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Advisor To The Prime Minister: The Federal Reserve Has Started To Cut Interest Rates To Zero And The Financial Discipline Is The Basis For Getting Out Of The Crisis !

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On the threshold of the crisis ... conflicting statements in the Prime Minister's Office regarding the issue of financing employee salaries by printing currency


2020-03-28
 
 
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Yassin Iraq: Baghdad

 

The issue of printing the Iraqi currency to finance the state budget, which the follow-up cell in the Prime Minister’s Office stated, has caused a great deal of social and economic circles, as Article 26 of the Iraqi Central Bank Law prohibits printing the Iraqi currency, while the economic advisor to the Prime Minister sees the appearance of Muhammad Saleh, The topic is just a suggestion.

Printed currency

The Follow-up Cell revealed, in the Prime Minister’s Office, that the government will be able to distribute the salaries of the current month of March, while it will resort to some solutions to ensure the provision of salaries next month. ), She explained that the salaries of employees amount to 3 billion and a half per month, which may push Iraq to print the currency as a last option, "as the state of the state will be affected starting from next month."

Cell leader Mustafa Jabbar Sanad said in a press statement, "The Corona virus crisis caused the disruption of the economy in general and the oil sector in particular, as global demand for oil decreased by 10 million barrels per day, while it will decrease during the next month by 9 million barrels." "The drop in the world oil price by one dollar means the loss of Iraq's annual budget of one billion dollars."

He pointed out that "among the solutions that the country's government may be heading towards is the printing of the currency," noting that "this is not possible without the presence of a cover of gold and hard currency. However, this option is offered as a last option, as things can go for a month or two." ”

Sanad cited his talk about currency printing that "the United States decided today, through a decision by the Congress, to print the currency at a value of two trillion dollars, which is the first country in the world, but it did not adhere to the issue of currency printing, so how do other countries that depend on the US dollar (referring to Iraq)".

Abdul Mahdi's advisor explains

The financial advisor to the Prime Minister, the appearance of Mohammed Saleh, revealed today, Saturday, Iraq’s options to face the new financial situation, which was imposed on the country after the decline in oil prices and the emergence of the Corona virus, while stressing that the issue of printing an Iraqi currency to avoid the crisis is just an opinion and a proposal.

Saleh said, in a statement, that "a team is working with the Ministerial Council to restructure state expenditures," noting that "our options to confront the financial situation are heading towards pressure expenditures."

He believed that "the issue of printing currency is merely a personal and suggested opinion that is not consistent with the Central Bank Law."

Economist explains

Today, Saturday, the economic expert, Nabil Al-Marsoumi, said that the Central Bank of Iraq Law of 2004 and its amendments prohibit government lending, but it allows him to purchase government securities from the secondary market only and that this is done through the use of a method of deduction of treasury transfers by the central bank as a debt to the bank The owner of the initial deduction, and this leads to an increase in his assets (the rights of the central bank over others), which requires an increase in his liabilities (the rights of others over the central bank) through an increase in the currency in circulation.

And the decree said in an interview to the platform "Yass Iraq" that "this is the same method that was used by the Central Bank of Iraq after the collapse of oil prices in 2014, knowing that the internal debts amount to about 40 trillion dinars representing treasury transfers and bonds discounted with government banks and the Central Bank of Iraq."

 

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He added, Iraq will resort to adopting this method now due to the large deficit in the 2020 budget and to cover the salary gap that may reach $ 15 billion.

The Central Bank of Iraq law does not allow the printing of the currency to finance the deficit in the public budget because this measure would expose the national currency exchange rate to collapse as well as its inflationary effects on the Iraqi economy.

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Victory Coalition: Printing currency is a ruin for the economy and should not be covered politically


2020-03-28
 
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Follow Iraq:

 

Today, Saturday, the victory coalition called for the government to hold the government accountable for its spending policies and misuse of power in managing public interests, after the country was affected by the sudden and massive drop in oil prices by the collapse of the OPEC agreement with Russia.

