Without Prejudice To The Salaries Of Employees .. A Member Of Parliamentary Finance Offers Several Alternatives To Overcome The Crisis !

[DinarThug]

CNN. Broadcasting That "It is possible to raise the exchange rate of the dinar against the dollar,“ !
 

 

 

Without prejudice to the salaries of employees .. A member of Parliamentary Finance offers several alternatives to overcome the crisis

 

Policy 05/06/2020 09:43 240 Editor: am    

Baghdad today - Baghdad 

 

Member of the Parliamentary Finance Committee in the House of Representatives, Majid Al-Waeli, on Friday (05 June 2020), presented several alternatives to overcome the stormy financial crisis in the country, without touching the employees ’salaries, while he hinted that the committee will hold a meeting with Prime Minister Mustafa Al-Kazemi and the Ministry of Finance next week . 

Al-Waeli said in a press statement, "There are many alternatives that can mitigate the severity of the current crisis significantly, including an increase in the price of a barrel of oil, which is sold by $ 5 to the refineries of the Ministry of Oil, while the rate of selling it according to the 2019 budget is 60 Dollars. " 

And between, "Those refineries buy about one million barrels per day; that is, there is a difference in the price of up to 55 dollars, meaning that there is a price difference of 55 million dollars," noting that the treasury can supply about 50 percent of this amount, i.e. up to 20 25 million dollars. " 

He added, "The other alternative is to reconsider the sums of real estate sold cheaply and rented with sums, especially those that are located in the heart of the capital and in distinct areas of it, as it can be re-evaluated again because some of them are inhabited without paying any sums for the rents in the first place." He pointed out that "the government should also pay attention to the debts arising from telecommunications companies, especially mobile phones and the Internet, and their collection, which amounts to millions of dollars."

Al-Waeli warned, "The amounts owed by the border crossing points, customs and taxes after being properly and clearly monitored, as well as transport companies, despite the existence of a crisis in that at the present time, all of which can be invested to alleviate the economic crisis caused by the drop in oil prices."

He explained, "The executive bodies should take great care in the issue of the agricultural calendar and protect the product, by preventing the entry of unnecessary agricultural crops available in the local market, or imposing customs prices on the importer from them to equate with their local counterparts as they are cheaper than what exists in the Iraqi market, which leads Consequently, to revitalize the agricultural sector, especially in conditions of curfew, by paying attention to the agricultural lands owned by some citizens and whose crops are sufficient for consumption by them, their families, and their neighbors.

He pointed out that "the committee has also proposed to raise the customs tariff for raw raw materials, after the Iraqi industrialists were harmed by them and those who import the raw material, to show then that their prices are more than the price of the ready-made imported material, which leads to the closure of the factory and the layoff of workers, while imposing a tariff On imported materials, he will make them in competition with the local product, "noting" the necessity of encouraging the national product and making a price difference between it and the importer. "

He continued, saying: "It is possible to raise the exchange rate of the dinar against the dollar, even if only in a small percentage that corresponds to the vision of the central bank, after deliberating between it and the financial committee on this issue, despite the first refusal of the matter as a financial policy, but the committee is trying to hold the stick from the middle and the possibility of implementing this matter even a few numbers and gradually maintain the value of the Iraqi dinar against the dollar " .

Al-Waeli indicated that "there is an expected meeting of the Finance Committee with Prime Minister Mustafa Al-Kazemi and the Ministry of Finance next week to present those alternatives before it and implement what can be implemented from them."

And he added, "The committee is in the process of preparing an integrated study in the light of the reports submitted by both the central bank on the financial crisis and the government as a vision by the advisers' body, which dealt extensively with employee deductions as a solution to overcome the financial crisis."

The government of Prime Minister Mustafa Al-Kazemi faces several problems, including the country's severe financial crisis, the emerging Corona virus crisis, and low oil prices.

LINK

[tigergorzow]

DT Thanks,  Excellent articles keep em coming...👍👍😁😁.

 

GO RV & RI

[DinarThug]

Member of Parliamentary Finance calls for opening foreign investment to state real estate to support the country's budget

 

Policy 06/2020 2020 21:36 84    

Baghdad today - Baghdad

 

Member of the Parliamentary Finance Committee called on MP Jamal Cougar, Thursday, to open foreign investment to state real estate, to support the state budget. 

Cougar told (Baghdad today), that "the Iraqi state has large numbers of real estate, some of which can be invested in different ways or at least sold to support the country's budget," stressing "the need to give a broader field in front of the foreign investor to own and buy because it can double the value of those real estate." To double and enter a real competition for the local investor. "

He added that "giving the foreign investor the opportunity to own and buy must be in accordance with the legal framework that does not enter suspicious hands, in a way that serves the public interest."

