Al-Abadi: We will face a problem with paying salaries next month, and printing currency is one of the options

[Mary B]

Al-Kazemi receives the Special Representative of the World Bank Mission in Iraq

 

 

 

Prime Minister Mustafa Al-Kazemi, Special Representative of the World Bank Mission in Iraq, received Ramzi Numan.

Ways were discussed to coordinate work between the Iraqi government and international institutions to overcome the economic crisis, and work to launch economic reform efforts that would encourage investment and reconstruction, enhance the service reality, and provide job opportunities.

 

https://www.thebaghdadpost.com/ar/Story/194965/الكاظمي-يستقبل-الممثل-الخاص-لبعثة-البنك-الدولي-في-العراق

[Floridian]

@ChuckFinley @Laid Back

 

I sure hope you guys are right, but that's not how I'm understanding what Abadi said.  I always liked the guy but now I'm disappointed in this:

 

He added that "Turkey and Iran are heading to float their currency now and floating the currency produces inflation and raises prices that harm the low-income as well as printing the currency one of the options of the current government with reducing spending", noting that "reducing the value of the Iraqi dinar raises the price of imported goods and supports the local product and thus we encourage the local industry."

 

To me, this sounds like he wants to lower the price of the Dinar.  How much lower can it get?????

 

 

[Mary B]

The picture is from the internet

The smart petrol card "without balance" ... and the government recognizes and justifies!

5/12/20

---

After the government's decision to lift subsidies on gasoline for cars with a capacity of "2000 CC" and more, Syrians were surprised by their inability to purchase gasoline via a "smart card", even though their cars have a capacity of less than "2000 CC".

The director of the hydrocarbon company, "Mustafa Hasawiya", in a statement to Al-Watan newspaper, admitted that "they also have complaints in this regard, and that queues of people present their papers to correct the cards."

On the solution, Hasawiya said, "Citizens have to wait until a website is prepared to enable them to submit requests to amend their cards, or they can submit their papers manually to the Hydrocarbons Company ."

The required papers are a copy of both the mechanics, the card and the ID, and the application needs about three days to amend.

The Syrian Ministry of Oil stopped , as of Sunday, May 9, the supply of # private cars with an engine capacity of "2000 CC" and above with the # gasoline subsidy chip .

The Ministry of Oil # sells gasoline at a subsidized price through the "smart card", according to chips that are 100 liters per month for private vehicles, 25 liters for motorcycles, and 350 liters per month for public "taxi" cars.

And raised the Ministry of Interior Trade in the Syrian government, as of the beginning of last March, the prices of gasoline, as it set the price of a liter # gasoline octane 90 caliber, and supported by 250 # pounds , after it was 225 pounds.

Likewise, the price of one liter of 90-octane caliber (not supported) was 450 liras, and it was 425, and one liter of octane 95 was 575 liras, after it was 550 liras.

It is noteworthy that the number of vehicles registered in Syria as of the end of 2010 reached 2 million and 51,977, of which one million and 501,301 are running on gasoline and 55,676 vehicles operating on diesel, according to the Central Bureau of Statistics.

 

https://7al.net/2020/05/12/بطاقة-البنزين-الذكية-بدون-رصيد-والحك/

[horsesoldier]

1 hour ago, Floridian said:

@ChuckFinley @Laid Back

 

I sure hope you guys are right, but that's not how I'm understanding what Abadi said.  I always liked the guy but now I'm disappointed in this:

 

He added that "Turkey and Iran are heading to float their currency now and floating the currency produces inflation and raises prices that harm the low-income as well as printing the currency one of the options of the current government with reducing spending", noting that "reducing the value of the Iraqi dinar raises the price of imported goods and supports the local product and thus we encourage the local industry."

 

To me, this sounds like he wants to lower the price of the Dinar.  How much lower can it get?????

 

 

 

Guess we’ll find out where bottom is if/when this float talk goes real

[Mary B]

The Cabinet issues a number of decisions and stresses the need to expedite the approval of the budget

 12/05/2020

 

  

Information / Baghdad

On Tuesday, the Council of Ministers issued several decisions, including reducing and rationalizing the administrative structures of the state and expediting the legislation of the general budget law.

