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WARNING!!!  If you don't like reading speculation about why the RV may be imminent, please just skip this post!!!  That way you won't have to get upset and you also won't rain on the parade of those o

In 2016 when Trump won, I felt for those who were shocked and devastated even though I rejoiced.  Will have no sympathy for them this time.

From Delta - Translating Comments On Iraqi Social Media ...               THESE ARE MESSAGES FROM IRAQI SOCIAL MEDIA TO THE NEW CBI GOV..........   "We hope tha

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Article From Delta (No Link) ...

 

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Finance Minister Ali Allawi expected the salary crisis to continue, while he presented a number of reasons.

 


"We are forced to face the problem of salaries" on a monthly basis, "Allawi said in a televised interview that he followed on the eighth day, as oil revenues are no longer sufficient and cannot cover half the value of salaries.

He added that "the amount rounded up from the previous government exceeded a trillion dinars a little, meaning that the current government did not receive only a very small amount of the previous one, and therefore the government came in the month of May and it is loaded with financial burdens, especially how to secure salaries."

He pointed out that "if borrowing exceeds certain figures, it will have negative repercussions on the economic situation of the country, especially with regard to material prices and paves the way for inflation, and it must be with a certain limit, not that the borrowing be endless."

 

He stressed that "the current government requested an open ceiling for borrowing this year to pay salaries and urgent expenditures, and the House of Representatives stipulated that the internal borrowing does not exceed $ 15 billion and the external $ 5 billion, and according to the indicators, it is unrealistic because it is insufficient as the borrowed money ran out within 3 months and the crisis has returned."

And that "the salaries of employees are not the problem and it is reasonable, but the allocations that reach 400% of the value of the salary in some ministries and the allocations must be reconsidered because it is the problem and not the salaries."

The minister, Ali Allawi, said that “the employee’s productivity is very low and reaches 0% in some departments,” indicating that “there must be a return to the state from the services provided by the employee and this does not exist, and non-productive employees must also be transferred to productive projects for investment. "Their efforts and we will present a project to transfer them from another place."

He continued, “The Ministry of Finance paid the salaries of September after reviewing the financial engineering, and we are now at a crossroads. There must be financing to bridge the salary deficit and there are 3 solutions. The first is to increase imports and this is linked to the value of oil exports and it is not encouraging because it does not exceed the $ 15 billion until the end Year ”.

 

He added, "In return, we need financing of at least 58 trillion dinars to cover the ruling expenses. The second solution is to reduce expenditures and the third is to find a way to finance the deficit."

Regarding customs funds, the minister replied by saying that "the issue is related to imports, and it has been very less due to the Corona crisis," indicating that "there is a large part of Iraq's internal imports that are exempt from fees and what is entered through investment is also exempt, and this means that no resources are achieved for these two reasons."

He continued, "The percentage of resources that enter through customs does not exceed 15% of the value of what is imposed due to the above reasons," saying, "What we expect does not exceed the 4 billion dollars annually, and therefore customs will not be a major source of state funding."

"As for taxes, their base is very narrow, and those who pay most are the employees," he said, noting that "70% of the private sector is unorganized and cannot be collected because most projects are small and there is no culture of paying taxes."

 

Regarding what is being raised about the existence of an expected change in the exchange rate, the minister stressed that “changing the exchange rate of the dinar against the dollar must be done in agreement with the Central Bank and the International Monetary Fund. 

Presenting numbers is currently a sensitive issue. 
Reducing the value of the dinar will have positives and negatives and will help us financially in the first period. But we must contain its repercussions, especially inflation. "

He cautioned that "reducing the value of the dinar will create real competition and activate the industrial and agricultural sectors in Iraq."

He pointed out that "the year 2020 witnessed an ill-considered increase in the value of what is paid for salaries if it doubled to the level of half from the previous year, and rose from 40 billion dollars annually to 65 billion."

 

DELTA

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Statement by KRG spokesperson on recent reports regarding future management of Kurdistan Region’s oil and gas sector

/media/1537/krg_logo-white-background_3.jpg?anchor=center&mode=crop&width=1200&height=630&rnd=132229943860000000

Erbil, Kurdistan Region, Iraq (GOV.KRD) - The government notes recent reports regarding a proposal made to the Kurdistan Regional Government by a senior official in the Federal Government of Iraq on the future management of the oil and gas sector in the Kurdistan Region.

These reports will not distract from the Kurdistan Regional Government’s priorities in our ongoing and constructive discussions with the Federal Government.

