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Learn about the risks that the central bank will face in the event of US sanctions

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Learn about the risks that the central bank will face in the event of US sanctions

Political | 06:39 - 11/01/2020

 
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Baghdad - Mawazine News
revealed a member of the Finance Committee, Magda Al-Tamimi, on Saturday, about what happened in the committee's meeting with the governor of the Central Bank and the head of the Financial Supervision Bureau and the Deputy Minister of Finance and the Iraqi Trade Bank (TBi).
Al-Tamimi said in a statement received by / Mawazine News / a copy of it, that "the attendance of the government side made a presentation on the possible risks in the event of sanctions against Iraq by the United States of America."
The penalties are as follows:
1_ The possibility of stopping the supply of Iraq with the dollar in cash, which is an easy measure to take by the United States, as 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 need a period Not short, for example, 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., since most international banks have difficult conditions and restrictions for dealing with Iraq as an unstable country and have many problems and will be dealt With him With great caution, in addition to the conversion 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 provide Iraq with the amount of currency that it will need in cash, as these countries may not have this ability to pump large amounts of currency Cash. "
2_ 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 influence 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.
3_ Another 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 the circulation of their names. Action Task Force (FATF), as this organization is concerned with checking country-specific classifications at periodic intervals.
4_ The other possibility is to submit requests by the creditor parties to press for an immediate payment of their debts (countries or individuals) and immediately and here we point out that Iraq owes (28) billion dollars in foreign debt except for the odious debts (the debts of the Gulf states) amounting to (41) billion Dollars under the United Nations Convention on State Immunities and Property from Jurisdiction in 2004. Al-
Tamimi explained Article 21 as follows:
Article 21, paragraph C of which has been achieved immunity from the reserves of the Central Bank (currency cover).
The following is the text of Article 21 and paragraph C thereof: The
property of the central bank or other monetary authorities in the state.
Specific classes of property
1. The following categories, in particular, of a State’s property are not property used or intended to be used specifically by the State for purposes other than government non-commercial purposes under subparagraph (c) of Article 19.
C of Article 21 of the Bank’s property Central or other monetary authorities in the state "
If the danger lies in government reserves and other Iraqi deposits, they are subject to seizure according to Article 19, Paragraph C,
Article 19, and Paragraph C of it:" The immunity of states from the following compulsory measures for the issuance of the ruling
Compulsory measures may not be taken following the issuance of the judgment, such as seizure, provisional attachment, and executive attachment, against the property of a state in connection with a lawsuit before a court of another state, except in the following cases and within its scope:
(c) Or if it is proven that the state uses these properties or intends to use them on Specifically for purposes other than government non-commercial purposes, and that they exist in the territory of the state of the court, provided that subsequent measures for the issuance of a judgment are limited to property related to the entity against which the lawsuit is directed. ”
The size of potential commercial creditors’ claims can be estimated as much as the Iraqi funds. N (2_3) billion dollars, and if paid, it will be subject to the terms of the Paris Club.
If the government’s decision to withdraw the Iraqi money from the United States of America and deposit it in the banks of other countries will be of the same degree of danger, as international banks implement the decisions of the United States of America because of the direct and indirect effects on them, in addition to that most of the international banks are not ready to deal with Iraq because of the high The degree of risk in it and it must be noted that all payments to Iraq are in the currency of the dollar, it will lose the status of the transfer to other currencies (losses of the conversion difference).
It is worth noting that the budget for the year 2020 in which current expenditures increased significantly, in addition to increasing the burdens that the budget will bear, especially in the salaries clause, as the employee compensation paragraph jumped from (43) trillion in the 2019 budget to (53) trillion dinars in the 2020 budget
Here, we note that the economic embargo imposed on Iraq in the 1990s and how to manage it and manage the funds needed to pay the obligations cannot be compared with the current situation in Iraq, which cannot bear such shocks, as there is a big difference in the numbers of employees and then salaries, as well as the presence of industrial companies Rabhah then used her profits to cover salaries.
Taking into consideration the amount of documentary credits, which are expressed in dollars, and the presence of (14) billion dollars in sums reserved for the purpose of covering government sector imports and the guarantees of the Ministry of Finance.
Accordingly, the situation and the potential dangers to Iraq must be studied extensively in preparation for making sound decisions and putting alternatives based on achieving the interests of Iraq first and foremost. This is what the rational reference indicated in its sermon on Friday, 10/1/2020 when it confirmed that Iraq is the master of itself and the necessity of providing a happy life. And for the Iraqi to live in dignity and safety and enough of the wars and adversities he suffered at various levels during decades of time, the parties concerned will meet the national responsibility and look at a comprehensive vision for the future of the people and solve the current crisis by responding to the requirements of the reform map in order to avoid the country’s dangers. Scenarios that may not be ominous "29 .anthy / h

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Parliamentary finance reveals potential risks in the event of sanctions against Iraq

 

Economy 01/11/2020 18:54 172 Editor: as

 

Baghdad today - Baghdad

Member of the Finance Committee MP Majida Al-Tamimi revealed on Saturday the potential risks in the event of sanctions against 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 in question 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 marketing 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. The private E in countries according to periodic periods. "

 

And Tamimi indicated, quoting what happened in the meeting, that "the other 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. "

 

Article 21 and paragraph (c) of it stipulate:

 

The property of the central bank or other monetary authorities in the country.

