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The Finance Committee reveals the mechanism for paying Iraqi debts .. And the Central reveals its policy to control the exchange rate


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  • yota691 changed the title to The Finance Committee reveals the mechanism for paying Iraqi debts .. And the Central reveals its policy to control the exchange rate
4 hours ago, KDuesing said:

Sorry but I cant get excited by this, I've been watching them to long, its like when things are complete crap lets throw out a Central Bank article to keep those investors happy and pumped up, meanwhile the Iranian loving government is still sitting in parliament.

Thank you,,  this is what I have been seeing too. Yup crap happens and then all of the sudden an article comes out from Central Bank and everyone is back in their happy place.  

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13 hours ago, DinarThug said:


Here’s One In Crayons Bro ! :o 

 

:D  :D  :D 

 

 

 

 

The finance comittee reveals the mechanism for paying Iraqi debts .. And the Central reveals its policy to control the exchange rate

 

Baghdad / Obelisk: The Parliamentary Finance Committee announced, Thursday, January 9, 2020, a discussion of the mechanisms that must be followed to preserve Iraqi money, pay debts, and the financial situation in light of the tension in the region, during its hosting of the governor of the Central Bank and the Ministry of Finance and the head of the Financial Supervision Bureau.

A statement to the committee said that it 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 director general of the Iraqi Trade Bank, TBI , to “discuss 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 statement added, "The Finance Committee heard the guests' presentation after they provided a detailed explanation of the mechanisms that must be followed to preserve Iraqi money inside and outside Iraq."

He continued, "The Governor of the Central Bank indicated 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 confirmed at the conclusion of the statement, it "seeks to permanently stave off danger from Iraqi money and correct the course of its monetary policy in light of the tension in the region and spare the country to fall into a deadlock that negatively affects its economy and development."

 
http://almasalah.com/ar/news/1.....الصرف

 

 

excellent article and yet all doom and glom for some...

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13 hours ago, DinarThug said:


Here’s One In Crayons Bro ! :o 

 

:D  :D  :D 

 

 

 

 

The finance comittee reveals the mechanism for paying Iraqi debts .. And the Central reveals its policy to control the exchange rate

 

Baghdad / Obelisk: The Parliamentary Finance Committee announced, Thursday, January 9, 2020, a discussion of the mechanisms that must be followed to preserve Iraqi money, pay debts, and the financial situation in light of the tension in the region, during its hosting of the governor of the Central Bank and the Ministry of Finance and the head of the Financial Supervision Bureau.

A statement to the committee said that it 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 director general of the Iraqi Trade Bank, TBI , to “discuss 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 statement added, "The Finance Committee heard the guests' presentation after they provided a detailed explanation of the mechanisms that must be followed to preserve Iraqi money inside and outside Iraq."

He continued, "The Governor of the Central Bank indicated 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 confirmed at the conclusion of the statement, it "seeks to permanently stave off danger from Iraqi money and correct the course of its monetary policy in light of the tension in the region and spare the country to fall into a deadlock that negatively affects its economy and development."

 
http://almasalah.com/ar/news/1.....الصرف

 

 

I think this article is simply addressing why the dinars value fell slightly lately and out of the 2% range due to the Iran / US conflict. I doubt this really has anything to do with what we seek..

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38 minutes ago, GregHi said:

I think this article is simply addressing why the dinars value fell slightly lately and out of the 2% range due to the Iran / US conflict. I doubt this really has anything to do with what we seek..


Fun Sucker!

:cigar:
 

:D:D:D

 

Thanks. 

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1 hour ago, GregHi said:

I think this article is simply addressing why the dinars value fell slightly lately and out of the 2% range due to the Iran / US conflict. I doubt this really has anything to do with what we seek..

Agreed. Been here too long to get excited about 1 good article. 