Our focus remains on finding practical and legal solutions on oil and gas that protect the rights of the people of the Kurdistan Region and Iraq.

These solutions should be based on, and, indeed, respect the Constitution’s requirements for a fair and equitable distribution of Iraq’s oil and gas revenues. This will help lay a solid foundation for cooperation and a genuine partnership between the Kurdistan Region and the Federal Government in ways that benefit the peoples of Kurdistan and all of Iraq.

14 Oct 2020
Dr JOTIAR ADIL
KRG Spokesperson

 

 

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Central Bank: a decline in the accumulated quantities of foreign currency


Wednesday 14th October 2020 - 08:14

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Baghdad - conscious

 

The Governor of the Central Bank of Iraq, Mustafa Ghaleb Makhaif, suggested that foreign reserves in the bank would decline due to the increase in import financing and the decline in dollar revenues from the Ministry of Finance.
 
"The decline in the global price of oil and the reduction in production in Iraq, based on the OPEC agreement, led to a decrease in crude oil revenues and thus the dollar amounts that were the Ministry of Finance," he told Al-Sabah. It sells it to the Central Bank of Iraq in exchange for the Iraqi dinar, which it uses to finance its expenditures locally. " 
 
The governor added, "This led to a decline in the accumulated quantities of foreign currency at the central bank, in addition to the process of discounting the securities issued by the Ministry of Finance, for the purpose of bridging the deficit witnessed by the government in financing its spending, especially the current spending by the Central Bank of Iraq for the benefit of government banks."
 
He noted, “Most of the current spending will turn into a consumer demand that ultimately represents a demand for the US dollar, and with the central bank meeting this demand to finance imports, foreign reserves are expected to witness a decline in addition to the decline resulting from the decrease in oil revenues if the current data do not change. ".

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148623.jpg.fb3410aa2d2a41ba0cb20a90a738221a.jpg2020/10/15 13:38

Baghdad raises the region's share of white oil to 150 million liters

https://almasalah.com/ar/news/199104/بغداد-ترفع-حصة-الاقليم-من-النفط-الأبيض-إلى-150-مليون-لتر

 

Baghdad / Obelisk: The Governor of Sulaymaniyah, Haval Abu Bakr, announced, on Thursday, October 15, 2020, that the Federal Government had issued a decision to increase the Kurdistan Region’s share of white oil to 150 million liters, instead of 50 million liters.

Abu Bakr said in a statement received by Al-Masala that the decision came after the recent meeting of the governors of Erbil, Sulaymaniyah and Dohuk with the Ministers of Planning and Immigration and Federal Displacement, and the request of Sulaymaniyah Governorate and the Kurdistan government to increase the region’s share of white oil.

He added that the federal government and the Ministry of Oil decided to increase the quota from 50 million liters to 150 million liters, to be distributed in three shares.

Earlier, oil experts explained, on Tuesday, October 13, 2020, that the Al-Kazemi government is the first cabinet to put in place correct and scientific steps to address the oil management crisis with the region, as the Iraqi Oil Minister Ihssan Abdul-Jabbar proposed Tuesday, October 13, 2020, the establishment of a company to manage extraction And the export of crude oil in the Kurdistan region, while the parliamentary bloc of the Kurdistan Democratic Party announced, on Tuesday, October 13, 2020, support for the oil ministry’s proposal to establish an oil company in the Kurdistan region, describing it as a "step in the right direction."

Abdul-Jabbar said in a press statement, that the directions of the Kurdistan Regional Government negotiator are in harmony with the directions of the federal government to reach a formula for constitutional solutions to the disputes over the production and export of crude oil in the region.

He added: I submitted a proposal to establish an oil company in the Kurdistan region to manage the extraction and export operations in the fields of the region, and it is linked technically and administratively to the presidency of the region and the Federal Ministry of Oil, in order to reach a final agreement between the federal government and the region similar to the oil companies operating in the producing provinces.

He pointed out that there are positive understandings between the central government and the Kurdistan region regarding the production and export of oil produced in the fields of the region within the ongoing negotiations between the two parties related to the oil policy in the region in accordance with the constitution.

On Thursday, September 10, 2020, an informed source stated that Prime Minister Mustafa Al-Kazemi and the President of the Kurdistan Regional Government, Masrour Barzani had reached many understandings about the pending files.