A member of the Victory Ali Al-Sunaid coalition said, in a statement seen by "Yassin Iraq", that "the options revealed by the head of the Follow-up Cell in the Prime Minister's Office are catastrophic options for the financial, economic and social security of the state," calling on Parliament to hold the current government accountable for its policies Reckless spending and abuse of power by managing public interests.

Al-Sunaid, a member of a coalition headed by former Prime Minister Haider al-Abadi, pointed out that “this government inherited a cash surplus from the government of al-Abadi, who fought wars of liberation and unity with the lowest financial budgets. 2019, but it has been wasted, and today we are on the threshold of a suffocating financial crisis due to the deterioration of oil prices. ”

The representative of Al-Nasr coalition stated that “what the head of the Follow-up Cell mentioned is dangerous and puts the government in front of legal and political accountability, saying: The state of the state will be affected starting next month (including the salaries of employees), which may prompt Iraq to print the currency as a last option. ”The state of the whole country, and it should not be covered politically and favorably by the beneficiaries at the expense of the country and the citizen. ”

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Print currency destroying the economy and society


2020-03-28
 
 
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Falah Al-Meshal

 

Leaks about the decision-makers' direction (of course someone knows them) to print an Iraqi currency without a cover in dollars, meaning the rubbish that was in the time of Saddam and the return of inflation and the dollar to 3000 dinars and perhaps more, in other words a complete destruction of the economy and society, do not be surprised by these ..!?

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The Prime Minister's advisor talks about the salaries of the employees: We have procedures that will not lead to their failure


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28th March, 2020

 

Adviser to the Prime Minister, Mazhar Muhammad Salih, spoke on Saturday of the salaries of the employees, while noting that the government has measures that will not lead to the stalling of salaries

And the Iraqi News Agency (INA) quoted Saleh as saying that "the salaries of the employees areamong the priorities of the government and they have financial measures that will not lead to their failure," noting that "our options to confront the financial situation are heading towards pressure of expenditures
 
He added, "There is a team working with the Ministerial Council to restructure state expenditures," noting that "the issue of printing the currency is only a personal opinion and a proposal that is not consistent with the Central Bank Law

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Saleh: The salaries of employees are among the priorities of the government and financial procedures will not be stalled

 

Saleh: The salaries of employees are among the priorities of the government and financial procedures will not be stalled
 
 
28th March 2020
 
 
The advisor of the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, confirmed today, Saturday, that the salaries of employees are a priority for the government and have financial measures that will not lead to their failure.

Saleh said in a statement to the Iraqi News Agency (INA), followed by "Al-Ghad Press", that "salaries are a sensitive and important issue, and the state's job is to provide salaries to employees," noting that "the state has taken financial measures that do not lead to disturbing salaries."

Saleh added that the options to face the financial situation are heading towards the pressure of high expenditures, pointing out that there is a team working with the Ministerial Council to restructure state expenditures, reduce expenditures, maximize revenues, and achieve financial discipline.


He continued, "The issue of printing currency is merely a personal opinion and a proposal that is inconsistent with the law of the Central Bank," noting that "there is no trend with the government to print the currency locally."


He pointed out that "the scheduling of internal loans is very easy, because it relates to local banks and companies," noting that "external debt is linked to negotiations with international institutions in order to postpone it, which is part of Iraqi diplomacy."

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Governmental advisor: Paying insurance is a priority for the government and printing currency is a personal opinion


28th March, 2020

 

Adviser to the Prime Minister reassured the appearance of Mohammed Saleh, on Saturday, the employees that their salaries are one of the priorities of the government, while he indicated that the issue of printing the currency is merely a "personal opinion" and a proposal that is not consistent with the law of the Central Bank. "The salaries of the employees are among the priorities of the government and they have financial measures that will not lead to their stumbling," he said, explaining that our options for facing the financial situation are heading towards pressure of expenditures.

Saleh added, "There is a team working with the Ministerial Council to restructure state expenditures," noting that "the issue of printing the currency is merely a personal opinion and a proposal that is not consistent with the Central Bank Law."