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January 10, 2020

 

Baghdad Post

 

 

Parliamentary Economy: Iraqi dollars are smuggled out of the country through fake companies

 

The Parliamentary Economy and Investment Committee confirmed today, Friday, that the central bank sells large amounts of dollars per day in order to control the exchange rate, pointing out that the dollar is fleeing outside the country through companies and fake connections. 
Committee member Nada Shaker said in a statement, "The central bank possesses large amounts of dollars in dollars and sells huge amounts of currency daily, despite the current state of tension in the country." 
She added that "the high dollar exchange rate in the local market does not have any justification, especially since the central bank controls the sale of the dollar." 
And indicated that "the financial market of the Central Bank sells large amounts of dollars daily, but these funds fall within the category of corruption, where there are a lot of fictitious receipts and companies that do not exist, and therefore there is a leak and smuggling of hard currency outside the country." 

https://m.thebaghdadpost.com/ar/Story/186526/الاقتصاد-النيابية-دولارات-العراق-تهرب-خارج-البلاد-عن-طريق-شركات-وهمية

 

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2323.jpg?resize=500%2C375&ssl=1

Politics Ibrahim Al-Sumaida’i released today, Tuesday, a schedule that he said relates to Iraq's foreign bonds.

Al-Sumaidaie wrote: After an initial rise in the dollar exchange rate, the Iraqi government’s external debt bonds lose more than 5% of their value during Thursday and Friday only.

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Monday 07 January 2020

An overview of the history of Iraq's sovereign debt

5d7c56ebd594e.jpg

The history of Iraqi debt in general and external to it in particular is a sad and dark fact in the modern economic history of Iraq. For the past four decades, government debt has remained far from its philosophy of borrowing in order to invest in development and achieve economic prosperity by virtue of the exceptional circumstances and political factors.

In the last decade of the 1980s, during the war with Iran, external borrowing was used to finance the deadly war machine, which is a fatal and odious consumer debt, accompanied by internal borrowing for the same consumer spending purpose. In the year 2004, the Paris Club Secretariat estimated the external debt of Iraq for the pre-1990 stage at about $ 128 billion, at which time it was decided to write off 80% of it under the Paris Club Agreement.

That agreement was based on Security Council Resolution 1483 in May 2003 regarding the settlement of Iraq's external debt to its creditors. As debts accumulated before the year 1990 due to interruption of payments and the inability to pay and the application of the terms of the debt agreements formally signed with the various creditors, whether sovereign ones that belong to the group of the Paris Club nineteen or to the official creditors from the group of 54 countries creditor to Iraq from outside the Paris Club group, as well From thousands of commercial creditors. What the bilateral debt agreements have shown with the creditor parties has indicated decisions to pay the accumulated interest, whether on the level of the principal or accepting the delay in interest (PDI) and according to the provisions of the contract on the debt, most of which are formally signed with the creditor parties in the eighties of the last century.

During the 1990s siege and the international sanctions imposed on Iraq resulting from the Kuwait war and the consequences of its invasion, the issue of debt and its burdens took two different paths. First, domestic borrowing has been going heavily for the sake of public spending within monetary tools and playing the budget deficit financing game with inflationary financing, or the debt monetization game that provides sustainability to the fragile reality in the budgets of the economic blockade and its time to run the machine of the economic system.

The real income of the Iraqi individual has been confiscated through the use of the so-called (the principle of automatic confiscation of individuals ’savings and their potential surpluses and their absorption in advance of waves of inflation and inflationary expectations generated by public spending funded by the cash issue or by inflation). It is an automatic alienation mechanism based on the permanence of replacing government debt instruments (annual treasury transfers) issued by the Ministry of Finance with cash issued to be automatically accepted in the balance sheet of the Central Bank of Iraq. Hence, it was adopted as bad assets that are not subject to extinguishing at that time in the formation of the monetary base.

As for the second track, which is the implementation of the agreement with the United Nations, after the international organization has harnessed a third of the Iraqi oil revenues exported through the Memorandum of Understanding or the "Oil for Food and Medicine" program. Work was started on that rescue note in the year 1996, in order to pay (external compensation) to Victims of the war in Kuwait through the United Nations Compensation Fund UNCC and their various stripes and their countries and institutions that have been countless and with a compensation amount in excess of $ 52 billion. Note that compensation is not debt, but sanctions imposed by UN resolutions, including covering the costs of inspection teams and collecting them from the revenues of the oil memorandum of understanding.

The international organization has kept Iraqi oil revenues in an account in the name of the Secretary-General of the United Nations within the arrangements for Chapter Seven of the Charter of the International Organization.

