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Economist warns of the monetization of more Iraqi cash reserves


yota691
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Economist warns of the monetization of more Iraqi cash reserves

By by admin 23/04/2017 11:58 | Views

 
Economist warns of the monetization of more Iraqi cash reserves

 

And Baghdad

 

Warned the economic analyst Malath al-Amin of "liquidating further amounts of cash reserve deposited with the Central Bank."

 

"The need to implement rational economic plans and rely on investment to stimulate income-generating sectors, reduce unemployment and be able to repay international loans without prejudice to the cash reserve," he said in a press statement.

 

"The monetization of part of the cash reserve to fill the budget deficit has negative consequences affect the exchange of national currency and waste the rights of future generations in addition to entering the country in economic and political chaos and social not commensurate with the weight of Iraq and its civilizational and global position of the reserves of oil reserves exceeds 150 billion Barrel ", adding that" the amounts of cash reserves in the Central Bank and according to the Finance Committee Nabiip slightly more than 40 billion dollars after it was close to $ 59 billion before the fall of oil prices in 2014 and the entry of Iraq in a war with gangs and support the terrorist and expelled from areas that control On In addition to the relief of nearly 4 million displaced people. "

 

He added that "Iraq, according to concrete indicators, is nearing the achievement of a decisive victory over the terrorist challenge and the expulsion of gangs urging its territory to start a new page to close the page of the continuous depletion of its budget to perpetuate the fighting and liberate its cities and villages, and opens the page of reconstruction and construction and providing services and investments in the suspended sectors such as industry, agriculture, Which will move the economy and generate profits and create new jobs that erase part of the poverty rates that have increased over the past few years. "

 

"When Iraq was forced to borrow from the International Monetary Fund (IMF) after raising its credit level, it has implemented plans to enable it to repay its debts and interest in due dates, including loans to different production sectors and repayment of debts owed by the government to farmers and contractors , And enable the sectors to expand and diversify production lines to create new jobs as well as rationalize expenditures and reduce high salaries and increase taxes that do not affect the poor segments to enable the government to provide the necessary services.

 

He called on the government to "abide by plans to support the economy and develop it and provide job opportunities for the unemployed and fight corruption and benefit from Iraq's agricultural, industrial and tourism potential and seize the chances of victory over terrorism to achieve security and stability and to restore the cash reserve gradually progressed in parallel with the stability of oil prices at the level of $ 50 and the international community to help Iraq In its war against terrorism, relief for displaced people and the reconstruction of liberated cities. "

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1 hour ago, yota691 said:

The monetization of part of the cash reserve to fill the budget deficit has negative consequences affect the exchange of national currency and waste the rights of future generations

 

1 hour ago, yota691 said:

"Iraq, according to concrete indicators, is nearing the achievement of a decisive victory over the terrorist challenge and the expulsion of gangs urging its territory to start a new page

 

1 hour ago, yota691 said:

achieve security and stability and to restore the cash reserve gradually progressed in parallel with the stability of oil prices at the level of $ 50 and the international community

just some  high lights ,   3  things  too get  that dinar  too up its value !  

 

1 hour ago, yota691 said:

Warned the economic analyst Malath al-Amin

and  he is an economics  guy ...  ;)

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7 hours ago, yota691 said:

the amounts of the cash reserves in the Central Bank and according to the Finance Committee Nabiip slightly more than 40 billion dollars after it was close to $ 59 billion before the fall of oil prices

This is the reason why they don't do this:

12 minutes ago, EagleEye said:

So cut the carp already and push the easy RV (HCL) Button why don't you? ? Sheeesh....what a bunch of maroons :facepalm1:

And the cash reserves in the CBI keep falling.

Edited by Theseus
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I am probably going to get negged for saying this but let's think rationally for a moment and put our dinar aside.

