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An economist suggests that the government borrow from the central bank’s reserves to counter the risk of economic collapse


Mary B
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An economist suggests that the government borrow from the central bank’s reserves to counter the risk of economic collapse

The Central Bank of Iraq
 
 

 



 An economic expert suggested to the government, borrowing from the stockpile in the Central Bank of Iraq in order to cover the requirements of the country and face the risk of economic collapse caused by the collapse of oil prices globally, due to fears of the Corona virus. 

Malath Al-Amin said that (Iraq is heading towards a major financial crisis due to the dependence of its annual budget on oil revenues, and this imbalance has persisted since 2005 as a result of successive governments ignoring calls by monitors and economic experts to diversify the sources of revenue that would help in providing the budget with additional funds that contribute to facing any crisis Emergency causes the price of crude to fall globally). The Secretary stressed that (there are urgent measures that can be used to avoid economic collapse, including borrowing from the Central Bank

He added that (the decline in oil prices came as a result of global concerns about the spread of Corona, which led to weak growth and lack of demand to buy oil, and therefore the effects of this began to be evident on the price drop).

to cover the necessary expenses and filling the budget deficit, as it can be recovered after the recovery of crude prices with an emphasis on not resorting to external borrowing that Iraq has interest that increases its burden and cannot be Pay it now ().

He pointed out that (the citizen’s situation does not currently bear the imposition or increase in taxes, and therefore the government must find real ways to tackle the crisis far from the salaries of employees and retirees).

F.A.
 
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Mary B wrote: An economist suggests that the government borrow from the central bank’s reserves to counter the risk of economic collapse

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The Secretary stressed that (there are urgent measures that can be used to avoid economic collapse, including borrowing from the Central Bank.

He pointed out that (the citizen’s situation does not currently bear the imposition or increase in taxes, and therefore the government must find real ways to tackle the crisis far from the salaries of employees and retirees).

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Thanks for the article Mary B ... he challenges the GOI and the CBI to do something soon.

 

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strictly my opinion but raiding the cbi is the wrong move for sure the entire issue lies at the feet of the GOI they refuse to govern the country and move it forwards iraq has so much potential not without real leadership to do it  ... cheers we wait

but  

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3n1 I agree. Mary B good article. This is what these guys do. They wait for a crisis and then us it as an excuse to dip into the til.

we all know what the answer is... Revalue the currency to a fair and reasonable value. Maliki tried this when he was in office. They bring this on themselves and want To go to the easy low hanging fruit first instead of doing what's right. 

I just hope Al Alak has the balls to just say no, and then turn around and do what's right. We will see. It's crunch time now. Oil prices well below the prescribed rate for the budget and dropping. The reserves are solid and can cover the value of the currency at at least 1:1. Note count has been substantially reduced. 

Git er done boys! Mr.Unlikely needs a new boat!

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3 minutes ago, mr.unlikely said:

3n1 I agree. Mary B good article. This is what these guys do. They wait for a crisis and then us it as an excuse to dip into the til.

we all know what the answer is... Revalue the currency to a fair and reasonable value. Maliki tried this when he was in office. They bring this on themselves and want To go to the easy low hanging fruit first instead of doing what's right. 

I just hope Al Alak has the balls to just say no, and then turn around and do what's right. We will see. It's crunch time now. Oil prices well below the prescribed rate for the budget and dropping. The reserves are solid and can cover the value of the currency at at least 1:1. Note count has been substantially reduced. 

Git er done boys! Mr.Unlikely needs a new boat!

I want Mr. Unlikely to get that boat. Great post and responses.  :tiphat:

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@ Mr.Unlikely ,  heres to ur new boat man ... there's no way we're the only ones that know the cure , and u r correct maliki tried twice to use cbi reserves Shabibi was somehow able to stop it but as we all know how it ended for Shabbs at the cbi he had to flee iraq to avoid prison and many of the cbi staff was imprisoned included Muhammad Selah who was shabibi sidekick at the time and is now referenced as a advisor to the PM who knows where this is all headed ...:bananacamel:

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The CBI is an independent entity on charge of monetary policy. I believe they are ready to move from a closed economy  to an open market economy, but some members of the GOI wants to continue stealing money from the daily auctions.