Currently, only $ 3 billion of the amounts of these Kuwaiti awards are left. As the other new stage in the economic life of Iraq and the development of its debts started from the beginning of the third millennium, and specifically the stage of the great political transformation in the year 2003 until the present time, Iraq has not resorted to any borrowings of little importance. However, after the end of a decade of political transition, our country suddenly was exposed to two suffocating crises (security and financial) in the year 2014 that extended until the year 2017, which launched the wheel of operational loans to take their ranges again. Most of the internal and external borrowing went this time to support the operational budget in a way that secures the sustainability of current budget payments, especially of salaries, wages and other obligations, as well as reassuring the war front against terrorism after the price of crude oil fell from $ 80 a barrel to less than $ 30 a barrel. If we take the cost of producing the crude oil that is serviced by the international oil companies, IOCs, then the net return of the barrel from the exported crude oil will be 20 dollars at that time, and that salaries, wages and pensions are designed on a barrel of oil whose revenue is not less than 80 dollars.

Thus the external debt came this time, mainly related to arms purchases, equipping, and rebuilding the armed forces to counter ISIS terrorism, a trend at the end of which has a highly consuming nature in operating the war machine and tools, which were required by the priorities of liberating the land.

It is noted that half of the foreign debts generated by the aforementioned (financial and security) crises after 2014 (especially foreign loans from the seven major countries that were based on the pledges made by those countries in the May 2016 statement in Tokyo to support Iraq in its war against terrorism, as well as Credits provided by the international multilateral financial institutions such as the World Bank and the International Monetary Fund, which totaled up to about $ 12 billion over today) have spent more than half or perhaps most of them in support of the operational budget between the years 2017-2015.

Based on the foregoing, the history of Iraqi indebtedness and through multiple and different decades of time has been closely linked to government consumer spending due to wars, conflicts, blockades, crises and corruption at a rate of 90%, and the burden of consumer debt may have been offset on the other side of the debt, albeit in a limited way, by correlation Some are funded by income-generating development projects. However, loan-executed projects have also remained marginal in impacting the country's economic growth and significant economic transformation.

Thus, over four decades of the economic life of Iraq, the development debts associated with the state investment projects did not constitute only 10% of the total Iraqi sovereign debt. As Iraqi oil resources continued to operate as a sustainable financial leverage in the service of unproductive consumer debt, after which the country also recorded four consecutive decades of lost development. For example, the expenditures of grants, international aid, and soft loans (or where the grant element represents a high percentage) that were spent on the Iraqi investment and infrastructure sector between the years 2013-2003 are about $ 94 billion. On its part, Iraq participated in the disbursement of $ 126 billion, meaning that the total actual expenditures on the government investment sector during the past ten years amounted to $ 220 billion! The result is that the country still has more than 8,000 school buildings and that 3.5 million people live in slums around unscathed cities (and lack sanitation, water, and law enforcement services) until all of us have shabby parts of infrastructure.

In spite of the foregoing, the macroeconomic situation of Iraq, whether visible or latent, still shows sustainability in the country's financial and economic strength, backed by adequate foreign cash flows to pay and the ability to maintain and sustain the debt service, which made the total current debts of Iraq (internal and external) as a percentage of The gross domestic product does not exceed 49.7%, at $ 115 billion, according to what is indicated in the indebtedness tables in 2019, and this percentage will decrease to 48.6% in the year 2020, despite the rise of those debts slightly (in absolute value) and according to expectations due to conditions Financing the federal budget 2020 and the Where shear is expected, it will help if high GDP (from $ 235 billion in 2019 to $ 254 billion in 2020) to provide an effective weight will stand behind the decline in the standard ratio of the Iraqi debt in 2020. Accordingly, the indebtedness rates will go downward towards or towards the safe limits of debt sustainability or less risky debt sustainability, so Iraqi debt is still safe and far from even the maximum circle of the international standard in determining acceptable ends of debt as a percentage of GDP and in a manner not exceeding 60% ؜.

In conclusion, Iraq will have, from today, an appropriate fiscal space space that touches with its reference the expectations of international creditors and capital markets in a positive way so that public debt management and fulfill its service obligations at a more reassuring level can be fulfilled.

* Researcher, academic economist and former deputy governor of the Central Bank

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1 hour ago, 6ly410 said:
onday 07 January 2020

An overview of the history of Iraq's sovereign debt

5d7c56ebd594e.jpg

The history of Iraqi debt in general and external to it in particular is a sad and dark fact in the modern economic history of Iraq. For the past four decades, government debt has remained far from its philosophy of borrowing in order to invest in development and achieve economic prosperity by virtue of the exceptional circumstances and political factors.