A member of the Parliamentary Finance Committee, Jamal Kujer, estimated on Wednesday (03 June 2020) the number of real estate owned by the state, while he indicated that among them are what are occupied by politicians and parties without charge, while others were sold cheaply.

Cougar said, in an interview with (Baghdad Today), that "the Iraqi state owns 100 to 200,000 real estate, some of which were sold under previous governments at eighths, while others are currently occupied by parties and politicians, and they pay nothing to the government."

He added, "The opportunity now is considered golden to address the file by forming an investigation committee to follow it through a road map consisting of 4 main points."

He explained that "the main points are the investigation of the file of the sale of those properties, and whether they were duly conducted through a public auction and whether the prices are consistent with similar real estate, in addition to researching the fate of real estate whose maps have been changed, following up on some MPs’ talk about falsifying the papers of some of them and asking for documented information as it should Checking the revenue file of those properties that are now occupied by parties and politicians, and whether they represent real resources or not. "

Cougar stressed the need to "pay attention to the file of non-service real estate that cannot be restored or taken advantage of, such as government departments, which can be used and sold to fill the deficit in the public budget."

LINK

[DinarThug]

LINK

Parliamentary Finance Al-Kazemi received 10 alternatives to overcome the economic crisis

 

5th June, 2020

 

The Parliamentary Finance Committee revealed, on Friday, a forthcoming meeting with Prime Minister Mustafa Al-Kazemi, the Ministry of Finance and the Central Bank to present 10 alternatives to overcome the current economic crisis and maintain the salaries of employees without deduction, and agree on what can be implemented from those alternatives

Committee member Majid al-Waeli said in a statement reported by the official Al-Sabah newspaper and seen by Al-Iqtisad News that “there are many alternatives that can reduce the severity of the current crisis significantly, including increasing the price of a barrel of oil that is sold by $5 to refineries Of the Ministry of Oil, while the rate of selling it according to the 2019 budget is $60

He added that "those refineries buy about one million barrels per day; that is, there is a difference in the price of up to 55 dollars, meaning that there is a price difference of 55 million dollars," noting that "the treasury can supply about 50 percent of this amount, i.e. up to 20 25 million dollars

He added, "The other alternative is to reconsider the sums of real estate sold and leased with cheap sums, especially those that are located in the heart of the capital and in distinct areas of it, as it can be re-evaluated again because some of them are haunted without paying any sums of rent at all

Al-Waeli indicated that "there is a forthcoming meeting of the Finance Committee with Prime Minister Mustafa Al-Kazemi and the Ministry of Finance next week to present those alternatives before it and implement what can be implemented from them." He stressed that "the committee is preparing an integrated study in the light of the reports submitted by each of the Central Bank on the financial crisis And the government as a vision by the Council of Advisors, which dealt extensively with the deduction of employee salaries as a solution to overcome the financial crisis

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

An upcoming financial meeting chaired by Al-Kazemi discusses 10 economic alternatives and keeping salaries  
LINK

[DinarThug]

LINK

The Finance Committee sets the terms for external borrowing

 

 

11:18 - 06/05/2020

 

 

Today, Friday, the Parliamentary Finance Committee set conditions for Iraq’s borrowing from international banks.

Member of the Parliamentary Finance Committee Sadiq Al-Sultani told the Iraqi News Agency (INA), "External borrowing must be in accordance with standards and a database." Noting that "among these criteria is that the interest rate in them be minimal and for a long time so that there will be time to recover the economy the National".

Al-Sultani stressed that "external borrowing is supposed to be devoted to important issues, including government salaries and expenses on institutions." He added: "Today we need quick decisions, activating some decisions in the Ministry of Finance, and restoring the financial policy and functional structure of the central bank."

The Parliamentary Committee had warned earlier of external borrowing, recommending alternative solutions to deal with the crisis, stressing that external borrowing means linking the sovereignty of Iraq and the economic movement and appointments to the policies of the International Monetary Fund and the World Bank, which leads to restricting the country's economic policy. 

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

The Finance Committee determines the conditions for external borrowing ... a dispute in the legislature regarding it   
 LINK

[6ly410]

 go RV 

[DinarThug]

15 minutes ago, 6ly410 said:

 go RV 

Let’s Bro !  