The head of the Follow-up Cell in the Prime Minister's Office, Mustafa Jabbar Sanad, said on Friday that it is likely that the process of delivering salaries will be affected during the month of April, pointing out that "the government may resort to the option of printing the currency recently presented as a last option after the United States breached Commitment to the determinants of printing and initiating them, while pointing out that Iraq could print the currency to walk for one or two months, for example. 

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Parliamentary Finance: The government cannot exchange any dinars against Corona

 

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08:33 - 03/28/2020
 
 

The Parliamentary Finance Committee confirmed, on Saturday, that the government cannot spend any amount against the Corona virus due to the end of the fiscal year, indicating that the government has the right to disburse donation funds to counter Corona.

Committee member Ahmed Hama said in a statement to "Information" that "Law 12/1 (Financial Management) does not give the government the authority to spend any dinars except for employee salaries," noting that "the government cannot spend any money as an emergency payment in the face of Corona."

Hama added, "The most appropriate solution for the time being is to collect donations from banks and businessmen and from the three presidencies to collect sufficient funds to confront Corona or wait for the new government and present the budget, but it needs a long time."

Hama pointed out that "failure to form a government and agree to pass the budget will lead to a stifling economic crisis, especially with the drop in global oil prices."

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Deputy: The government should develop unconventional emergency plans to meet economic challenges

 

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28th March, 2020


A member of the House of Representatives for Baghdad, Aras Habib Karim, Saturday, called on the government to lay out emergency plans to face economic challenges.

Habib said, in a statement received by / Mawazine News / a copy of it: "Despite the focus of government efforts towards confronting Corona as the most important challenge facing us today, it is necessary to develop contingency plans to meet the economic challenges and the potential social repercussions it can produce."

He added, "The response cannot remain below the level of unconventional challenges that need unconventional methods of confrontation as well."

 

#########

 

A deputy calls for drawing up contingency plans to face economic challenges

  LINK

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In the video, the company "Key Card" begins distributing salaries from homes


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28th March, 2020

With the entry into the third week of implementing the curfew in the capital, the K-Card company worked to form field teams to hand over employees and retirees their salaries at home as a step to urge the application of the ban.

 

Citizens praised this initiative for creating solutions for some of them due to the difficulty of movement for people with disabilities or patients, and stressed the necessity of adhering to the curfew and not leaving homes.

Echoes of popularity and government circles called on citizens to implement the curfew and not take to the streets to control the epidemic and not spread it among the general public, as the setting up to date is in control despite the increasing number of casualties throughout the country.


 - VIDEO ON THE LINK

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The Central Bank of Iraq withholds company funds accused
of organizing suspicious deals

 

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28th March, 2020


The Central Bank of Iraq announced, on Saturday, the seizure of company funds accused of organizing suspicious deals.

It stated in an official document issued by the bank and addressed to all banks, that "according to the letter of the Supreme Judicial Council, the Presidency of the Baghdad Appeal Court / Federal Rusafa / Rusafa Investigation Court, which is concerned with issues of integrity, money laundering, and economic crime, numbered ۱۹ reservation ۲۰۲۰ and dated 16/3/16 Reserve movable and immovable property belonging to the National Land Insurance Company / a private shareholding, its authorized manager (Ali Naseer Jabbar).

According to the information received, this company is accused of organizing suspicious deals with parties in the Iraqi Ministry of Education.

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In the document .. the central bank decides to reserve the funds of an insurance company

 

In the document .. the central bank decides to reserve the funds of an insurance company
 
 
03/28/2020 18:33:52
 
 
The Central Bank of Iraq decided to reserve the funds of a private insurance company.

 

According to the document issued by the Central Bank, I obtained {Al Furat News} a copy of it, that “according to the letter of the Supreme Judicial Council / Presidency of the Baghdad Court of Appeal / Federal Rusafa / Rusafa Investigation Court, which is concerned with issues of integrity, money laundering and economic crime, it is decided to seize movable and immovable funds The return (to the National Land Insurance Company / a private shareholding) its authorized director (Ali Naseer Jabbar)

 

 

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“The government cannot spend any amount against the Corona virus due to the end of the fiscal year”

 

This means new fiscal year starts April 01.

