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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries


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(Independent) ... the Central Bank of Iraq issued a set of decisions regarding the withdrawal of the US dollar.

 

On the same level, an authorized source in the Central Bank of Iraq stated what some people are talking about to some officials about the possibility of printing an Iraqi currency to avoid economic problems and so on, including the following:

1- The printing of Iraqi banknotes is a routine, technical procedure practiced by the central bank in accordance with the requirements of cash circulation, and printing of banknotes is a completely separate process from the cash issuance process.

2- No party can withdraw banknotes from the central bank unless there are funds in their accounts that cover the amount to be withdrawn.

 

Therefore, to say the dinar does not mean any meaning other than strengthening the treasures of the Central Bank in accordance with the monetary policy, and not for any other purpose or purpose .. The Central Bank Law and Monetary Policy do not allow the issuance of cash in favor of an account without balance.

3- When the Ministry of Finance wishes to finance spending on the various spending units and salaries, it requests the Central Bank to strengthen its account in Iraqi dinars in exchange for withdrawing from its account in dollars.

No amount is deposited into the finance account in dinars unless offset by a withdrawal from its dollar account.

 

4- The Central Bank Law does not allow him to lend to the government, whether by printing the currency or any other way, direct or indirect, and he is entitled to deduct the treasury transfers, if they are present in the secondary trading market, as it is one of the tools of monetary policy, if he deems it based on Accurate, objective data serving monetary policy objectives.

Among the most prominent decisions is that the withdrawal of the dollar to the customer (if it is the case) by 75% dollars and 25% dinars and is calculated on the price of 1,200 dollars per dollar.

Likewise, the withdrawal of the dollar to the customer if the deposit is 100% is unchanged. (End)

9DC6025C-25DA-4325-AD2A-3B03E4A7C103.jpe

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Follow-up cell: The government may resort to borrowing and printing currency to provide salaries 27/03/2020   The Follow-up Cell in the Prime Minister's Office revealed today, Fri

The Central Bank of Iraq (Basra branch) for Al-Mirbad: Next Tuesday is a last date to pay the salaries of all employees March 26, 2020   The Central Bank of Iraq, Basra branch, an

I gotta idea... Pay everyone this month... Then flip the rate ... Won't have to pay anyone next month

Yota!!!

 

 

 

Document .. The central bank issues new instructions to withdraw the dollar and comments on the printing of the currency

image-89.jpg?w=560

 

Economy of the Central Bank of Iraq, the dollar printed currency

 

03/29/2020 

 

Shafaq News / The Iraqi Central Bank issued on Sunday a set of decisions regarding the withdrawal of the US dollar.

Among the most prominent decisions is that the withdrawal of the dollar to the customer (if it is the case) by 75% dollars and 25% dinars and is calculated on the price of 1,200 dollars per dollar.

 

Likewise, the withdrawal of the dollar to the customer if the deposit is 100% dollars without any change.

On the same level, an authorized source in the Central Bank of Iraq stated about what some people are talking about to some officials about the possibility of printing an Iraqi currency to avoid economic problems and so on, including the following:

 

1- The printing of Iraqi banknotes is a routine, technical procedure practiced by the central bank in accordance with the requirements of cash circulation, and printing of banknotes is a completely separate process from the cash issuance process.

 

2- No party can withdraw banknotes from the central bank unless there are funds in their accounts that cover the amount to be withdrawn.

 

 Therefore, to say the dinar does not mean any meaning other than strengthening the treasures of the Central Bank in accordance with the monetary policy, and not for any other purpose or purpose .. The Central Bank Law and Monetary Policy do not allow the issuance of cash in favor of an account without balance.

 

3- When the Ministry of Finance wishes to finance spending on the various spending units and salaries, it requests the Central Bank to strengthen its account in Iraqi dinars in exchange for withdrawing from its account in dollars.

No amount is deposited into the finance account in dinars unless offset by a withdrawal from its dollar account.

 

4- The Central Bank Law does not allow him to lend to the government, whether by printing the currency or any other way, direct or indirect, and he is entitled to deduct the treasury transfers, if they are present in the secondary trading market, as it is one of the tools of monetary policy, if he deems it based on Accurate, objective data serving monetary policy objectives.