There is another reason why at this time the HCL is not a good idea. The passage of the HCL is to adhere to the Iraqi Constitution in which it will have to pay its citizens money from the sale of oil. With dwindling cash reserves, national debt, and borrowing of money can Iraq really take on more debt right now? The HCL would add debt to the National Budget as it would then owe money to citizens of Iraq. Hypothetically if Iraq RV'd to $1 and sold a barrel of oil for $1. Let's say the government of Iraq needs 86 cents to operate. If Iraq were to pass the HCL button at this time, as EagleEye states, Iraq is in the red. Why? Because the Iraqi Constitution states that 30% of the proceeds of oil sold goes to its citizens. We are not including the 17% of the Kurdistan region at this time. So now the barrel of oil sold for $1 gets exchanged to IQD. This exchange is not free by any means. Since we are trying to keep this simple lets not include the exchange fee. Now Iraq has to pay its citizens 30 cents on every barrel it sells, but it can't it needs 86 cents to operate. If you subtract 86 from 1 you 14 cents left over to pay the Iraqi people. Feasibility wise, at this time it is in Iraq's best interest to not pass the HCL until they can get things under more control even though everyone wants it to happen, including myself. Iraq cannot operate under a deficit and meet all the demands it has created for itself. It is just not possible at this time.

Edited by Theseus
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27 minutes ago, Theseus said:

I am probably going to get negged for saying this but let's think rationally for a moment and put our dinar aside.

There is another reason why at this time the HCL is not a good idea. The passage of the HCL is to adhere to the Iraqi Constitution in which it will have to pay its citizens money from the sale of oil. With dwindling cash reserves, national debt, and borrowing of money can Iraq really take on more debt right now? The HCL would add debt to the National Budget as it would then owe money to citizens of Iraq. Hypothetically if Iraq RV'd to $1 and sold a barrel of oil for $1. Let's say the government of Iraq needs 86 cents to operate. If Iraq were to pass the HCL button at this time, as EagleEye states, Iraq is in the red. Why? Because the Iraqi Constitution states that 30% of the proceeds of oil sold goes to its citizens. We are not including the 17% of the Kurdistan region at this time. So now the barrel of oil sold for $1 gets exchanged to IQD. This exchange is not free by any means. Since we are trying to keep this simple lets not include the exchange fee. Now Iraq has to pay its citizens 30 cents on every barrel it sells, but it can't it needs 86 cents to operate. If you subtract 86 from 1 you 14 cents left over to pay the Iraqi people. Feasibility wise, at this time it is in Iraq's best interest to not pass the HCL until they can get things under more control even though everyone wants it to happen, including myself. Iraq cannot operate under a deficit and meet all the demands it has created for itself. It is just not possible at this time.

I hear BUT... once the HCL is passed and the Iraq people start getting their money, where do you think they are going to spend all that money?? IN IRAQ! The government will get that money back ten fold on revenue, taxes on goods, etc... They will come out ahead in the end especially once they stabilize their currency.  

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29 minutes ago, Jaygo said:

I hear BUT... once the HCL is passed and the Iraq people start getting their money, where do you think they are going to spend all that money?? IN IRAQ! The government will get that money back ten fold on revenue, taxes on goods, etc... They will come out ahead in the end especially once they stabilize their currency.  

Well, We now know your not a democrat.

I hope these people are paid retroactive for the HCL not being passed all these years.

Edited by jg1
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Theseus, no need to worry about the negs, you asked a legitimate question. There is probably so much behind the seens we do not know.  I would think they have a plan already worked out and in place. They have support of the US, other nations, IMF and WB. Funding has been in place and more support being sent over as I write this. I would think (hope) that they did the math to figure out what would be needed and how to support all of the Iraqi economy to get them out of this mess.  When this hits they will just have to tweak it along the way. 