 

As we know, the perfect time to increase the dinar exchange rate is a the beginning of a new fiscal year. (April 01/2020)

 

Go CBI

Go New fiscal year

Go RV
 

Thanks for the post DT 🤡👍🏼

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27 minutes ago, Laid Back said:

“The government cannot spend any amount against the Corona virus due to the end of the fiscal year”

 

This means new fiscal year starts April 01.

 

As we know, the perfect time to increase the dinar exchange rate is a the beginning of a new fiscal year. (April 01/2020)

 

Go CBI

Go New fiscal year

Go RV
 

Thanks for the post DT 🤡👍🏼


HAPPY NEW YEAR!! 🍾 🥳

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Al-Nasr coalition asks Abdul Mahdi, where did you go with the financial surplus?
 

Al-Nasr coalition asks Abdul Mahdi, where did you go with the financial surplus?


Last updated: March 28, 2020 - 3:36 PM


 Baghdad / Iraq News Network -

A member of the victory coalition, MP Faleh Al-Ziyadi, spoke, on Saturday, of a financial surplus left by former Prime Minister Haider al-Abadi, during his government, to the government of resigned Prime Minister Adel Abdul-Mahdi, stressing that the latter’s government dispersed him. ,

“All of the money that Adel Abdel Mahdi’s government relied on was mainly dependent on the cash reserve provided by the government of Haider al-Abadi, but the government of Abdel Mahdi squandered that money, disbursed it without any thoughtful plans, and adopted a calming factor by launching appointments that its money reached 14 trillion dinars, and this is a big problem .

He added, "The economic situation in the government of Adel Abdul Mahdi is very difficult, amid a large financial deficit that was further aggravated by the collapse of world oil prices."

He pointed out that "the Prime Minister-designate Adnan Al-Zorfi faces political, epidemiological, security and economic challenges at the same time." , Adding:

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3 hours ago, Half Crazy Runner said:


HAPPY NEW YEAR!! 🍾 🥳

Looking forward 👍🏼😊

Go RV

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Deputy: Securing citizens ’oil ownership bonds at today's prices is the best way to cross the economic crisis


06:24 - 28/2020

 

Baghdad - Mawazine News,



MP Layla Mahdi Al-Tamimi confirmed, on Saturday, that securing oil ownership bonds for citizens at today's price is the best way to cross the economic crisis.

Al-Tamimi said in a statement, which received / Mawazine News / a copy of it, that "the suffocating economic crisis that the whole world is going through and Iraq as well as a result of the outbreak of the Corona virus and stopping the global economic movement requires looking at long distances that guarantee us to cross the crisis."

She added, "One of the most prominent real-time solutions is to sell oil underground to Iraqi citizens at today's prices is the best way to cross the crisis and investment for citizens. Our country also avoids the economic effects of the decisions of the great economies that have proven that they only think in the interest of their continuation, and this secures the rights of our future citizens and gives them safety And confidence in the existence of solutions that help them while the epidemic crisis is clear and conditions are gradually returning to normal. "

She noted, "Waiting for international loans or resorting to reducing wages and dues will put us in a downward spiral that is long overdue." Ended 29 / h

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5 hours ago, Laid Back said:

“The government cannot spend any amount against the Corona virus due to the end of the fiscal year”

 

This means new fiscal year starts April 01.

 

As we know, the perfect time to increase the dinar exchange rate is a the beginning of a new fiscal year. (April 01/2020)

 

Go CBI

Go New fiscal year

Go RV
 

Thanks for the post DT 🤡👍🏼

But but but LB????? We have heard this the last 8-12 years. Why would this year be any different??? Not trying to be a negative Nelly. Just SICK and TIRED of all the talk!!!! 😭🤦🏻

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They had their time to shine. Iranian lovers made this into a Romeo and Juliet part II. Part III is where they drown in their own blood.

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What's different this time? 