 

image-1-53.jpg?w=560

https://www.shafaaq.com/ar/%D8%A7%D9%82%D8%AA%D8%B5%D9%80%D8%A7%D8%AF/%D9%88%D8%AB%D9%8A%D9%82%D8%A9-%D8%A7%D9%84%D8%A8%D9%86%D9%83-%D8%A7%D9%84%D9%85%D8%B1%D9%83%D8%B2%D9%8A-%D9%8A%D8%B5%D8%AF%D8%B1-%D8%AA%D8%B9%D9%84%D9%8A%D9%85%D8%A7%D8%AA-%D8%AC%D8%AF%D9%8A%D8%AF%D8%A9-%D9%84%D8%B3%D8%AD%D8%A8-%D8%A7%D9%84%D8%AF%D9%88%D9%84%D8%A7%D8%B1-%D9%88%D9%8A%D8%B9%D9%84%D9%82-%D8%B9%D9%84%D9%89-%D8%B7%D8%A8%D8%B9-%D8%A7%D9%84%D8%B9%D9%85%D9%84%D8%A9/

 

 

 

Edited by Carrello
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Information / Baghdad ..
Member of the Economic and Investment Committee, MP Nada Shaker Jawdat, affirmed on Sunday that Iraq’s resort to withdraw funds from the central bank reserves is a natural right and that it will not affect the Iraqi dinar exchange rate because it is backed by a good cover of gold and a large oil reserve, denying the government's feet To print out the paper currency.
Jawdat said in a statement to the "information", that "all the countries of the world suffer from a financial crisis, especially after the outbreak of the Corona pandemic, a decrease in oil prices and the stopping of investments, factories and international trade, and that Iraq is the largest affected in this regard", indicating that "most of the countries of the world resorted to borrowing from Its financial reserves.
She added that "the government has the right to borrow money from the central bank reserves to fill its financial deficit, just like the rest of the world." She explained that "the Iraqi government will resort to external and internal borrowing, including borrowing from the cash reserve in the Iraqi Central Bank."
Jawdat pointed out that "borrowing from the cash reserve will not affect the Iraqi dinar exchange rate because it is backed by a large reserve of gold and oil reserves," denying "the rumors raised about the government printing the paper currency to pay salaries." Ended in / 25 pm

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27 minutes ago, yota691 said:

the Iraqi dinar exchange rate because it is backed by a large reserve of gold and oil reserves,

140 billion barrels proven reserves!  That's: 140,000,000,000 x $50 a barrel = WOW -  7 trillion !

 

Thanks Yota, have missed your posts!

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3 minutes ago, DWS112 said:

140 billion barrels proven reserves!  That's: 140,000,000,000 x $50 a barrel = WOW -  7 trillion !

 

Thanks Yota, have missed your posts!


isn’t the current price of oil about $21.00..?still, that = 2,940,000,000,000!!

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5 minutes ago, Half Crazy Runner said:

2,940,000,000,000!

Almost 3 trillion ... there's the problem ! They can only rebuild the country with that amount!

There won't be any money left to line their pockets!

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5 hours ago, Jaygo said:

Your information is incorrect 

 

Ok show me the prove and then I will say i'm incorrect😏

 

my advise to you stop listening to Jeff at dinar investor 

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40 minutes ago, DWS112 said:

140 billion barrels proven reserves!  That's: 140,000,000,000 x $50 a barrel = WOW -  7 trillion !

 

Thanks Yota, have missed your posts!

 

 

7 t is nothing Maliki will spend it in one month 😄

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1 hour ago, SONIA1 said:

 

Ok show me the prove and then I will say i'm incorrect😏

 

my advise to you stop listening to Jeff at dinar investor 

I am getting my info from Laid Back and many other vet people on this site that I trust. I have been here for a long time and don’t trust many. Laid Back is a trusted member. 

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The thought process has been that Iraq May change to be the same as Kuwait which would be April 1st. The article we read yesterday maybe a clue as to Iraq actually changing to this which would hopefully bring us our elusive RV at the same time!

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So this means that we can print our own money on DV Islands a small but mighty country and get bailouts too? :D

 Welcome back Yota :woot: :woot:

3 hours ago, yota691 said:
March 29, 2020 06:17 PM

Direct: The Central Bank of Iraq issued a clarification on the possibility of printing an Iraqi currency to avoid economic problems.

 

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3 hours ago, Carrello said:

 

Hi Shelley! I don't have a bionic leg, but I am still doing great! 😎

I wish this brace was bionic !!! I think it should be off in about 2 more weeks 

isn’t it nice to see some of the originals back on the boards .... yay..... 

glad to hear your doing great , stay safe so when it’s time to dust off the old party hats  you don’t cough LOL 

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4 hours ago, DWS112 said:

Almost 3 trillion ... there's the problem ! They can only rebuild the country with that amount!

There won't be any money left to line their pockets!

 

Don't forget that they have natural gas and phosphorous too, to add to their value of natural resources along with the agricultural potential. 