The Information Office of the Prime Minister stated in a statement received / information /, that "the Council of Ministers held its second regular session, today, headed by Prime Minister Mustafa Al-Kazemi."

He added that “Al-Kazemi opened the session with a speech in which he emphasized that this government is the government of difficult challenges, the most important of which is the economic challenge, fighting poverty and unemployment among young people, and the fair distribution of wealth.” He called on ministers and government officials to “stay away from compliments, favoritism, political interference and work to develop state institutions and not work Political. ”

The Prime Minister reiterated, according to the statement, “his emphasis on protecting the right to demonstrate and not tolerating any aggression against them, and that the government aims to achieve their legitimate aspirations”, stating: “We will not be courted at the expense of the dignity of the citizen and the interest of the country, and we work to save what can be saved, confront crises and diversify State resources. ”

On the work of the armed forces, Al-Kazimi stressed that "the heroic army and security forces have endured a lot, and the prestige of the military and security institutions must be restored."

The statement pointed out that “the cabinet issued a number of decisions, including reducing and rationalizing the administrative structures of the state through the provision by each government agency of its vision in this field, and taking appropriate measures to legislate the laws required for the success of the e-government and the ministries and government agencies to accelerate their procedures to automate Its work, especially in the field of customs and tax, and the submission of monthly reports on percentages it submits to the General Secretariat of the Council of Ministers.

He continued, “It was decided to re-examine the draft laws related to fighting corruption, and to activate the measures to combat it and strengthen their efficacy, and to emphasize the strengthening of the role of the institutions concerned with that of the Integrity Commission and the Federal Financial Supervision Bureau in coordination with the General Secretariat of the Council of Ministers, and emphasizing the freedom to exchange information and the right to obtain it By expediting the legislation on the right to obtain information. ”

The statement pointed out that "the Council decided to assign the Ministry of Planning in coordination with the relevant authorities to review instructions for implementing government contracts in a manner that ensures updating the standards adopted in the awarding of tenders, and also to update the standards adopted in the selection of investment projects, and provided the Federal Service Council with appropriate job possibilities in order to take its role and practice His duties. "

He pointed out that "it has been approved that the Reconstruction Fund for the areas affected by terrorist operations implement mobile hospitals to quarantine and treat patients with HIV in the regions that are agreed with the Ministry of Health and the provinces through the grant provided by the Federal Ministry for Economic Cooperation and Development through the German Development Bank and the adult It is (15,000,000) fifteen million euros.

The statement pointed out that "legislation for the general budget was expedited in line with the requirements of the financial situation, low oil price level and diversification of budget sources, and he urged the Ministry of Oil to accelerate the completion of the oil and gas law project, as well as the Ministry of Labor and Social Affairs in coordination with the Ministry of Planning and the Ministry of The Ministry of Finance studied the expansion of the base covered by the Social Protection Law by improving the mechanism of inclusion by demographic targeting by adopting poverty data and social research and the study is presented within a period of one month.

The statement continued, “It was decided to form an emergency cell for financial reform, and to form a cell to manage the financial situation in the light of the current financial crisis and to develop the necessary solutions to achieve financial reform and improve the performance of financial institutions. The cell will be headed by the Prime Minister and he may authorize the Minister of Finance to manage the sessions in his absence and membership The Minister of Finance, the Minister of Foreign Affairs, the Minister of Planning, the Governor of the Central Bank, the Prime Minister’s advisers whom he designates, the Secretary General of the Council of Ministers, and a representative of the General Secretariat of the Council of Ministers.

He stressed the need for the “cell to ensure the provision of financial liquidity, and to take decisions regarding financial reform through rationalizing expenditures, maximizing resources and reforming financial institutions, including restructuring them, and developing financing plans for reconstruction, development and investment projects, including resources and mechanisms for financing outside of spending Government, as well as improving procedures and automating systems in financial institutions. ” 25 n ended

 

https://www.almaalomah.com/2020/05/12/473844/

[Mary B]

K-Card and retirement on a new "suspicious" mission .. Integrity details the process of seizing in an electronic payment company

2020-05-12

Yassin Iraq: Baghdad

The Investigation Department of the Federal Integrity Commission announced today, Tuesday, the appointment of the retirement director of Nineveh Governorate, the director of the representative of the Office of Public Administration for the Northern Region of a government bank, the director of an electronic payment company and (16) accused of the company's employees in the province.