 

Specific classes of property

 

1. The following categories are not considered, in particular, from the property of a State used in use or intended to be used specifically by the State for purposes other than government non-commercial purposes under subparagraph (c) of Article 19.

 

C of Article 21 property of the Central Bank Or other monetary authorities in the country. "

If the risk lies in government reserves and other Iraqi deposits, they are subject to seizure under Article 19, paragraph c

 

Article 19 and Paragraph C of it: “The immunity of states from the following compulsory measures for the issuance of the ruling. It is

 

not permissible to take following compulsory measures for the issuance of the judgment, such as seizure, provisional attachment, and executive attachment, against the property of a state in connection with a lawsuit before another state’s court except in the following cases and within its scope:

 

Or if it is established that the State uses or intends to use these properties specifically for (c) purposes other than governmental non-commercial purposes, and that it is present in the territory of the State of the Court, provided that the compulsory measures subsequent to the issuance of the judgment are limited to the property related to the entity against which the case is directed.

 

It is possible to estimate the size of the potential commercial creditors' claims on Iraqi money as a maximum between (2_3) billion dollars and in the event that it is paid it will be subject to the conditions of the Paris Club.

 

If the government’s decision to withdraw the Iraqi money from the United States of America and deposit it in the banks of other countries will be of the same degree of danger, as global banks implement the decisions of the United States of America because of the direct and indirect effects on them, in addition to that most of the international banks are not ready to deal with Iraq because of the high The degree of risk in it and it must be noted that all of Iraq’s payments are in the dollar, it will lose the status of the transfer to other currencies (losses of the transfer difference).

 

 

 

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There ya go, Iraq.

Revalue the Dinar and use your own money instead of the dollar.

Tons of reasons in articles above, why it's a great idea.  

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24 minutes ago, Floridian said:

There ya go, Iraq.

Revalue the Dinar and use your own money instead of the dollar.

Tons of reasons in articles above, why it's a great idea.  

You are the next central bank  president! 

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2 minutes ago, jeepguy said:

You are the next central bank  president! 

 

It's possible I'd be better at it than the guy who's in there now.   😂 😂 😂

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1 hour ago, Floridian said:

 

It's possible I'd be better at it than the guy who's in there now.   😂 😂 😂

Oh it is a guarantee!

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Sunday، 12 January 2020 12:06 AM

US threatens Iraq to cut off Iraq's access to key central bank account

https://www.thebaghdadpost.com/en/Story/45407/US-threatens-Iraq-to-cut-off-Iraq-s-access-to-key-central-bank-account

image.png.e53a1a8b6802c9d4dd54398aca5334f9.png

 

 

The Trump administration has threatened to shut off Iraq's access to a key central banking account if U.S. troops are forced to with drawn from the country, according to a new report.

 

The State Department warned that Iraq's access to its main account at the Federal Reserve Bank of New York could be shut off if the Iraqi government asks American troops to leave, Iraqi officials told the Wall Street Journal.

The account is used to collect revenue from Iraq's overseas oil sales, and shutting off access to it could quickly cripple the country's economy and its government's ability to provide basic services.

The State Department did not immediately respond to a request for comment from DailyMail.com on Saturday. The U.S. currently has some 5,300 troops in Iraq.

Edited by 6ly410

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Thanks  for the post 6ly410- very much. Happy belated New Year to you -and to all of DV for that matter.

 

This is 'something't that I've been waiting for for a while and am pleased to see. Something being Trump's influence- on Iraqi finances- in a way and at a time that no one can or will ever be able to predict. 

 

I've had strong hunches in the past on 3 occassions- regarding a chance in value- and been wrong thus far.( Although the word May always comes through tp me strongly in an energetic snd intuitive sense) . Regardless of my latter shortfalls in my own insight, one thring is becoming very clear-  this is going to hit during Trump's presidency-which is fine with me.

 

 

 

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Absolutely agree with you Presence. I’ve been saying that for years now. It’s looking good. This will definitely bolster Trump being in office for another 4 years as well. 

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I agreewith you wholeheartedly Ziggy

  Imagine what the neyseyers will think when the wwe orldwide economic ramifications of his presidency really start to sho themselves. Nothing. They will be speechless. Regardless of politics, he's proven his consistency in many ways- and wd are watching the 'icing on the cake' be formed in a matter of speakibg.

 

I viewed 3 or 4 classic Letterman episodes on YouTube last month- and in one of them Dave keeps leading up to and fi ally says:, " yeah, but if you want something done right..."

 

They are truly spectacular interviews-ahowing a grounded and reserved Trump -and Dave at his best.   I can only imagine how long Trump's  been 'licking his chops' over the thought of running for office- and God Bless Him, America, and the world for that matter that he chose to dive in when he did: The World is a safer place. 

 

The latter words aren't my opinion, but rather a fact, as every president before him has strived yet fallen short of his mark to date in achieving 2 sinple goals: peace and prosperity.

 

He's anti-war,  and proven his ability to reach prosperity - especially for and in America - despite the relentless resistance surrounding him by the democratic party (and many baffled Republicans as well.  (The thing that really gets me is how you have dems in office who went out on a limb to get things accomplished when Obama  (Barry  S.) was in office, but changed their tune to 'no' simply to go against Trump. Shumer is on record stating he was in favor of $6 billion for the wall in 2011 - but  vehemently states absolutely not when Trump is around.

 

That unfortunately is a sign of extreme prejudice  - which is another thing I look forward to seeing less of in the coming years.

 

Sorry to rant...  Go RV!!!

 

 

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