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The Finance Committee denies resorting to printing currency to pay the salaries of employees

Economy | 08:50 - 30/03/2020

 
image
 
Baghdad - Mawazine News
, the Finance Committee in the House of Representatives denied resorting to printing the cash currency to pay the salaries of employees, usually it is an incorrect step and has negative consequences, in conjunction with that the Central Bank confirmed that its law does not yet allow the issuance of cash and put it in the financial account without a balance from the dollar .
Committee member Jamal Cougar said: "We do not believe that the printing of the currency will be used in order to pay salaries because this issue is not easy, as it needs to equate the printing of the currency against gold and the bank reserve of the dollar, so any printing without these conditions will expose the local currency to a loss Its real value. "
He added, "It is possible for the government to resort to internal borrowing, which is contained as this solution was resorted to during the budget of last year." Ended 29 / A 43

 

 

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30-03-2020 12:14 AM
image.php?token=a161d8ba4264f63b1f63aa185b9147f3&c=6956373&size=
 


 

Baghdad / Al-Akhbariya:
The Director General of Accounting at the Central Bank of Iraq, Ihsan Shamran, announced today, Sunday, the collection of 45 billion dinars to support efforts to combat the Corona virus in the country, indicating that the salaries of Iraqi employees are secure and do not have to worry.
Shamran said in a televised statement, followed by "Al-Ikhbaria", that "the Iraqi provinces will start spending the money of donations from the Corona Virus."
He added that "there is no reason to be pessimistic about the money situation," noting that "the salaries of Iraqi employees are fully insured," noting that "the salaries of next April are available," stressing that "the central bank will not leave Iraq in danger"
and Shamran pointed to "not We reach the stage of danger, not the stage of crisis and panic, "pointing out that" the central bank will not leave Iraq in danger. "
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7 minutes ago, yota691 said:
30-03-2020 12:14 AM
image.php?token=a161d8ba4264f63b1f63aa185b9147f3&c=6956373&size=
 


 

Baghdad / Al-Akhbariya:
The Director General of Accounting at the Central Bank of Iraq, Ihsan Shamran, announced today, Sunday, the collection of 45 billion dinars to support efforts to combat the Corona virus in the country, indicating that the salaries of Iraqi employees are secure and do not have to worry.
Shamran said in a televised statement, followed by "Al-Ikhbaria", that "the Iraqi provinces will start spending the money of donations from the Corona Virus."
He added that "there is no reason to be pessimistic about the money situation," noting that "the salaries of Iraqi employees are fully insured," noting that "the salaries of next April are available," stressing that "the central bank will not leave Iraq in danger"
and Shamran pointed to "not We reach the stage of danger, not the stage of crisis and panic, "pointing out that" the central bank will not leave Iraq in danger. "

Thank you Yota......hope all is well in your life....😉    CL

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Information / Baghdad ..
The Ministry of Finance confirmed, on Tuesday, that the salaries of employees are fully insured and there is no need to print the currency in order to pay it, noting that printing the currency needs a decision from four sides.
The Ministry's media director, Taha al-Hashemi, said in a statement to "Information", that "the news that some sites and media have circulated about printing currency without health", indicating that "printing the currency needs to issue a high-level decision from the Council of Ministers, the Advisors Authority, the Ministry of Finance and the governor of the bank Central. ”
Hashemi added, "The matter was not formally presented in cabinet meetings," noting that "employee salaries are fully insured and we do not need to print a local business to pay employee salaries." Ended / 25h

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Posted (edited)

Central Bank: We have completed the delivery of salary amounts to all southern governorates

31/3/2020

image


The Iraqi Central Bank announced the Basra branch, on Tuesday, to complete the process of providing funds in Basra and the southern governorates with funds for the purpose of distributing salaries.


The branch general manager, Qasim Raheef, said in a radio interview followed by Mawazine News, that they "completed the handing over of all amounts to the banks of Basra and the southern governorates since yesterday, indicating that the process was carried out smoothly due to their continuous work, by including them with the exception of imposing a curfew in the province." .


And Raheef stated, "The staff time during the salaries delivery period was 100% due to the urgent need in that period and to complete all related matters." 

Edited by DWS112
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Is Iraq resorting to printing currency to overcome its financial crisis?

31/3/2020

Central Bank Law does not allow him to lend to the government either by printing currency or any other way (European)

 

Adel Fakher - Baghdad 

The appearance of Muhammed Salih, advisor to the Iraqi Prime Minister, confirmed that the options to face the financial situation are heading towards the pressure of expenditures, and that the issue of printing the currency is just a proposal that is not consistent with the Central Bank Law, which confirms that the  printing of banknotes is a routine technical procedure practiced by the bank according to the requirements of cash circulation, and that the printing process Completely separate from the cash issue process.