The Investigations Department at the commission said, in a statement that it received “Yas Iraq” a copy of it, that “the details of the seizure process carried out by the staff of the Nineveh Investigation Directorate according to a judicial memorandum, which included the move of the Directorate’s team to the headquarters of one of the electronic payment companies and the related departments and after conducting the investigation and investigation regarding stopping Paying the pensioners' salaries, stopping the K-Card, and forcing the retirees to replace the MasterCard in exchange for deducting more funds than the scheduled, the team was able to arrest the accused.

The statement added, “The accused are each of the Nineveh Retirement Director, the director of the representative of the General Administration Office for the northern region of the state bank, the director of one of the bank’s electronic payment companies, and (16) of the company’s employees in the governorate, according to the provisions of Article (340) of the Penal Code ”

He continued, that the Investigation Department “organized a fundamental arrest record of the seizures in the operation, and presented the company of the accused with the investigating court judge specializing in integrity issues in Nineveh; To take appropriate legal measures. ”

 

 

https://yesiraq.com/كي-كارد-والتقاعد-في-مهمة-مشبوهة-جديدة/

[Mary B]

Iraq burns millions of dollars in the air in just two months ... waste has reached the best types of gas

2020-05-12

Yassin Iraq: Baghdad

The Iraqi gas file remains the most mysterious and foggy in years, while while burning natural and dry gas in the air, it imports daily 32 million cubic meters of gas from Iran in addition to importing electricity.

Iraq burns dry gas and imports it too !!

Economist Nabil Al-Marsoumi said in a brief article that I followed Iraq, “For several decades, national and foreign oil companies have burned large quantities of natural gas accompanying the production of Iraqi oil instead of investing and manufacturing it, but that the burning extends to dry gas, which is a final product of raw gas.” It is used in the production of electric energy, as this represents a new waste of gas wealth and Iraqi money, as production reports for the South Gas and Basra Gas companies indicated, as stated in the Financial Supervision Bureau report for the year 2019, that large quantities of dry gas were burned amounting to 670 and 1317 mqqm (million standard cubic feet) during Monthly September and October only in 2018, while Iraq imports dry gas at a rate of more than 14 million cubic meters per day, which led to a large financial loss for Iraq estimated at about $ 22 million in just two months.

Adviser to the previous government

Abdel Hussein Hanin, the economic advisor to the head of the previous government, Abdel Mahdi, said in a newspaper article, he admitted by saying that I have been trying for a while not recently to get close to Iraq’s actual need for proven gas and reserves and the possibility of investing Iraqi gas, and I hesitated to go into the numbers because of the uncertainty that surround This file is in good faith, or perhaps intentionally, and the serious differences between what we hear or read in our official documents and global statistics, including the annual bulletin of BP, which provides annual statistics on the energy sector of all kinds and uses throughout the world.

He added, from a practical point of view, Iraq will still need to import more than 1000 maqkam (one million cubic feet standard from abroad for at least the next three years in the event that the Ministry of Oil is able to implement all of its plans drawn on paper, namely that the productive capacities reach the target set and that is 3500 mqmq / day at the end of the year 2022, which means that Iraq will be able to invest a large part of the available reserves in the gas reservoirs in addition to investing the gas accompanying to provide the largest part of the actual need for dry natural gas until 2020, which is estimated at 4500 mqqq / day which corresponds to the production 18,000 MW of electrical energy product It is from the total generating capacities designed to work on natural gas fuels where it is hoped that the accreditation of gas units will be stopped from relying on crude oil, gas oil or fuel oil, meaning that all of our stations designed to work on gas (ready to work or still under construction) will operate With gas,

The reserve for natural gas in Iraq, installed as a reserve, is currently in the twelfth series globally at (125.6) trillion standard cubic feet, according to the annual statistic for the year (2018) issued by the company (BP), while it amounts to 131 trillion cubic feet, according to Ministry data Oil, theoretically, and if we consider that the gas will be directed to electricity only, it is sufficient to produce 33,000 megawatts of electricity (gas-powered units) for a period of (60) years at a rate of consumption of 5500 mqm per day provided that all gas stations are converted to the combined cycle.