-America doesn't need Iraqi oil, so their government has no leverage over America

-this means America can do what it wants

-Iran is struggling with the Corona Virus

-the price of oil is very, very low....and Iraq requires a high oil price, just to put food on the table

-low oil prices means a huge hole in the Iraqi budget, they must go begging to international financiers

-America controls international finance

-the financial powers that be will not be giving Iraq any bailout money without them complying

-America is insisting Iranian militias leave Iraq...or Iraq can starve and not get any money to keep their country afloat

-Iran has been severely wounded by years of economic sanctions

-America has a President who wrote The Art of the Deal

-President Trump is no fool, is not weak, can spot weakness in his opponent a mile away

 

America is in the strongest position it has been in the Middle East, in a very very long time. For decades America needed ME oil. This gave those governments leverage over America. Those days are gone. Each day Iraq and Iran get weaker. Iraq and Iran are in their weakest position they have been in a very very long time.

 

Advantage America. The U.S.A. is calling the shots.:bananacamel::peace:

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9 hours ago, DinarThug said:

Victory Coalition: Printing currency is a ruin for the economy and should not be covered politically

 

The currency print file continues to reap controversy ... an angry statement from the victory coalition


13:41 Saturday 28 March 2020


 

The leader of the victory coalition, Ali Al-Sunaid, stressed on Saturday that the option of resorting to printing the currency to face the economic crisis is "catastrophic" and has negative repercussions in the long run.

Al-Sunaid said in a statement that "people" received a copy of it today (March 28, 2020) that "the options revealed by the head of the Follow-up Cell in the Prime Minister's Office are options to confront the financial crisis are considered catastrophic options for the state's financial, economic and social security," calling on Parliament to "hold the current government accountable for its policies." Reckless spending and abuse of power by managing public interests. ”

A member of Al-Nasr coalition confirmed that “this government inherited a cash surplus from the Abadi government, which fought wars of liberation and unity with the lowest financial budgets. However, with rational management of wealth, it managed to deliver $ 14 billion to the government of Abdul-Mahdi, in addition to the 2019 budget, but it was wasted, and here we are. Today, on the threshold of a stifling financial crisis, due to the deterioration of oil prices.

He added that "what the head of the follow-up cell mentioned is dangerous and puts the government in front of legal and political accountability. He said:" The state of the state will be affected starting next month (including the salaries of employees), which may push Iraq to print the currency as a last option. "It threatens the state of the entire state, It should not be covered politically and conclusively by the beneficiaries at the expense of the country and the citizen. 

He pointed out that "the coalition of victory has always warned against the policies of waste, corruption and the deprivation of wealth, the last of which was its warning on 10 March last, calling for a rapid recovery of the crisis and the development of valid and decisive solutions to ensure the financial and economic security of the state."

The financial and economic advisor in the Prime Minister’s Office, Mazhar Muhammad Salih, confirmed on Saturday that the salaries of employees are a priority for the government, revealing the existence of financial measures that will not lead to their stumbling .

Saleh said in a statement to the official agency and its follower, "NAS", today (28 March 2020), "Our options to face the financial situation are heading towards pressure of expenditures."

Saleh added, "There is a team working with the Ministerial Council to restructure the state's expenditures."

The financial advisor touched on the file of currency printing, saying that it is "just a personal opinion and a proposal that is not consistent with the Central Bank Law."

The head of the Follow-up Cell in the Prime Minister's Office, Mustafa Jabbar Sanad, confirmed on Friday that Corona's “pandemic” affected the level of demand for oil that will continue to decline, while speaking about future scenarios, and government plans to confront the “shock” of oil prices.

Sanad said in a statement to "People", (March 27, 2020), that "Iraq’s imports after the drop in oil prices will amount to two billion dollars only per month, of which one billion dollars goes to licensing tour companies and remains for the state treasury only one billion dollars, while the salaries of employees amount to 3 billion One and a half dollars.

Where did the state pay the salaries of March in light of the collapse?

Sanad said that "Iraq receives the sales amounts of oil after about ten days or fifteen days from the end of the month, and that the amounts held by the state and which paid salaries after that were the amounts of last month received from the sale of oil, and it is likely that the salary delivery process will be affected during the month of April Next, although the government has alternatives represented in selling bonds to banks and internal borrowing, as well as conditions for the World Bank to provide three billion dollars to Iraq, unless it is spent on the operational budget.