In the last decade of the 1980s, during the war with Iran, external borrowing was used to finance the deadly war machine, which is a fatal and odious consumer debt, accompanied by internal borrowing for the same consumer spending purpose. In the year 2004, the Paris Club Secretariat estimated the external debt of Iraq for the pre-1990 stage at about $ 128 billion, at which time it was decided to write off 80% of it under the Paris Club Agreement.

That agreement was based on Security Council Resolution 1483 in May 2003 regarding the settlement of Iraq's external debt to its creditors. As debts accumulated before the year 1990 due to interruption of payments and the inability to pay and the application of the terms of the debt agreements formally signed with the various creditors, whether sovereign ones that belong to the group of the Paris Club nineteen or to the official creditors from the group of 54 countries creditor to Iraq from outside the Paris Club group, as well From thousands of commercial creditors. What the bilateral debt agreements have shown with the creditor parties has indicated decisions to pay the accumulated interest, whether on the level of the principal or accepting the delay in interest (PDI) and according to the provisions of the contract on the debt, most of which are formally signed with the creditor parties in the eighties of the last century.

During the 1990s siege and the international sanctions imposed on Iraq resulting from the Kuwait war and the consequences of its invasion, the issue of debt and its burdens took two different paths. First, domestic borrowing has been going heavily for the sake of public spending within monetary tools and playing the budget deficit financing game with inflationary financing, or the debt monetization game that provides sustainability to the fragile reality in the budgets of the economic blockade and its time to run the machine of the economic system.

The real income of the Iraqi individual has been confiscated through the use of the so-called (the principle of automatic confiscation of individuals ’savings and their potential surpluses and their absorption in advance of waves of inflation and inflationary expectations generated by public spending funded by the cash issue or by inflation). It is an automatic alienation mechanism based on the permanence of replacing government debt instruments (annual treasury transfers) issued by the Ministry of Finance with cash issued to be automatically accepted in the balance sheet of the Central Bank of Iraq. Hence, it was adopted as bad assets that are not subject to extinguishing at that time in the formation of the monetary base.

As for the second track, which is the implementation of the agreement with the United Nations, after the international organization has harnessed a third of the Iraqi oil revenues exported through the Memorandum of Understanding or the "Oil for Food and Medicine" program. Work was started on that rescue note in the year 1996, in order to pay (external compensation) to Victims of the war in Kuwait through the United Nations Compensation Fund UNCC and their various stripes and their countries and institutions that have been countless and with a compensation amount in excess of $ 52 billion. Note that compensation is not debt, but sanctions imposed by UN resolutions, including covering the costs of inspection teams and collecting them from the revenues of the oil memorandum of understanding.

The international organization has kept Iraqi oil revenues in an account in the name of the Secretary-General of the United Nations within the arrangements for Chapter Seven of the Charter of the International Organization.

Currently, only $ 3 billion of the amounts of these Kuwaiti awards are left. As the other new stage in the economic life of Iraq and the development of its debts started from the beginning of the third millennium, and specifically the stage of the great political transformation in the year 2003 until the present time, Iraq has not resorted to any borrowings of little importance. However, after the end of a decade of political transition, our country suddenly was exposed to two suffocating crises (security and financial) in the year 2014 that extended until the year 2017, which launched the wheel of operational loans to take their ranges again. Most of the internal and external borrowing went this time to support system" rel="">support the operational budget in a way that secures the sustainability of current budget payments, especially of salaries, wages and other obligations, as well as reassuring the war front against terrorism after the price of crude oil fell from $ 80 a barrel to less than $ 30 a barrel. If we take the cost of producing the crude oil that is serviced by the international oil companies, IOCs, then the net return of the barrel from the exported crude oil will be 20 dollars at that time, and that salaries, wages and pensions are designed on a barrel of oil whose revenue is not less than 80 dollars.

Thus the external debt came this time, mainly related to arms purchases, equipping, and rebuilding the armed forces to counter ISIS terrorism, a trend at the end of which has a highly consuming nature in operating the war machine and tools, which were required by the priorities of liberating the land.

