi delegation to Washington, and the “Dinar and Dollar” file is at the forefront of the talks
Deputy Prime Minister for Economic Affairs and Foreign Minister Fuad Hussein announced, on Saturday, that he will lead a high-ranking Iraqi delegation to visit the United States on the eighth of next February.
“The delegation, which includes economic officials and from the Central Bank, will hold meetings with senior US officials in Washington to discuss the issue of the dinar and the dollar, and the economic relations between the two countries,” Hussein said in an interview with the “Rudaw” network, followed by “Al-Iqtisad News”. link
Tishwash: Parliamentary Finance calls on the government to expedite sending the budget to Parliament
Member of the Finance Committee, Jamal Koujar, called on the government to expedite sending the budget to Parliament for reading and approving its projects.
In a statement to the National Iraqi News Agency ( NINA ), Cougar said , “The delay in approving the budget reflects negatively on the Iraqi citizen, the market, and economic projects, and the government, represented by the Prime Minister and the Ministry of Finance, must complete the draft budget and send it to Parliament and the Finance Committee to complete all readings and vote on laws and return them.” to the government for implementation.
He explained: “The delay in the budget came as a result of the newness of the government, i.e. the election of a new government on 10/15 of last year, which is the timing of sending the budget to the government, as well as the problems, obstacles and political conflicts.”
And Cougar called for expediting sending the budget to parliament to be voted upon, since most of the service projects and job grades are related to it. link
Henig: IMF Director: Dollar-linked indebted countries face social tensions and devaluation of their currency in 2023
Baghdad / Obelisk: The Director-General of the International Monetary Fund, Kristalina Georgieva, expressed her concern about the state of the economy, explaining that the year 2023 may witness social tension at the global level, while the impact of tightening financial policies on employment has not yet appeared.
“We are only on January 12th and we already have (models) in Brazil, Peru, Bolivia, Colombia and the UK, all for different reasons but with very clear social tensions,” Georgieva said.
And if higher interest rates will eventually affect labor markets which is a logical consequence of the slowdown target, that could lead to additional tensions, she said.
And she added that the situation will not improve soon because of “inflation, which is still solid” and in confronting it, “the work of central banks has not ended yet,” stressing that “the crisis is most likely not over yet.”
Georgieva said that the economic slowdown is supposed to be greater in 2023 than what the fund expected in its last publications last October, but that the national labor markets “proved resistance,” considering that a “positive point.”
She added that this was mainly due to “governments moving quickly to provide financial support to the population in the face of high food and energy prices. But the available space is shrinking.
And Georgieva believed that “as long as people have jobs, even if prices are high, they consume, which helped the economy in the third quarter, especially in the states and in Europe, but we realize that the effect of tightening fiscal policies has not yet occurred.”
At the same time, the impact of raising interest rates on debtor countries will be severe, as indicated by Georgieva, whose foundation has been warning for months of the danger of turning about 60 percent of emerging and developing countries into countries suffering from sovereign debt crises.
– Inevitable global recession –
“For highly indebted countries whose issues are denominated in dollars, the effects (monetary policies) will be significant,” Georgieva said. And when added to this is the devaluation of the currency in the countries concerned, this leads to great hardships for the population.”
And I took the opportunity to remind you of the need to quickly restructure the debts of these countries, which is a topic “on which we are supposed to hold a meeting in February at the highest level, with the main creditors China, India and Saudi Arabia, as well as the private sector.” Nevertheless, the International Monetary Fund still considers that “a global recession can be avoided” even if a number of countries experience a decline in GDP, at least “if there is no additional shock,” according to Georgieva.
This is especially in the event that China does not change its current policy towards the epidemic, while an economic recovery in the country, starting in the middle of the year, will be “the main engine of global growth for the year 2023.”
And she stressed that “if they continue on their path, China will once again become a positive contributor to global growth, even if it does not reach the rates recorded so far.”
On the other hand, the director of the International Monetary Fund believed that the ability of the US economy to resist makes it possible to avoid a decline at the global level.
“What we are seeing in the United States is remarkable,” she said, noting low unemployment rates and continued consumption. “We’re also seeing a shift in spending from goods to services,” which is supporting the activity, she said.
This, she added, “makes it conceivable that the United States may escape a recession. And in the event that they suffer a technical recession, it should remain light.” LINK
Bruce [via WiserNow] what we’re hearing is that we’ve gotten a 90% chance to be notified Friday, Saturday or Sunday and a 100% chance to be notified Monday, Tuesday or Wednesday…Monday is looking very good for us as a day to be notified.
Pimpy Article: “Government movement to complete the requirements for Iraq’s accession to the World Trade Organization” This is a biggie…this is going to affect their currency in a positive way because now they are going to be a much bigger player on the International scene. This also allows them certain privileges especially ones that affect their exchange rate…looks like they’re getting ready to finalize, at least this next stage they want to complete by this year. The future for Iraq is looking really good. It really is.
STANDARD AND POORS WARNS: “GLOBAL DEBT SITUATION IS NOT SUSTAINABLE.”
Greg Mannarino: 1-13-2023