The ruling class love the daily auctions... They don’t want it to end.

 

Moving to an open market economy means no more daily auctions of US dollars.

 

Go open market economy 

Go end of daily auctions 

Go end of corruption 

Go dinar market value 

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44 minutes ago, Laid Back said:

The CBI is an independent entity on charge of monetary policy. I believe they are ready to move from a closed economy  to an open market economy, but some members of the GOI wants to continue stealing money from the daily auctions.


The ruling class love the daily auctions... They don’t want it to end.

 

Moving to an open market economy means no more daily auctions of US dollars.

 

Go open market economy 

Go end of daily auctions 

Go end of corruption 

Go dinar market value 

Exactly, and until they can get a handle on this corruption we are fighting an up hill battle. 

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8 hours ago, mr.unlikely said:

3n1 I agree. Mary B good article. This is what these guys do. They wait for a crisis and then us it as an excuse to dip into the til.

we all know what the answer is... Revalue the currency to a fair and reasonable value. Maliki tried this when he was in office. They bring this on themselves and want To go to the easy low hanging fruit first instead of doing what's right. 

I just hope Al Alak has the balls to just say no, and then turn around and do what's right. We will see. It's crunch time now. Oil prices well below the prescribed rate for the budget and dropping. The reserves are solid and can cover the value of the currency at at least 1:1. Note count has been substantially reduced. 

Git er done boys! Mr.Unlikely needs a new boat!

 

Quite the post, considering your name!

 

+1 for your boat ;)

 

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A lot of big news events all around the world Adam.  I’m thinking this just might be the beginning of an extraordinary financial event.   It’s all a process and it might take years to play out but the CV outbreak might be the “red flag” triggering mechanism.  Always thinking positive, even when the news is scary, and not too great.  

 

Thank you you for all your posts Adam.  

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Rafidain Bank launches soft loans: repayment over 5 years


08:55 Sun, 08 March 2020

Baghdad - people

 

Al-Rafidain Bank announced, on Sunday, the granting of soft loans to citizens of shops and other professions amounting to 25 million Iraqi dinars.

The media office of the bank said in a statement, "People" received a copy of it, today (8 March 2020), that "Al-Rafidain Bank announces the granting of small projects loans to citizens to reach 25 million dinars."

He continued, "This grant of loans came in line with the bank's policy aimed at diversifying the services provided by it and in support of the national economy in financing various projects and reducing unemployment and operating manpower."

He added, "We invite citizens of shops and other professions of all kinds to take advantage of this loan, and apply for it in the bank’s branches in Baghdad and the provinces," explaining that "the loan repayment period is 5 years, i.e. 60 months."

LINK

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I disagree with Mr. Unlikely's post that an immediate RV is the answer to Iraq's woes. And I am going to take a hit for saying this. Iraq is listed as 179 out of 190 countries as doing ease of business in the country. This has a lot more to do with the RV than most realize. Why? It is long term and short term foreign investment that will pressure Iraq to RV more than its dependency on oil but oil is a part of it. No one wants to invest in a country that sits near the bottom of the barrel to do business in. Reconstruction is investment sure, but if doing business in Iraq is near the bottom of the barrel, then this leads to further corruption and projects starting and either taking forever to complete or never being complete. Iraq needs to work on becoming more business friendly if they want to see investors come into their country. Investment does not mean buying dinars, it means increasing the welfare of the country. Ask yourself if you could invest in Iraq outside of the dinar, would you at the current state? The answer would more than likely be a resounding no, at this time with current events going on in Iraq and external to Iraq. I have said this before that Iraq needs to court investors and make it more friendly for investors. The IMF has also echoed this. Until Iraq gets their act together, can bring in investors and have stability in the country, there will be no RV. I some people that are afraid that Al-Queada is going to take over Iraq and there would be no RV ever as they believe the country is in the throes of collaspe. Well if it isn't Al-Queada then it will be Iran. They already control the government of Iraq. At this time I don't subscribe to their idea. If Iraq does not seat a full government by the end of this year, then I might give it more thought. Iraq needs more external investors and less business exodus.