Sanad said that "the government may resort to the option of printing the currency recently put forward as a last option after the United States breaches the commitment to the limitations of printing and proceeding with it," noting that "Iraq can print the currency in order to walk for one or two months, for example."

what does that mean?

In turn, the economist Salam Semsem considered that "resorting to this option, if it was taken by the concerned authorities, would represent a great disaster for the state in general, and for the citizens, and it would cause significant inflation in the markets, as that plan was followed by Saddam Hussein, who was It prints money without a cash blanket from the dollar, which means that the value of the dollar increases significantly against the exchange rate of the dinar.

She added in a statement to "People" today (March 27, 2020) that "the talk at the moment about printing the currency may be linked to the issue of US sanctions that Washington recently hinted in the context of the sanctions on Tehran, where the grace period was reduced to 30 days, and if we were exposed To such sanctions, Washington may freeze Iraqi money from selling oil.

She pointed out, "This option will mean the biggest blow to the Iraqi dinar, and there will be a large cash influx that harms citizens, especially those with low incomes, and employees."

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The printing of the currency confirmed a personal opinion and is not consistent with the central bank ... The Prime Minister's Adviser: Securing employee salaries is a government priority

'

March 28, 2020 5:15 PM 

 

Author: alzawraapaper

 

Baghdad / Al-Zawra: 

 

 

The 

adviser to the Prime Minister, Mazhar Muhammad Salih, assured on Saturday, the employees that their salaries are a priority for the government, while he pointed out that the issue of printing the currency is merely a "personal opinion" and a proposal that is not consistent with the Central Bank Law. For his part, former MP Majed Shankali said yesterday that the proposal to print the currency is an "economic catastrophe" that plunges the Iraqi dinar against the dollar.

The official Iraqi News Agency (conscious) quoted the adviser to the Prime Minister, Mazhar Muhammad Salih, as saying, "The salaries of the employees are among the priorities of the government and they have financial measures that will not lead to their stumbling." He explained that our options to face the financial situation are heading towards pressure expenditures.

Saleh added, "There is a team working with the Ministerial Council to restructure state expenditures." Pointing out that "the subject of printing currency is merely a personal and suggested opinion that is not consistent with the Central Bank Law."

The head of the Follow-up Cell in the Prime Minister’s Office, Mustafa Jabbar Sanad, said Friday that the salary delivery process is likely to be affected during the coming month of April, pointing out that “the government may resort to the currency printing option recently proposed as a last option after the United States violates the commitment With the determinants of printing and initiating them, while he indicated that Iraq could print the currency to walk for one or two months, for example.

For his part, the former deputy, Majed Shankali, confirmed yesterday, Saturday, that the proposal to print the currency is an "economic catastrophe" that plunges the Iraqi dinar against the dollar.

"A proposal to print the currency that the government might resort to as a solution to the problem of falling oil prices is an economic catastrophe," Shankali said in a tweet on his personal page on Twitter followed by "Al-Zawraa".

He added, "The printing of currency means inflation and a decrease in the price of the dinar against the dollar and a rise in prices." Stressing that "these will be solutions for politicians and people who consume without producing, eating without planting, spending more than their imports."

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Benefiting from the crisis ... Is the digital dollar kicking off in the Corona era?

 

الاستفادة من الأزمة.. هل ينطلق الدولار الرقمي في عصر الكورونا؟
 
 

 March 28, 2020 11:36 PM


Mubasher - Ahmed Shawky :

 

The American administration intends to send checks to citizens within weeks as part of a stimulus package to address the economic consequences of the spread of Corona

But lawmakers have not said anything about what millions of people without bank accounts will do with these checks once they receive them

Writer Morgan Risks answers in an analytical view through Bloomberg Openion that people without American bank accounts will visit the checkout outlets and similar financial companies, as converting the checks into cash will cost up to 3.5 percent of the face value - money that they can Use it to meet the urgent need

This is not just a problem for these families. From the government’s point of view, sending material checks to individuals is costly and ineffective, and in crises time is the key

And when physical spacing is crucial, reducing the need for material delivery - such as checks and dollar notes - will be good for everyone