It is noted that half of the foreign debts generated by the aforementioned (financial and security) crises after 2014 (especially foreign loans from the seven major countries that were based on the pledges made by those countries in the May 2016 statement in Tokyo to support system" rel="">support Iraq in its war against terrorism, as well as Credits provided by the international multilateral financial institutions such as the World Bank and the International Monetary Fund, which totaled up to about $ 12 billion over today) have spent more than half or perhaps most of them in support system" rel="">support of the operational budget between the years 2017-2015.

Based on the foregoing, the history of Iraqi indebtedness and through multiple and different decades of time has been closely linked to government consumer spending due to wars, conflicts, blockades, crises and corruption at a rate of 90%, and the burden of consumer debt may have been offset on the other side of the debt, albeit in a limited way, by correlation Some are funded by income-generating development projects. However, loan-executed projects have also remained marginal in impacting the country's economic growth and significant economic transformation.

Thus, over four decades of the economic life of Iraq, the development debts associated with the state investment projects did not constitute only 10% of the total Iraqi sovereign debt. As Iraqi oil resources continued to operate as a sustainable financial leverage in the service of unproductive consumer debt, after which the country also recorded four consecutive decades of lost development. For example, the expenditures of grants, international aid, and soft loans (or where the grant element represents a high percentage) that were spent on the Iraqi investment and infrastructure sector between the years 2013-2003 are about $ 94 billion. On its part, Iraq participated in the disbursement of $ 126 billion, meaning that the total actual expenditures on the government investment sector during the past ten years amounted to $ 220 billion! The result is that the country still has more than 8,000 school buildings and that 3.5 million people live in slums around unscathed cities (and lack sanitation, water, and law enforcement services) until all of us have shabby parts of infrastructure.

In spite of the foregoing, the macroeconomic situation of Iraq, whether visible or latent, still shows sustainability in the country's financial and economic strength, backed by adequate foreign cash flows to pay and the ability to maintain and sustain the debt service, which made the total current debts of Iraq (internal and external) as a percentage of The gross domestic product does not exceed 49.7%, at $ 115 billion, according to what is indicated in the indebtedness tables in 2019, and this percentage will decrease to 48.6% in the year 2020, despite the rise of those debts slightly (in absolute value) and according to expectations due to conditions Financing the federal budget 2020 and the Where shear is expected, it will help if high GDP (from $ 235 billion in 2019 to $ 254 billion in 2020) to provide an effective weight will stand behind the decline in the standard ratio of the Iraqi debt in 2020. Accordingly, the indebtedness rates will go downward towards or towards the safe limits of debt sustainability or less risky debt sustainability, so Iraqi debt is still safe and far from even the maximum circle of the international standard in determining acceptable ends of debt as a percentage of GDP and in a manner not exceeding 60% ؜.

In conclusion, Iraq will have, from today, an appropriate fiscal space space that touches with its reference the expectations of international creditors and capital markets in a positive way so that public debt management and fulfill its service obligations at a more reassuring level can be fulfilled.

* Researcher, academic economist and former deputy governor of the Central Bank

In conclusion: RV ALREADY!!!

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Washington's economic sanctions ... Al-Tamimi reveals 4 risks and talks about debts amounting to $ 70 billion

108240.jpg?watermark=4

Economie 01/11/2020 18:54 297 Editor: 

Baghdad today - Baghdad

Member of the Finance Committee, MP Magda Al-Tamimi, revealed on Saturday 11/12020, the potential risks in the event of economic sanctions imposed on Iraq by the United States of America. Al-Tamimi said in a statement, "A meeting was held in the presence of the governor of the Central Bank and the head of the Financial Supervision Bureau and the undersecretary of the Minister of Finance, as well as the deputy general manager of the Iraqi Bank for Trade (TBi), during which he made a presentation on the government side on possible risks in the event of sanctions against Iraq by United States of America". She added, "The risks are: The possibility of stopping the supply of Iraq with the dollar, which is an easy measure to take by the United States, given that the countries have full sovereignty over their currency, and this would negatively affect the rise in the price of the dollar against the dinar, and here Iraq has no choice but to go to deal In other currencies, which will require a period not for a short period, such as the shift to dealing in the euro currency, which means entering into negotiations that are not easy with European banks such as France and Germany .... etc. "  She pointed out that "most international banks have difficult conditions and restrictions to deal with Iraq as an unstable country and have many problems and will be dealt with great caution, in addition to the transition to other currencies requires changing the commercial behavior of the country, and the question that arises is whether the country concerned has the ability to Providing Iraq with the amount of currency it will need in cash, as these countries may not have this ability to pump large amounts of cash.  She pointed out that "the United States of America may go to deny certain parties in Iraq from carrying out their activities or may issue a ban on dealing with them by most international companies because of their impact on these companies (directly or indirectly) governed by the interests of those companies, for example. A ban on dealing with certain companies specialized in the marketing of Iraqi oil. And she continued, "The other danger is the inclusion of certain entities in the ban. These entities may be (people, companies or banks) as the American Treasury provides a list of specific names to prohibit dealing with them in dollars or it may freeze their assets. Here we refer to the committee formed in the General Secretariat of the Council of Ministers Including the Deputy Governor of the Central Bank, the ban books are sent to them, and then measures must be taken against them and their names circulated. In the event that these measures are not taken, it will negatively affect the level of the international classification for Iraq by the International Financial Action Task Force FATF, as this organization is concerned with auditing the classifications. Etc. Of countries in accordance with the periodic intervals. "