 

 

     

 

 

[DinarThug]

Member of Parliamentary Finance: The country's financial situation is very critical and we are working to get out of the crisis

 

Economie 06/2020 2020 18:05 426     

Baghdad today _ Baghdad  

 

Member of the House of Representatives for the Finance Committee, Hanin Qaddu, confirmed today, Friday, that the country's financial situation is in a critical condition as a result of the continued decline in global oil prices, while he stressed that the Committee continues to hold its own sessions to reach effective solutions to the crisis. 

Hanin Qaddo said, in an interview with (Baghdad Today), that "the economic and financial situation of Iraq is very critical as a result of the depression in the world and the continued decline in global oil prices."

“The Parliamentary Finance Committee is in a constant session in order to find effective solutions to avoid the current crisis, and try not to prejudice the salaries of employees and retirees,” Qaddu added. 

A member of the Finance Committee in Parliament stressed: "There must be alternative options in order to get the government out of the impasse it is going through, regarding its obligations to provide the salaries of employees."

And revealed the member of the Finance Committee, Faisal Al-Issawi, (Saturday 30 May 2020), the formation of a committee from the government and parliament, to address the economic crisis that Iraq is going through, while disclosing the participants in its membership. 

Al-Issawi said, in an interview with (Baghdad Today), that "a committee has been set up to solve the economic crisis headed by the Chairman of the Finance Committee in Parliament Haitham al-Jubouri, whose mission is to present proposals that ensure continued payment of salaries of employees, retirees and social assistance." 

He added, "The committee formed to solve the economic crisis submitted 90 proposals, none of which have been approved yet,

 

 except that during the current week, appropriate options will be put in place for the government and parliament to cross the crisis."

 

Al-Issawi also pointed out that "reducing the salaries of employees is an unrelated proposition, while compulsory savings and unimportant allocations were discussed."

He pointed out that "the saving mechanism according to the proposal starts from salaries that amount to one million, where 5% of it is saved, while salaries of a million and a half million, up to two million, are saved 10%." 

Al-Issawi pointed out that "the proposals talked about the revenues of the border outlets, how to manage them, activate taxes, collect electricity, reduce expenditures in the state, unnecessary allocations, and reduce the salaries of presidencies and higher levels."

LINK

[DinarThug]

Our private banks and government support

Friday 05 June 2020

Samir Al-Nassery

 

The emergency cell of financial reform, nor its members, the complex economic conditions, repercussions of the spread of the Corona virus, political interactions and conflicts, which have resulted in damage to the national economy, stopping the economic cycle, and economic stagnation. The real economist.

And since the banking sector is the main link in revitalizing the economic process, the current conditions have contributed to the stopping of banking activity, especially the private banking activity since the outbreak of the demonstrations in October 2019 and until now what has had its clear effects on the lack of liquidity, low deposits, credit, loans and banking facilities due to the stopping of working hours. During the comprehensive roaming ban for more than 30 days and reducing the permanence and banking activity during the partial roaming ban, which led to a significant decrease in revenues, despite the many measures taken by the central bank in providing a package of facilities to banks, including enhancing its liquidity by reducing the legal reserve ratio, postponing loan installments, and stopping and postponing fines imposed on Banks.

According to the analysis of official data and statistics, the structure of the Iraqi banking sector consists of 7 government banks that capture 86 percent of the profits and only 13 percent of the total annual profits achieved at the total level and that the goals set for the banking sector in all government programs of previous governments are focused on lending For the sake of development and considering banks the lever of development and restoring confidence with the public and achieving financial inclusion in the sense of expansion and spread by providing banking products and services, practicing real banking work and digital transformation of the banking sector.

Through an analytical view of the reality of the Iraqi economy and the challenges facing the financial and monetary policies, in particular the stimulation and revitalization of the economy by bank financing and banking facilities, the above challenges stand in front of its implementation at the present time despite the great efforts made by the Central Bank since 2016 to implement its strategic objectives for years (2020-2016), which achieved important and fundamental goals, most notably the structural, structural and technical developments in banks, increasing the proportion of financial inclusion, investment in human capital, and taking a steady step towards stability in the monetary system and achieving stability in the exchange rate since 2018 and still, but private banks are in urgent need And immediate to government support by studying its problems in the current circumstance in the emergency cell for financial reform formed in the cabinet for the purpose of saving some private banks from collapse, taking into account the following: - 

 Firstly, the nature of banking activities depends on the nature of the activities of the economic sectors, and as long as the economic activity is concentrated in trade (imports), the banks' activity remains focused on external transfer and what is related to it .. So unless other sectors (industry, agriculture, tourism, etc.) move to expect the diversification of the activity The banker.