Saleh said that the government has financial procedures that will not lead to stumbling the salaries of employees, as it is one of the priorities of the government, indicating that their options for facing the financial situation are heading towards pressure expenditures, indicating that there is a team working with the Ministerial Council to restructure state expenditures, and that the issue of printing the currency is just a proposal that does not Consistent with the Central Bank Law.


And the Central Bank of Iraq issued an explanation regarding what is being circulated from the news about the possibility of printing an Iraqi currency to avoid economic problems, in which he affirmed that any party cannot withdraw banknotes from the central bank unless there are funds in its accounts that cover the amount to be withdrawn, and therefore, does not mean To say that the dinar is of any meaning other than strengthening the treasures of the central bank in accordance with the monetary management policy, and not for any other purpose or purpose. The law of the central bank and monetary policy do not allow the issuance of cash in favor of an account without a balance.


The bank said in a statement that  when the Ministry of Finance wishes to finance spending on different spending units and salaries, it requests the central bank to strengthen its account in Iraqi dinars in exchange for withdrawing from its account in dollars, so no amount is deposited into the finance account in dinars unless a withdrawal from its dollar account is offset.
 

Noting that the Central Bank Law does not allow him to lend to the government, whether by printing the currency or any other way, direct or indirect, and he is entitled to deduct the treasury transfers, if they are present in the secondary trading market, as it is one of the tools of monetary policy, as he saw this based on data Precise objectivity serving the objectives of monetary policy

 

The government says that it has procedures that will not lead to stumbling the salaries of (European) employees

 

👉The balance of economic deficits and economist Salam Semsem asked  about the nature of the cash issue and whether it was in the normal form issued by the government in exchange for coverage with a quantity of cash and a quantity of gold, the state’s commitment to the international community, the international economy, and the International Monetary Fund, and all this is measured by the state’s economic standing and the amount of wealth.


Sumaisem told   Al Jazeera Net that the state now hints at the printing of the coin to coincide with the talk about the cash crisis and the existence of a deficit, and this means that there is a deficit in the economic balances represented by the general budget, the trade balance and the balance of payments, and this requires more money, so how can the state pay this deficit with the increasing expenses represented by salaries Wages and social benefits.👈


She also asked, "Will the printing of the currency be free of charge, and if it is, it will negatively affect the reality of the Iraqi economy through the collapse of the Iraqi dinar, which will lead to significant monetary inflation, and here the risk is possible because it will affect the classes with limited income, meaning that the amount of goods and services that it gets The individual as a result of using this income will decrease, and with it the living standards of the individual represented by the most important files such as food and medicine will decrease. " 


The value of remittances


in related context,Central Bank issued instructions concerning commission cash withdrawal to dollar, that it will regardless accounted 25% of value remittances dollars that come Iraqi banks  dinar  Iraqi, as measure to over come financial and economic crises. 


In this regard, economic analyst Dhargham Mohammed Ali explained to Al-Jazeera Net that this measure is caused by a  shortage of foreign currency caused by the decline in the price of crude oil in global markets, which is a temporary measure to cross the current crisis, indicating that it is a procedure followed in many countries that suffer from currency shortages Foreign , as for the printing of the currency, it is not possible because it will harm the economic and financial position of Iraq and float the price of the currency and create greater economic problems, he said. 

 

The Central Bank issued instructions related to the cash withdrawal commission for the dollar (Al-Jazira)

 

And on the ways to support the federal budget to cover the deficit, Muhammad Ali explained that this is done by giving away all unnecessary forms of spending, reducing the salaries of special grades and stopping the  statements  completely.


The Iraqi currency went through several phases, the royal edition bearing the image of King Faisal and continued until 1958, the edition bearing the Republican emblem until 1978, and the international edition, called the Swiss edition, which was printed at the  British company  Delaw and   Soviet Exports until 1990.


Then, as a result of the circumstances of the economic blockade that Iraq passed through, the Central Bank of Iraq printed the banknotes at Dar Al-Nahrain for printing, and in the beginning of 2003 the central bank withdrew all local and international banknotes named Swiss edition and put the new series of Iraqi dinars consisting of seven categories that were printed with specifications High security, while  continuing  to develop these specifications, which prevents the ability to counterfeit or counterfeit them.


Source: Al-Jazeera

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4 minutes ago, DWS112 said:

normal form issued by the government in exchange for coverage with a quantity of cash and a quantity of gold

Heck! Iraq has 150 billion barrels of proven oil reserves valued in the trillions of $

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