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8 hours ago, Pitcher said:

A lot of big news events all around the world Adam.  I’m thinking this just might be the beginning of an extraordinary financial event.   It’s all a process and it might take years to play out but the CV outbreak might be the “red flag” triggering mechanism.  Always thinking positive, even when the news is scary, and not too great.  

 

Thank you you for all your posts Adam.  

Me too

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4 hours ago, Theseus said:

I disagree with Mr. Unlikely's post that an immediate RV is the answer to Iraq's woes. And I am going to take a hit for saying this. Iraq is listed as 179 out of 190 countries as doing ease of business in the country. This has a lot more to do with the RV than most realize. Why? It is long term and short term foreign investment that will pressure Iraq to RV more than its dependency on oil but oil is a part of it. No one wants to invest in a country that sits near the bottom of the barrel to do business in. Reconstruction is investment sure, but if doing business in Iraq is near the bottom of the barrel, then this leads to further corruption and projects starting and either taking forever to complete or never being complete. Iraq needs to work on becoming more business friendly if they want to see investors come into their country. Investment does not mean buying dinars, it means increasing the welfare of the country. Ask yourself if you could invest in Iraq outside of the dinar, would you at the current state? The answer would more than likely be a resounding no, at this time with current events going on in Iraq and external to Iraq. I have said this before that Iraq needs to court investors and make it more friendly for investors. The IMF has also echoed this. Until Iraq gets their act together, can bring in investors and have stability in the country, there will be no RV. I some people that are afraid that Al-Queada is going to take over Iraq and there would be no RV ever as they believe the country is in the throes of collaspe. Well if it isn't Al-Queada then it will be Iran. They already control the government of Iraq. At this time I don't subscribe to their idea. If Iraq does not seat a full government by the end of this year, then I might give it more thought. Iraq needs more external investors and less business exodus.

Also agree

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12 hours ago, Laid Back said:

The CBI is an independent entity on charge of monetary policy. I believe they are ready to move from a closed economy  to an open market economy, but some members of the GOI wants to continue stealing money from the daily auctions.


The ruling class love the daily auctions... They don’t want it to end.

 

Moving to an open market economy means no more daily auctions of US dollars.

 

Go open market economy 

Go end of daily auctions 

Go end of corruption 

Go dinar market value 

Bingo! Triple agree

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the answer is so simple. Revalue then pay back the loans with a exponential increase in dinar. It’s like  getting a Huge  discount on repayment liability. Or they could clamp down on political corruption and find plenty of money to run the government.

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On 3/9/2020 at 12:09 AM, DinarThug said:

Rafidain Bank launches soft loans: repayment over 5 years


08:55 Sun, 08 March 2020

Baghdad - people

 

Al-Rafidain Bank announced, on Sunday, the granting of soft loans to citizens of shops and other professions amounting to 25 million Iraqi dinars.

The media office of the bank said in a statement, "People" received a copy of it, today (8 March 2020), that "Al-Rafidain Bank announces the granting of small projects loans to citizens to reach 25 million dinars."

He continued, "This grant of loans came in line with the bank's policy aimed at diversifying the services provided by it and in support system" rel="">support of the national economy in financing various projects and reducing unemployment and operating manpower."

He added, "We invite citizens of shops and other professions of all kinds to take advantage of this loan, and apply for it in the bank’s branches in Baghdad and the provinces," explaining that "the loan repayment period is 5 years, i.e. 60 months."

LINK

Thank you 

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