Second, the legal environment must be provided and the rule of law should be extended in order to eliminate the phenomenon of defaulting in the repayment of loans, as bad debts amounted to 7 trillion dinars, and they constitute a large percentage of the total credit granted, and thus the banks ’reluctance to provide loans and banking facilities 

Therefore, we see that the decisions of the Council of Ministers and the Economic Affairs Committee of the Council of Ministers that were previously issued to support the banking sector, especially private banks, are not activated. It led to obstructing the activities and activities of private banks and greatly affected their liquidity, revenues, and deposits for that. For the purpose of overcoming the banks crisis, in a way that ensures banks moving from the role of banking to the developmental role and revitalizing banking work in the current circumstance, it requires the government, in particular the esteemed cabinet and the emergency cell, to activate the decisions previously issued Cabinet and Economic Affairs Committee.

 Third: Activating all the decisions of the Economic Affairs Committee to support private banks, especially the following: -

1 ‐ The Ministry of Finance changed its decision not to accept it to open bank accounts for the ministries and departments of the state in private banks and confine them to government banks according to its letter 207 on 31/1/2019

2 ‐ Activate the decision to allow ministries and government departments to open documentary credits in private banks up to $ 50 million without going through the Ministry of Finance and the Iraqi Trade Bank.

3 ‐ Activating Council of Ministers Resolution No. 110 of 2009 and Resolution of the Economic Affairs Committee 141 on 20/2/2012 on transferring government bank documentary credits of up to $ 30 million to private banks through the Trade Bank of Iraq.

4 ‐ Activating Economic Affairs Committee Decision No. 253 of 2015.

Regarding the acceptance of sukuk certified by private banks to pay insurance, customs fees and taxes.

Fourth ‐ Activate Cabinet Resolution No. 378 of 2018 regarding the collection of government fees in state departments through electronic payment.

Fifthly: Activating the Financial Services Court formed in accordance with the Central Bank Law No. 56 of 2004, and the Court may refer cases that require referral to the competent courts in accordance with the applicable penal law.

Sixth: Bad debt claims by clients in private banks are considered urgent cases and excellent debts, similar to government debts.

Seventh, in addition to the efforts exerted by the Central Bank, the government also needs to work to create conditions and take measures to help private banks obtain the internationally accredited credit rating and thus enhance international banking relations with correspondent banks.

Eighth - The Ministry of Finance compensated for the damages in the fixed and cash assets lost by the branches of private banks, which amounted to (37) branches in the governorates occupied by ISIS in 2014 and are documented with the Central Bank of Iraq.

IX ‐ Activating Cabinet decisions No. 313 of 2016 and No. 218 of 2017 regarding localizing employee salaries and requesting government departments to localize their salaries as per their desire and not directing them to localize salaries exclusively in government banks.

LINK

[Gypsygirl11]

You're on a roll for sure. I wish they'd quit yapping their gums and do something.

[DinarThug]

LINK

Parliamentary Committee: Attention to communications will generate money comparable to oil revenues

 

4th June, 2020

The Parliamentary Communications Committee stressed, on Thursday, the need to pay attention to the telecommunications sector to provide new revenues for the country, while noting that there are debts and fines for mobile phone companies.

According to the official agency, Member of the Committee, MP Ala'a Al-Rubaie, said, "There are arranged debts and fines for mobile phone companies," calling on the Media and Communications Authority to "recover those debts." He pointed out, "The importance of developing a new communications policy because of this sector is of great importance in diversifying the country's financial resources," stressing that "interest in this sector will generate money comparable to oil revenues."

Regarding contract employees, Al-Rubaie stressed the necessity of "converting contract employees in all government institutions to permanent owners", noting that "the retirement law has provided about 210 thousand job grades that can be used for contracts."

[siberian_shaddow]

Damn Thugs, your smokin today. Plus 10

[DinarThug]

4 minutes ago, siberian_shaddow said:

Damn Thugs, your smokin today.

 

 

 

     

[steveh12]

Whach Ya Gonna Do When Thugamania Runs Wild on YOU?? !! 😁

[Pitcher]

53 minutes ago, steveh12 said:

Whach Ya Gonna Do When Thugamania Runs Wild on YOU??

 

Easy, you get the Hell out of his way because sometimes he just loses it.

 

 

 

 

 

 

[A.M.]

Good stuff Thugs🤙

[DinarThug]

32 minutes ago, Pitcher said:

Easy, you get the Hell out of his way because sometimes he just loses it.

 

 

 

     

[southbeach]

3 hours ago, DinarThug said:

LINK

Parliamentary Committee: Attention to communications will generate money comparable to oil revenues

 

4th June, 2020

The Parliamentary Communications Committee stressed, on Thursday, the need to pay attention to the telecommunications sector to provide new revenues for the country, while noting that there are debts and fines for mobile phone companies.