 Al-Tamimi indicated, quoting what happened in the meeting, that "the fourth possibility is to submit requests by the creditor parties to pressure in order to accelerate the payment of their debts (countries or individuals) and immediately and here we point out that Iraq is owed (28) billion dollars in foreign debt except for odious debts (The debts of the Gulf states) amounting to (41) billion dollars, and according to the United Nations agreement on the immunities of states and their properties from jurisdiction in 2004, Article 21, paragraph (c) thereof, the immunity of the central bank reserve (currency cover) has been achieved. "

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21 minutes ago, yota691 said:

Washington's economic sanctions ... Al-Tamimi reveals 4 risks and talks about debts amounting to $ 70 billion

108240.jpg?watermark=4

Economie 01/11/2020 18:54 297 Editor: 

Baghdad today - Baghdad

Member of the Finance Committee, MP Magda Al-Tamimi, revealed on Saturday 11/12020, the potential risks in the event of economic sanctions imposed on Iraq by the United States of America. Al-Tamimi said in a statement, "A meeting was held in the presence of the governor of the Central Bank and the head of the Financial Supervision Bureau and the undersecretary of the Minister of Finance, as well as the deputy general manager of the Iraqi Bank for Trade (TBi), during which he made a presentation on the government side on possible risks in the event of sanctions against Iraq by United States of America". She added, "The risks are: The possibility of stopping the supply of Iraq with the dollar, which is an easy measure to take by the United States, given that the countries have full sovereignty over their currency, and this would negatively affect the rise in the price of the dollar against the dinar, and here Iraq has no choice but to go to deal In other currencies, which will require a period not for a short period, such as the shift to dealing in the euro currency, which means entering into negotiations that are not easy with European banks such as France and Germany .... etc. "  She pointed out that "most international banks have difficult conditions and restrictions to deal with Iraq as an unstable country and have many problems and will be dealt with great caution, in addition to the transition to other currencies requires changing the commercial behavior of the country, and the question that arises is whether the country concerned has the ability to Providing Iraq with the amount of currency it will need in cash, as these countries may not have this ability to pump large amounts of cash.  She pointed out that "the United States of America may go to deny certain parties in Iraq from carrying out their activities or may issue a ban on dealing with them by most international companies because of their impact on these companies (directly or indirectly) governed by the interests of those companies, for example. A ban on dealing with certain companies specialized in the marketing of Iraqi oil. And she continued, "The other danger is the inclusion of certain entities in the ban. These entities may be (people, companies or banks) as the American Treasury provides a list of specific names to prohibit dealing with them in dollars or it may freeze their assets. Here we refer to the committee formed in the General Secretariat of the Council of Ministers Including the Deputy Governor of the Central Bank, the ban books are sent to them, and then measures must be taken against them and their names circulated. In the event that these measures are not taken, it will negatively affect the level of the international classification for Iraq by the International Financial Action Task Force FATF, as this organization is concerned with auditing the classifications. Etc. Of countries in accordance with the periodic intervals. "

 Al-Tamimi indicated, quoting what happened in the meeting, that "the fourth possibility is to submit requests by the creditor parties to pressure in order to accelerate the payment of their debts (countries or individuals) and immediately and here we point out that Iraq is owed (28) billion dollars in foreign debt except for odious debts (The debts of the Gulf states) amounting to (41) billion dollars, and according to the United Nations agreement on the immunities of states and their properties from jurisdiction in 2004, Article 21, paragraph (c) thereof, the immunity of the central bank reserve (currency cover) has been achieved. "

 

This woman makes the perfect case for revaluing the Dinar.  I hope they listen to her.  It looks like Trump has them over a barrel.