The Kurdish media network Rudaw and its subsidiary Al-Masala quoted the source as saying that the Iraqi Prime Minister Mustafa Al-Kazemi and the President of the Kurdistan Regional Government, Masrour Barzani, reached understandings about the outstanding issues between Baghdad and Erbil, especially in the oil, energy, budget and border crossings files, indicating that a number of Minor issues were referred to the relevant committees for follow-up

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Just now, 6ly410 said:

The Kurdish media network Rudaw and its subsidiary Al-Masala quoted the source as saying that the Iraqi Prime Minister Mustafa Al-Kazemi and the President of the Kurdistan Regional Government, Masrour Barzani, reached understandings about the outstanding issues between Baghdad and Erbil, especially in the oil, energy, budget and border crossings files, indicating that a number of Minor issues were referred to the relevant committees for follow-up

 

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The Central Bank presents its vision for reforming the banking sector

Thursday 15 October 2020 130

The Central Bank presents its vision for reforming the banking sector
 
 Baghdad: Hazem Muhammad Habib
 
 
A few days ago, the Central Bank of Iraq put forward a vision to reform the reality of the banking sector in the country to strengthen the financial stability system based on competition.
The governor of the bank, Mustafa Ghaleb Makhaif, told Al-Sabah that “the future vision for the work of the Central Bank of Iraq is centered in light of the economic crisis through the goals it seeks to achieve and specified under its amended Law No. 56 of 2004, the most important of which is (ensuring the stability of domestic prices And the promotion of a stable financial system based on competition), to continue achieving the strategic objectives set out in the 2016-2020 plan. ”
The governor explains, “In order to do so, the bank recently proposed the terms of the reform paper for the banking sector, which has been initiated now, because of its importance in developing banking services and products in the next stage, and through it the banking sector will be supported to advance its current reality. Of the specific criteria adopted by the bank and on the basis of which the operating banks were classified, ”indicating that“ this classification will be reviewed by the end of this year, and this will continue for the following seasons. ”
The governor of the Central Bank says: “This step comes within the framework of strengthening confidence in the banking sector and improving the quality of services provided to the public, as well as enhancing competitiveness in the Iraqi banking sector.” Their conditions and the payment of their customers' dues, ”stressing that“ this classification will be an opportunity for these banks to prove their seriousness in achieving the requirements of reform and pay the dues of depositors and shareholders owed by those banks
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Thursday، 15 October 2020 06:57 PM

Finance minister says Iraq's leaders willing to make reforms

gallery_xlarge

https://www.thebaghdadpost.com/en/Story/50187/Finance-minister-says-Iraq-s-leaders-willing-to-make-reforms

 

Iraq's finance minister said Thursday there is growing political will to undertake drastic reforms needed for the country to tackle a daunting liquidity crisis, which has pushed Iraq to the brink of collapse.

There is more will now than there was five months ago,” Finance Minister Ali Allawi told The Associated Press. “Now, I think there is recognition that unless oil prices go up miraculously, this is something we have to cope with and manage.”

Low oil prices have slashed state coffers in the crude-exporting country by nearly half, and over-reliance on oil has limited the government's ability to seek out other income.

A widening month-to-month deficit has cast uncertainty over how future payments will be made for public wages, external debts and essential imports of food and medicine.


Iraq's unsustainable economy, laid bare by fiscal pressures spurred by spiraling oil prices and the coronavirus pandemic, is a long-standing problem that has flummoxed reformists for over a decade.

This week, Prime Minister Mustafa al-Kadhimi's government issued a much-anticipated 95-page “white paper” for economic reform that, if implemented, would prompt a drastic overhaul of the entire system within three to five years.

“It is a paper designed to create a strategic and policy framework for a new Iraqi economy,” said Allawi. "In the end of this period of change and reform ... we are supposed to have a restructured and more dynamic economy, that is the point of it.”

The absence of support from major political elites has undermined similar efforts in the past. Al-Kadhimi's government still depends on an endorsement by Parliament for the vision to gain steam.
“There is less denial, before it was all denial," said Allawi.
With oil prices not expected to rebound in the near-term, only reforms will see Iraq avoid an economic catastrophe, top officials in al-Kadhimi’s government, including Allawi, have repeatedly said. The future of the project faces a major test: Parliament endorsement in the form of a binding resolution or legislation.

Later, aspects of the plan outlined in the paper will be incorporated into the 2021 budget, said Allawi, something that will also require a parliament vote. Government subsidies in the electricity and oil sectors will face particular scrutiny.

In September, Iraq made $3.16 billion in oil exports, which accounts for 90% of state revenue — less than half of the $7 billion needed to pay for salaries, pensions, imports and debts. September salaries were delayed and the payment of October wages depends largely on the government borrowing internally.