According to the official agency, Member of the Committee, MP Ala'a Al-Rubaie, said, "There are arranged debts and fines for mobile phone companies," calling on the Media and Communications Authority to "recover those debts." He pointed out, "The importance of developing a new communications policy because of this sector is of great importance in diversifying the country's financial resources," stressing that "interest in this sector will generate money comparable to oil revenues."

Regarding contract employees, Al-Rubaie stressed the necessity of "converting contract employees in all government institutions to permanent owners", noting that "the retirement law has provided about 210 thousand job grades that can be used for contracts."

Pretty big statement here

[DinarThug]

5 minutes ago, southbeach said:

Pretty big statement here

 

 

 

     

[DinarThug]

And Start By Restoring The Former ‘Prestige’ In Ur Currency !  

     

 

 

State prestige

Wednesday 03 June 2020

Dr.. Saad Al-Obeidi

 

The prestige of the state must be restored, an expression that has been mentioned in the tongues of all the heads of the councils of ministers in our country since 2003, until it has become frequently faded or even ridiculous in many cases. The prestige or prestige is pronounced in the psychological sense composed of reverence and reverence, leading to The behavior of appreciation, respect, commitment, and the rule of law, if these meanings set standards for governance or, more precisely, criteria for evaluating the performance of the rulers of the State of Iraq, which they all want to be prestige, it can be concluded that most of them did not work to achieve the meaning of prestige, but rather contributed to the decline of its levels until the state became In the Iraqi people’s perspective, it is closer to insulting it than appreciation and respect, that the prestige of the state cannot be achieved by just wishes that a president launches, nor expressions that include it in his government program only responsible, nor merely goals that this party or those control, or that this group or that includes in its literature to persuade and withdraw the public They are from the paralyzed mind to the ballot box for biased voting purposes,It verifies a verb that takes, from decisiveness in the realization of the act taken, many examples among them, for example 

Clarification:

- Detecting the launchers of the missiles at foreign or Iraqi targets inside the state, and taking punitive measures to hold them accountable legally, a reality that we see occurring dozens of times, and the state institutions did not dare touch any person or entity that launches these missiles to destroy the walls of state prestige. 

- Confronting violent groups, and from whom they were, subjecting them to the law, taking into account the responsibility to respect the work of security institutions and diplomatic institutions, because the prestige of the state is one, and it should include all addresses that operate in the context of state institutions, and holding accountable those who exceed this The legal context ..

- The industry is stopping, a valid plant that meets the need is stopping, a project whose owner wants to contribute to meeting the need is stopping, an investment for projects that can meet the need is being hindered, it becomes clear that the reasons for obstruction and stoppage with the intention to keep the random import, or to take advantage of the exclusive import profits of this entity or That.

...... Etc. From dozens of data indicating the inability to restore the prestige of the state, because it is not repeated by simply speaking in the words of a president or a phrase that appears in a project: these are measures taken by brave people, and only the brave will restore Country prestige

 .
LINK

[DinarThug]

Minister of Labor for "Al-Sabah": We are coordinating with the World Bank to support poor families

Saturday 06 June 2020

 

Baghdad / Israa Samurai 

 

 

The Ministry of Labor and Social Affairs coordinated with the World Bank Mission in Iraq to support the poor groups sponsored by the Ministry. 

The Minister of Labor, Dr. Adel Al-Rikabi, said in an exclusive interview with Al-Sabah: that his ministry has coordinated with the World Bank mission in the country, adding that accordingly, an expanded social development plan has been prepared and will be implemented later, indicating that it is hoped that the World Bank will grant Financial sums to invest in supporting the groups that care for them, especially in light of the economic conditions that the country is going through that negatively affected the living conditions of the poor families registered with them. 

He disclosed that the World Bank mission, in the same context, will provide the necessary support for the implementation of strategic plans, in addition to the development programs towards the sectors it sponsors, in a way that contributes to supporting the groups sponsored by his ministry, especially for those registered with them within the social protection network, in order to expand the coverage category In addition to creating a private and discreet database Them.

Al-Rikabi explained that it is hoped that specialized teams will be formed in order to implement the agreed protocols, which included issues related to the Disabled Persons and Special Needs Authority and the Retirement and Social Security Department, noting that this would cause a positive positive shift in the areas of the Ministry's work.