Iran exports to Iraq

Iran announced, last month, that it exports 32 million cubic meters of gas daily to Iraq.

The Iranian "IRNA" agency quoted the director of distribution in the National Gas Company, Mahdi Jamshidi Dana, as saying that Iran's gas exports to Iraq amount to 32 million cubic meters per day.

Iraq between America and Iran

The United States has repeatedly granted exemptions to Baghdad to continue importing Iranian gas and electricity, and the latest exemption has been limited to the Kazi government for only 4 months.

And last month, Minister of Electricity Louay Al-Khatib, a week before the end of his government duties, said his country would need three to four years to stop importing energy from its neighbor.

In statements to S&P Global Platts, which is part of Standard & Poor's Credit Ratings, oil and gas projects in Iraq will take several years before they reach their production capacity and stop dependence on Iranian gas, Al-Khatib said in statements to Standard & Poor's Global Platts.

He explained that "these three to four years must be a timetable without interruption with a government that has full executive authority and without any interference from political entities and in an environment that welcomes investments and multinational participation."

It was expected that Iraq would invest $ 10 billion in oil and gas projects to end its dependence on Iran within four years. However, no progress was made on the projects.

Iraq Gas

With the United States, Russia and China competing to gain a foothold in the Iraqi oil and gas industry in the north and south, Iraq last year expressed its desire to have one or more foreign partners in the Mansuriya gas field in Diyala province, east of Baghdad.

Author Simon Watkins said in his report published by the American Oil Price last year that the Mansuriyah field had estimated reserves of 4.6 trillion cubic feet of natural gas, and is expected to reach a peak of production of about 325 million cubic feet per day.

The writer stated that the United States considers encouraging Iraq to improve the gas flow to reduce its dependence on Iran as a major matter. As for Russia, Rosneft essentially contracted with the Kurdistan region of Iraq in November 2017 to expand gas investments, which means that assuming that Russia has power in other areas of Iraq will also give it a lot of strength.

The writer indicated that securing Russia’s oil and gas contracts throughout Iraq would allow it to establish invincible political influence across the entire Shiite Crescent region in the Middle East, starting from Syria via Lebanon (thanks to Iran) then Jordan and Iraq (with Iran’s help as well), and through Iran itself , All the way to Yemen (via Iran).

From this base, Russia can effectively challenge Saudi Arabia, the United States' oil, gas and political ally in the region. Simultaneously, China is working on its own agenda with Iran, which is the South Pars field in phase 11 and the West Karon oil fields.

The writer stated that Iraq, like Turkey, did not commit to take a specific destination, either Russia or the United States, but rather changed its alliance each time according to what suits its interests, and the same applies in a small way to the Mansuriyya field. In fact, Turkey was a major player in the Mansuriyya field until the middle of last year by owning 37.5% of the national oil company “Turki Petulerei Anunim Ortakeliji” (TPAO), along with 25% of the “Oil Exploration” company, and 22.5% of the company "Kuwait Energy", and 15% of "Kogas" South Korea.

 

https://yesiraq.com/العراق-يحرق-ملايين-الدولارات-في-الهوا/

[Donziman]

So where does anyone think the Trillions of dollars the USA government is handing

out to people and businesses comes from. Twenty percent unemployment means 

no income tax coming in to the treasury. The states are in trouble because they count

on sales tax. Guess what,no one is buying expensive items.My grand kids are going to be 

paying for these hand outs for most of their lives....PRINT PRINT AWAY...

[Engine1]

11 hours ago, Laid Back said:

Thanks for your input Engine1, they are moving to an electronic banking system, with a e-card no need a thick wallet to carry 200,000  X  5 dinar notes.

 

Agreed jcav, 👍🏼🙂
 

Laid Back you were the one hoping they were talking about printing lower denominations, now e-cards 

[Engine1]

21 hours ago, Laid Back said:

“he pointed out that printing the currency is one of the options of Mustafa Al-Kazemi’s government.“

 

I hope Abadi is referring to the Lower denomination notes.

 

 

 

 

[Laid Back]

1 hour ago, Engine1 said:

Laid Back you were the one hoping they were talking about printing lower denominations, now e-cards 

Engine1 thanks for your comment.

Even with e- Banking and e-card they still need to rollout Lower denomination notes.