A previous bill allowing for $12 billion in internal borrowing has been used up; a new one, asking for $35 billion, faces a parliament vote.

“I hope parliament will approve it,” said Allawi of the bill. “If it doesn’t, we have potential for other alternatives, but it will be more difficult.”


Iraq's dollar reserves stand at $53 billion.

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The third announcement circulated by the Central Bank of Iraq to all Iraqi banks around the Arab Week for Financial Inclusion. Progress in financial inclusiveness indicators accelerated using electronic payment tools inside Iraq as it facilitates the electronic transfer of funds, which saves time and effort for everyone, and reduces the exchange of banknotes that are considered a transmission of infectious diseases and viruses.. and The Central Bank of Iraq has adopted an electronic payment strategy by cooperating with the public and private sectors to improve financial inclusiveness, which is one of the indicators of growth of the country's economy through improving and accelerating financial and economic services. The year 2020 carried out a progressive model in the region to meet the needs of bankers by developing the Iraqi monetary policy infrastructure, led by the Central Bank of Iraq. #اسبوع_الشمول_المالي #البنك_المركزي_العراقي #المصرف_العراقي_للتجارة
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4 hours ago, 6ly410 said:
Transferring money through R.T.G.S Between banks operating in Iraq in minutes! Find out the details through the video: #cbi #IDB_Iraq #عنوان_للتميز
Translated

To bad I can’t read the lingo!

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Comments By MilitiaMan After This Article Followed By Additional Article Portions That He References ...
 

:D  :D  :D 

 

Central Bank Governor: We Have Started Implementing The Banking Sector Reform Plan

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LINK 

15th October, 2020


The Governor of the Central Bank of Iraq, Mustafa Ghaleb Mukhaif, confirmed that a few days ago, he presented a vision to reform the reality of the country's banking sector to strengthen the financial stability system based on competition.

The governor of the bank said in a statement reported by the newspaper "Al-Sabah" and its independent newspaper today, Thursday, that "the future vision for the work of the Central Bank of Iraq is centered in light of the economic crisis through the goals that it seeks to achieve and specified under its amended Law No. 56 of 2004, the most important of which is (guarantee) Domestic price stability and the promotion of a stable financial system based on competition), to continue achieving the strategic objectives set out in the 2016-2020 plan.

The governor explains, “In order to do so, the bank recently proposed the terms of the reform paper for the banking sector, which has been initiated now, because of its importance in developing banking services and products in the next stage, and through it, the banking sector will be supported to advance its current reality. Of the specific criteria adopted by the bank and on the basis of which the operating banks were classified, ”indicating that“ this classification will be reviewed by the end of this year, and this will continue for the following semesters of the year.”

The governor of the Central Bank says: “This step comes within the framework of enhancing confidence in the banking sector and improving the quality of services provided to the public, as well as enhancing competitiveness in the Iraqi banking sector.” Their conditions and the payment of their customers' dues, ”stressing that“ this classification will be an opportunity for these banks to prove their seriousness in achieving the requirements of reform and pay the dues of depositors and shareholders owed by those banks.”  


The Prime Minister spoke about competition.

The Finance Minister spoke about competition.

Now the CBI Governor is speaking about competition.

Competition is a key component of a market economy.

Looks like the Central Bank of Iraq has had the ear fo the IMF.

The reform paper terms are initiated now..

The terms or basis has to be applied when international.

That is all about what is expected next as in what is to follow..

Yep, that is implementation of the basis..

Read rate or value.. Either works for me.. lol ~ MM
 

 - MilitiaMan

 

----

"Regarding what is being raised about the existence of an expected change in the exchange rate, the minister stressed that “changing the exchange rate of the dinar against the dollar must be done in agreement with the Central Bank and the International Monetary Fund. Presenting numbers is currently a sensitive issue. Reducing the value of the dinar will have positives and negatives and will help us financially in the first period. But we must contain its repercussions, especially inflation. "

He cautioned that "reducing the value of the dinar will create real competition and activate the industrial and agricultural sectors in Iraq."

----

The Prime Minister chaired the emergency competition and its meetings were moderated by the Minister of Finance, and included representatives of the economic ministries and major state institutions concerned with the issue, including the Ministry of Finance and the Central Bank of Iraq. The cell held more than 20 meetings between May 2020 and August 2020, and received detailed statements and reports from all concerned authorities in the country as well as from representatives of the private sector. The cell has finished preparing its report, known as the “White Paper,” referring to the approach followed in it, whereby the government submits its recommendations on the main issues with the aim of crystallizing a common basis that can be agreed upon and approved,followed by the presentation of the necessary legislation and implementation procedures accordingly.