LINK

[DinarThug]

A deputy addressed Al-Kazemi with a message: He saved the future of Iraq from the trap of foreign debt

 

Thursday 04, June 2020 22:49

 

Baghdad / Nina / Member of the Committee for Monitoring the Implementation of the Governmental Program and Strategic Planning on the Sawaroun Parliamentary Bloc, Dr. "Inaam Al-Khuzai," sent an open letter to the Prime Minister entitled "Save the future of Iraq from the trap of foreign debt."

Al-Khuza’i said in her message she received the Iraqi National News Agency / NINA/ A copy of it: The draft (Domestic and External Borrowing Law) raises astonishment and great concern about government trends towards external borrowing, to finance public expenditures for several reasons; First: The reasons for the law of external borrowing are the decline in oil prices, and this decline is not surprising, and Iraq has been living with it for years due to fluctuations in oil prices, which have decreased and increased, adding: Thus there is no necessity to mortgage the country's economic and financial resources abroad due to the volatility of oil prices, especially as the prices are recovering Tangible after it touched the barrier of $ 40 a barrel recently due to the commitment of major oil producers to control production and start global economic activity in coexistence with the Corona pandemic and gradually move the economic sectors.

Al-Khuza’i explained: The second reason for abandoning external borrowing is the lack of a budget need for cash in “foreign currency,” but there is a need for “Iraqi dinars” to bridge the financing gap until prices recover and maximize other financial resources for the government, noting: The government directs to external borrowing. For the fate of Iraq to international wills and a serious threat to its political, economic and social security, instead, internal borrowing should be adopted by tracking the financial flows flowing from Iraqi banks (Al-Rafidain and Al-Rashid and the Iraqi Bank for Trade) and other private banks, and the central bank will support these banks as happened in 2016 And 2017.

Al-Khuzai noted that: the financial institutions operating in Iraq can be persuaded to secure good sums to supplement and finance the budget, until oil prices improve and all internal obligations and debts are paid without harming the sovereignty and political and economic future of Iraq, stressing: the need for the government to strive to maximize non-oil revenues , Eliminating pockets of corruption, wastage ports in the state’s resources, such as border ports and their huge revenues, real estate of the looted country, opening the file of “debts owed by communication companies”, Iraq’s money abroad, and other abundant financial resources, not immediately resorting to easy solutions (external borrowing). And risk the future of the country and the citizen. / End 3

LINK

Edited June 6, 2020 by DinarThug

[DinarThug]

Basically Posted Again Today - Although Definitely Not Word For Word And From Another Media’s Outlet Report ...

 

 

Al-Asadi: Reducing the dinar exchange rate represents a penalty for the Iraqi people because of economic failure

 

Economie 06/2020 2020 00:53 947     

Baghdad today - Baghdad 

 

Hussein al-Asadi, a member of the House of Representatives, considered that attempts to reduce the price of the Iraqi dinar are a punishment for the Iraqi people because of wrong policies and economic failure.

Asadi said in a publication on his account in "Facebook", said that "Iraq is passing through the conditions of extremely sensitive Iraqi economy faces a real challenge after the failure to find alternatives for the sale of crude oil, and I confirm here the sale of crude oil and not the oil industry Oil Refining Industry  and petrochemicals industry Petrochemical industry , Iraq is one of the largest oil reserves oil reserves  in the world it has 147.2 billion barrels , according to explorations in 2018 ie 8.5% of the world 's reserve thebalance - -  However it imports annually 3.3 trillion Iraqi dinars oil products, according to the annual import of Iraq 's 2018 report of the Central Bureau of Statistics 2019, and it also imports energy worth 7 trillion Iraqi dinars, according to the 2019 budget published in the Iraqi Al-Waqa'iq newspaper (OFFICIAL GAZETTE): Issue 4529 on 11/2/2019. 

He added: "And all of them can be produced in Iraq, in addition to other resources such as agriculture, various industries, trade, tourism, etc., with the absence of Sovereign Wealth  Funds  that provide additional imports and a portfolio to protect the future of generations, especially in times of crisis."

He continued: "Today, Iraq is asking for aid to pay the salaries of employees and retirees, because what enters the treasury is not worth a quarter of what Iraq needs to cover salaries only. 43,404,629,267,000 (Iraqi dinars and the total annual salaries for the year 2019 will be 52,721,281,684,000) Iraqi dinars, which means that Iraq needs monthly (4,393,440,140,000) Iraqi dinars, and if we take into account that the Iraqi dinar exchange is 1,200 dinars per dollar means that 3,6,000 per month (Almost a dollar, while the gross domestic product of Iraq is (1,100,000,000) approximately for the month of March and (1,200,000,000) approximately for the coming months, as Iraq needs (2).5) Almost a billion dollars a month in order to cover monthly salary expenses only, regardless of other needs. 