 

" The possibility of stopping the supply of Iraq with the dollar, which is an easy measure to take by the United States" 

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2 hours ago, yota691 said:

Washington's economic sanctions ... Al-Tamimi reveals 4 risks and talks about debts amounting to $ 70 billion

108240.jpg?watermark=4

Economie 01/11/2020 18:54 297 Editor: 

Baghdad today - Baghdad

Member of the Finance Committee, MP Magda Al-Tamimi, revealed on Saturday 11/12020, the potential risks in the event of economic sanctions imposed on Iraq by the United States of America. Al-Tamimi said in a statement, "A meeting was held in the presence of the governor of the Central Bank and the head of the Financial Supervision Bureau and the undersecretary of the Minister of Finance, as well as the deputy general manager of the Iraqi Bank for Trade (TBi), during which he made a presentation on the government side on possible risks in the event of sanctions against Iraq by United States of America". She added, "The risks are: The possibility of stopping the supply of Iraq with the dollar, which is an easy measure to take by the United States, given that the countries have full sovereignty over their currency, and this would negatively affect the rise in the price of the dollar against the dinar, and here Iraq has no choice but to go to deal In other currencies, which will require a period not for a short period, such as the shift to dealing in the euro currency, which means entering into negotiations that are not easy with European banks such as France and Germany .... etc. "  She pointed out that "most international banks have difficult conditions and restrictions to deal with Iraq as an unstable country and have many problems and will be dealt with great caution, in addition to the transition to other currencies requires changing the commercial behavior of the country, and the question that arises is whether the country concerned has the ability to Providing Iraq with the amount of currency it will need in cash, as these countries may not have this ability to pump large amounts of cash.  She pointed out that "the United States of America may go to deny certain parties in Iraq from carrying out their activities or may issue a ban on dealing with them by most international companies because of their impact on these companies (directly or indirectly) governed by the interests of those companies, for example. A ban on dealing with certain companies specialized in the marketing of Iraqi oil. And she continued, "The other danger is the inclusion of certain entities in the ban. These entities may be (people, companies or banks) as the American Treasury provides a list of specific names to prohibit dealing with them in dollars or it may freeze their assets. Here we refer to the committee formed in the General Secretariat of the Council of Ministers Including the Deputy Governor of the Central Bank, the ban books are sent to them, and then measures must be taken against them and their names circulated. In the event that these measures are not taken, it will negatively affect the level of the international classification for Iraq by the International Financial Action Task Force FATF, as this organization is concerned with auditing the classifications. Etc. Of countries in accordance with the periodic intervals. "

 Al-Tamimi indicated, quoting what happened in the meeting, that "the fourth possibility is to submit requests by the creditor parties to pressure in order to accelerate the payment of their debts (countries or individuals) and immediately and here we point out that Iraq is owed (28) billion dollars in foreign debt except for odious debts (The debts of the Gulf states) amounting to (41) billion dollars, and according to the United Nations agreement on the immunities of states and their properties from jurisdiction in 2004, Article 21, paragraph (c) thereof, the immunity of the central bank reserve (currency cover) has been achieved. "

Option 5. Revalue your own money along the lines of the IMF Guidelines now ! Immediately, pull the USD off the streets of Iraq.  Use your electronic currency systems and cards ; linked to accounts via  ATM cards . Do this without endless debates and can kicking down the road techniques. No more "ain't got a quorum" so can't do didley, so we have to wait till after our next vacation type stuff.           Absolutely  a great and fantastic article Yota . Per usual. Gracias.

Edited by new york kevin
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Central Bank: It is a mistake to bet on the rise of the dollar

2020-01-12 | 07:12
Central Bank: It is a mistake to bet on the rise of the dollar
 
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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.

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 Dagher , General Manager 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 the 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 selling additional amounts, whatever this is possible and we will follow the movement of the market."



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.

https://www.alsumaria.tv/news/اقتصاد/331372/البنك-المركزي-من-الخطأ-المراهنة-على-ارتفاع-الدولار

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