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i understand what ur saying Theseus maliki and his goi thieves reign of corruption has set Iraq back a minimum of 8 years sadly he severely hurt the country until iraq has a free market economy (which require laws and regulations being passed) oil is what they have trading to the world in usd , iraq is rich in minerals and could be the bread basket to the middle east with their marsh land and aquifer system in past articles they have spoke about opening the New Silk Road thru its ports ect. .... its incredibly complicated and many things will have to come together at the same time but it will not happen by greed and corruption in every arena they can count on that and without a internationally traded currency they will never pump enough oil to get where they want to be ... Abadi has done well with the mess he's had we only get to see snapshots along the way of what they plan on doing ... cheers     

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23 hours ago, Jaygo said:

I hear BUT... once the HCL is passed and the Iraq people start getting their money, where do you think they are going to spend all that money?? IN IRAQ! The government will get that money back ten fold on revenue, taxes on goods, etc... They will come out ahead in the end especially once they stabilize their currency.  

Only a fraction of it will go back in the form of taxes and fees. To think all of our money we get goes back to the American government is ludicrous and if it does, I am gone from here. Canada with their healthcare system are way over taxed and here we are taxed upwards 55% or more (counting in local, state and fed). So if 30% is given to the Iraqi citizens is 30 cents every dollar, and they were to be taxed 55% of that 30 cents then approximately only 16 cents goes back to the GOI. They have to be paid the 30% first before GOI can receive it back. Also this also assumes the Federal portion of taxes were to include the whole 55% as the local and state would take their "fair share" If the GOI only took 15%  of the 30% in income tax per dollar that gives the GOI ~4.5 cents on the dollar. Still not enough to overcome the deficit shortfall of paying Iraqi citizens.  

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Economist warns of liquidating more Iraqi cash reserve

41 views View Last Updated: Monday , April 24 - 2017 14:08
Economist warns of liquidating more Iraqi cash reserve

Economic analyst warned haven secretary of the "monetization of more amounts deposited with the central bank's cash reserve.".

He expected the secretary in a press statement "near passing Iraq challenges that led to the financial and economic crisis," stressing "the need to implement good economic plans and rely on investment to stimulate the generating sectors of income and curb unemployment and being able to repay international loans without prejudice to the cash reserve."

The secretary that "the liquidation of part of the cash reserves to meet the budget deficit has negative consequences for the national currency exchange and wasted the rights of future generations as well as entering the country in economic, political and social chaos are not commensurate with the weight of Iraq and its cultural and global view of the Echtsenh of oil reserves exceed 150 billion barrel, "he said, adding that" the amount of cash reserves at the central bank, according to the Finance Committee Naabah slightly more than $ 40 billion after it was approaching $ 59 billion before the drop in oil prices in 2014 and to enter Iraq in the war with terrorist Daesh gangs and expelled from the areas of broker In addition to the nearly 4 million displaced people relief. " He added that "Iraq and by concrete indicators, nearing the completion of a brilliant victory on the terrorist challenge and expel gangs Daesh from its territory to start a new page which closes the page continued attrition of the budget to sustain the fighting and edit its towns and villages, and the page opens reconstruction and the provision of services and investment in the stalled sectors such as industry, agriculture, transport, tourism and other which will drive the economy and profits, and widely available provide new job opportunities erase part of the poverty rates that have increased over the past few years. " He said the secretary that "Iraq when he was forced to borrow from the International Monetary Fund after raising its level of credit, it deliberately to implement plans enable him to pay off debts and benefits in due dates, and within these plans to grant loans of various productive sectors and pay off the debts owed by the government by farmers and contractors and to enable the sectors to expand and diversify production lines to provide new job opportunities as well as rationalization of expenditures and reducing high salaries and increasing taxes that do not affect the poor segments to enable the government to provide the necessary services. " He called on the government to "commitment to supporting the economy and development plans and provide job opportunities for the unemployed and the fight against corruption and to take advantage of the possibilities of Iraq's agricultural, industrial and tourism and seize the opportunities of victory over terrorism to achieve security and stability and restore the reserve Alnkadialy previous reign gradually in conjunction with the stability of oil prices at $ 50 and the rush of the international community to help Iraq in its war against terrorism and aid the displaced and the reconstruction of the liberated cities. "

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