And that "to address this catastrophic failure, some voices have begun to rise in order to reduce the Iraqi dinar exchange rate against the US dollar in order to increase the budget number and reduce the deficit in it. I find it necessary to clarify some terms, so the reader may be surprised by the ignorance of many who speak in this field, and perhaps they are in positions Mission of responsibility. " 

He pointed out that "float currency Floating Exchange Rate  
float the currency is the currency exchange rate , which has made a float so became an editor in full, do not interfere with the government or the central bank to be determined directly, but are automatically excreted in the currency market through the supply and demand mechanism Supply And Demand  that allows setting the exchange rate of the national currency against foreign currencies, and this term corresponds to the fixed price of the currency exchange 

Fixed Exchange Rate 
Specific price will be determined against a major global currency (usually the US dollar, but also other major currencies such as the euro or the yen or a basket of currencies) In order to maintain the local exchange rate, the central bank buys and sells its own currency on the foreign exchange market for the currency in which it is linked.

He noted that " the devaluation Devaluation 
, which cut the official exchange rate of the currency comes against the international reference currency (dollar US or the euro , for example), so that fewer units of foreign currency that can be obtained in exchange for one unit of the national currency, and the right to talk about devaluation of the currency when the exchange rate under the direct management of the government or central bank, which sets this price through a government decision, 

according to the logic of the same, we can talk about raising the price of the currency revaluation  in exchange for reduced,
and this is when the exchange rate under the direct management of the government or central bank also, note that reducing the price of the currency and lifted them within the framework of one exchange , a hard currency, but when the exchange rate is subject to the forces of supply and demand (float currency) and gets a decline in the value of the currency, devaluation of the currency Depreciation  The decline is an automatic result of the free interaction between supply and demand in the foreign exchange market without direct interference from the government or the central bank, and according to the same logic, one can talk about the rise in the value of the currency Appreciation  in exchange for its decline, and we note that the rise and fall of the currency price is within the currency float. 

Then he added: "Since the Iraq works within the fixed exchange system Fixed Exchange Rate  , we can talk about reducing the currency exchange rate and here I do not want a trade - off between the two systems each one of them his conditions, although the market economy Market Economy  and the idea of non - interference of the state in economic activities and left The market is controlling itself by operating a system of floating the currency, and its price depends on the iron principle of supply and demand, but the actual conditions of Iraq do not allow for reasons that are too long to be explained.

He added: " The same exchange rate countries hard to resort to reduce the currency exchange rate for economic reasons to improve its trade balance Balance Of Trade  is due mainly mainly to the increase in domestic production in exchange for imported Reducing currency makes the disparity between the outside and inside thereby reducing imported in the tribes have the source, This assumes that there is an internal production that covers the domestic need and is intended to maintain and export it abroad, but in the Iraqi case, unfortunately there is no industry, no agriculture, no internal production, covering the local need as well as being an exporter, as Iraq has nothing to export other than Crude Oil. )And, I am talking here about the reality of what is there and not what I am calling for, the total imports for the year 2018 for commodities and oil products amounted to (37) billion dollars, equivalent to (43. Iraqi dinars, and the total imports for the year 2018 for commodity goods (34) One billion dollars, equivalent to (40.5) trillion Iraqi dinars, and Iraq does not need to reduce the exchange rate, but rather it is enough to prevent the import of any indispensable material. " 

He added: "As for the real effect of the devaluation, it is the direct punishment for the Iraqi people, so if we know that 6 million Iraqis receive a salary or aid from the Iraqi government and the number of members of the Iraqi family is 5, we are talking about about 30 million Iraqis who live on what they receive from salaries or aid from the government." Iraqi all these will be affected by this measure in order to get inflation inflation  in prices because of the low purchasing power purchasing power Iraqi Dinar the family that they could live a million dinars Iraqi after the devaluation became worth 500 thousand dinars , and they receive a number is one million and are therefore going to live a great distress because of this reduction, and the other affected are the owners of internal debt internal debt  In the local currency, which amounts to about 40 trillion dinars, which represents treasury transfers and debits with government banks and the central bank of companies, contractors and merchants, so if they are a number, the Iraqi government will still owe them with 40 trillion, but after reducing the currency they will owe 20 trillion on the assumption that it has been cut in half As for the external debtor, it remains the same because in foreign currency the dollar or the like. "

He continued: "The confidence of investors and companies in the currency after the devaluation is much less because the stability of the currency is one of the factors that encourage investment and entry in projects, as well as problems related to economic feasibility after the devaluation, which is the basis of the intervention of the government or the central bank in fixing the exchange rate, except for the principle Floating the coin from the beginning. " 

He concluded his speech by saying: "Hence, we believe that those who seek to actually reduce the currency price are punishing the Iraqi people because of the wrong policies and economic failure that brought the country to this situation. The people in this bear the mistakes of politicians and are punished instead of them."