The solution: We need a digital dollar, a currency that all Americans can use to engage in the economy of the 21st century, and this crisis provides an ideal opportunity to create it

But how is it done ? Congress can give all US citizens the option to receive stimulus funds by opening digital accounts or wallets directly with the Federal Reserve - a proposal that Democrats have adopted in the Corona Response Bill

And the basic infrastructure is already there, because the central bank already provides accounts for different banks and government agencies, these accounts pay attractive interest, with an average of 1.5 percent over the past two years compared to less than 0.1 percent for regular current accounts, and the payments through them are very clear and secure: the Federal Reserve cannot default on Repayment, so deposit insurance is not necessary for both small and large balances

In order to quickly register retail customers (and companies) in new federal accounts, Congress must use private sector banks that already have the necessary internet and customer service systems (in addition to their own accounts at the central bank), and the federal bank can compensate banks for their work as an intermediary until it is available to him Time to develop his own website and support its employees

Benefits of strengthening the digital dollar

"Federal Accounts" will enjoy a wide range of long-term benefits, the most obvious of which is that they will boost financial inclusion because nearly 7 percent of US households lack a bank account, and another 19 percent have a bank account but still depend somewhat on service providers Expensive non-bankers - such as checkout outlets - for payments and other financial needs

Federal accounts will also place these families in the mainstream financial stream, with no fees or minimum balances, and the US money and payments system will become a public infrastructure similar to roads, sidewalks, public libraries, and the justice system

In addition, the Fed's bank accounts will reduce the possibility of future financial crises represented in the collective withdrawal of funds from investors by the system, and the central bank accounts will replace some unstable deposit alternatives such as money market funds and repurchase agreements, where large depositors currently tend to Store their money

And with that money stored safely in the Federal Reserve and always available, these depositors will have no reason to panic and escape, removing a major source of system vulnerability

Central bank accounts will also make the U.S. payment system faster and more efficient, because all payments between accounts will be visible in real time, it will strengthen the Fed’s ability to manage the economy, and interest rate adjustments will be transferred directly to a wide audience rather than just the banks

The American Bank can conduct a "money helicopter" (an expansionary fiscal policy that is funded by increasing the money supply and that involves printing large amounts of money and distributing them to the public in order to stimulate the economy) directly in these bank accounts for emergency stimulus

Consumers and retailers will also benefit because unlike other banks the Federal Reserve will not charge fees to merchants who accept their debit cards

The digital dollar will also maintain the dollar’s position as the dominant global currency - a huge economic advantage for the United States, as China has a digital currency in the pipeline, and Facebook’s “Libra” so the dollar will likely lose its global standing if it does not compete

What about the cost ? Beyond squeezing financial resources, the Fed's bank accounts will generate government revenue, and the central bank will expand its portfolio of government bonds and loans to banks, whose interest will almost certainly exceed the operating costs of the Fed's accounts. Surplus profits will be returns to the federal government

Certainly, banks may not welcome competition from the Federal Reserve, and the popularity of central bank accounts will reduce their deposits, which are the main source of funds

But the central bank can compensate for this by lending to banks and providing them with ample resources to continue lending to individuals and companies

It's time to bypass the United States' paper currency system and scrutiny, as the digital dollar can help improve the government's emergency response to the current and future crises

The digital dollar will also meet the increasing demand for sovereign digital money

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Edited by DinarThug
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Al-Rafidain: We have the financial liquidity and we will continue to distribute the employees salaries

 

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09:08 - 29/03/2020
 
 

On Sunday, the Rafidain Bank announced that it will continue to pay the salaries of employees and owners of private outlets through its branches located in Baghdad and the provinces.

The bank’s media office said in a statement that it received “the information”, a copy of it, that “the bank has sufficient financial liquidity to distribute the employees’ salaries and the dues of the owners of the outlets offices and other categories without interruption after allocating large amounts of money to feed its branches.”

He pointed out that "the bank pays the employees' salaries through the electronic card and according to the specific times and dates set by each department." 

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Cut interest rates inject liquidity using a worthless fiat currency in a system already in crisis doesn’t make sense unless a reset is around the corner

Edited by screwball
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