----

Competition fosters economic welfare and makes markets work for development. The World Bank Group supports clients in promoting and implementing pro-competition rules in key sectors, deterring anticompetitive business practices, and minimizing distortive government interventions in markets.

https://www.worldbank.org/en/topic/competition-policy

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10-16-2020   Newshound Guru MilitiaMan   ...When they say "reducing the value of the Dinar", they mean the reduction of the three zeros from the exchange rate. They are not going to be devaluing the currency.  By "reducing the zeros from the exchange rate" (raise the value) allows them to go into the or a market economy where the real competition is.  It will activate the industrial and agricultural sectors when doing so. imo...This supports they are at that final stage to set that gem in place. ...It is the FINAL REPORT and they are now to have or have presented the necessary legislation to proceed with implementation procedures. This is very good indeed! I suspect they have every intention now with all the work done and sorted accordingly, we are in a very good place to see the golden ring. ~ imo.

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Comments Following From MilitiaMan ...

 

:D  :D  :D 

 

 

LINK

Deputy explains the reasons for the high price of the dollar against the dinar
 

Deputy explains the reasons for the high price of the dollar against the dinar

 

16th October, 2020


On Friday, a member of the Parliamentary Finance Committee, Naji Al-Saeedi, revealed the reasons behind the high exchange rate of the dollar against the dinar in the local market.

Al-Saeedi said in an interview with Alsumaria News, "Any country that is exposed to a financial policy crisis, its monetary policy will be affected in turn," indicating that "Iraq Today, it operates according to a fixed exchange rate system, and it is very exaggerated and supports the external product, not the local."

Al-Saeedi added, "The shift from the fixed exchange rate to the creeping exchange rate, especially in periods of financial instability, will have a very negative impact on the expectations side, as if the price is raised to a point or two, it may affect four or five points in the market and this is for him." Negative effects on low-income people and the simple citizen," stressing that "the use of inflationary financing or the new monetary issuance as the government borrowed treasury bonds from the central bank, the latter did not use the existing hard currency reserves, but rather used the new cash issue."

He pointed out that "this measure of the central bank raised the monetary mass in Iraq from 56 trillion dinars to approximately 80 or less trillion dinars and this increase leads to monetary inflation and continuing with it leads to an increase in the exchange rate of the dollar towards the Iraqi dinar and this is a very natural thing in monetary policy, as the new monetary issue leads to the exchange rate of the dollar, given that The government did not use real resources to finance the deficit, but rather inflationary resources.

”Al-Saeidy stressed, “This procedure is similar to what the previous regime used to do, and it is contrary to Central Bank Law No. 56 of 2004 in its Articles 32 and 28.”


 

So it appears they have issued bonds with a new cash issue.

That would seem to be at a new rate too.

As they were not very successful in selling bonds (if I recall) in the past while at a program rate.

Again this is an example of using more of a negative slant with verbiage while telling us the positive.

If they sold Bonds with a new cash issue and not at a program rate, then they'll be exposing that new cash issue in short order... imo.. ~ MM
 

 - MilitiaMan

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Comments Following From ‘Itsmedt’ And MilitiaMan ...

 

:D  :D  :D 

 

 

LINK

The government intends to apply income tax to salaries and allowances, starting from the current month

 

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16th October, 2020

 

Informed political sources revealed that the government intends to issue a decision to apply the income tax law to the total salary since October

The Ministry of Finance imposes an income tax of 3% to 15% on the nominal salary of employees

The sources, who preferred not to be named, told Al-Iqtisad News that the government is directing a major crisis in providing liquidity to pay the salaries of employees, especially this month, noting that the salaries of this month are witnessing a large deficit after the government has exhausted internal loans and that oil revenues are not Enough for that

She noted that the application of the Income Tax Law on the total salary, not just the nominal salary, will give the government an amount of 600 billion dinars

The government applies an income tax from one dinar to 500,000 dinars at a rate of 3%, and if the salary is more than 500,000 to one million dinars, then the income tax is 5%, and if it is more than a million to 2 million, then 10% is applied, and if it is more than 2 million dinars, it applies. 15%

 

#####################################

 

 

Itsmedt: Don’t walk past this one. Income tax + a program rate= major civil unrest!

 

 

Exactly, there are many things showing up that equate to more pressure.

This would be one of them..

Putting taxes on them with out Purchasing Power?
That will not fly.. imo !~ MM

 

 - MilitiaMan

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