LINK

[DinarThug]

LINK

World Gold: Countries’ purchases are down for April and Iraq hasn’t been buying since 2018

 

6th June, 2020

 

The World Gold Council announced, on Saturday, the decrease in purchases by central banks of countries for the month of April last, between that Iraq has not bought gold since 2018

The Council said in a statistic published on its website during the month of June and viewed by "The Economy News", "The purchases of gold by the central banks of countries decreased for the month of April, as the banks bought only 31.6 tons of gold, which is 24% less than the month of March and 35% less. For the month of April 2019

He pointed out that "Turkey is the only country that bought large quantities of gold in April, as its gold reserves grew by 38.8 tons, which raised its gold reserves to 524 tons and ranks 12th in the world

He added, "Iraq has not purchased gold since 2018, by which it bought 6.5 tons to add it to its reserves of 96.3 tons." He explained that "Iraq still maintains its fifth position in the Arab world after each of Saudi Arabia, Lebanon, Algeria and Libya, and ranked 38th globally out of 100. Countries included in the international financial statistics for the global reserves of gold

It is noteworthy that the World Gold Council, which is based in Britain, has extensive experience and deep knowledge of the factors that cause the market change and its members consist of the largest and most advanced gold mining companies in the world

[DinarThug]

LINK

Reuters: 15,000 Iraqis have lost their jobs due to Corona

 

6th June, 2020

 

Reuters revealed on Saturday that about 15,000 Iraqis have lost their jobs due to the crisis, which was caused by the outbreak of the "Corona" virus, warning of a wave of anger the government may face

The agency's report, released today, is as follows

Muhammad Haider, a security officer in the oil fields in southern Iraq, thought he was safe after signing a new one-year work contract to guard oil installations. But after three days, he found himself without a job. The man, 38, said during his protest outside the headquarters of the Basra Oil Company, the local partner of foreign companies, "Our company came out to us and land us on the sidewalk

Haidar was hired to drive vehicles for a British security company around the huge West Qurna 1 oil field, which produces hundreds of thousands of barrels of oil per day and is part of the country's main source of wealth. The man currently spends his time at home or searching in vain for jobs on the Internet that are seldom found in an economy in crisis

Haider said at his residence later, "Even Mako taxi (there is no) work. Because someone who gets locked up and is fined (fined) because of this epidemic, Coronavirus. One of the thousands of workers in the Iraqi oil sector who were laid off this year after the decline in crude prices as a result of the Covid-19 epidemic is struggling to find another source of income

Iraq asked international oil companies in March to reduce their budgets by 30 percent due to a collapse incrude prices. Southern energy companies responded by cutting costs. Subcontractors, including security, construction and transportation companies, have laid off thousands of workers, according to local authorities

Mohammed Abadi, a local official in Basra Governorate, where most of the southern oil fields are located, said that companies had dispensed between 10 thousand and 15 thousand Iraqis out of about 80 thousand Iraqis working in oil fields. He added that Iraqi employees, most of them in companies operating under the suburbs, had to take leave without pay or leave work altogether. The British security company, which contracted Haydar, declined to comment

* Half-salary

The Abadi office received dozens of complaints from employees who demanded that the Iraqi authorities punish companies that do not comply with the terms of termination of contracts. Al-Abadi said that the local authorities negotiated granting about two thousand workers who were laid off between 50 and 25 percent of salaries for a period of four months. "The government does not accept the arbitrary dismissal of local employees," said Khaled Hamza, an official at Basra Petroleum Company, adding that it needed to protect the jobs of local residents in particular

Iraq has pledged to reduce oil production by at least one million barrels per day in the context of OPEC cuts. Iraq exported 3.2 million barrels per day in May. The cut has reduced government revenues, of which more than 90 percent is oil. The government may have to cut public sector salaries, a move that will further anger Iraqis who protested last year against government corruption allegations and job shortages

Ebadi fears the deterioration of the economic and social crisis in light of the Covid-19 epidemic that is ravaging the country. Because most jobs in Basra are linked to the energy industry, it is almost impossible for employees like Haidar to find an alternative source of income

The man who supported three children and worked as a driver for the British company for five years was ready to work in any job in order to support his family. Haydar fears that he may be unable to cover the costs of the study or the medical expenses, saying, "We hope to return us, even even at half salary