The House Of Representatives Heads To Legislate The Oil And Gad Law during The Upcoming Sessions !

[horsesoldier]

Paris Hotel 🏨 = Cat House ??? Just askin.

[keylime]

2 hours ago, Linda Bower said:

The question is,,,,How much do they need to raise the exchange rate to?

 

A lot is a good start!!!!

[DinarThug]

44 minutes ago, horsesoldier said:

Paris Hotel 🏨 = Cat House ??? 

It’s The Paris Hilton !  

 

 

     

[DinarThug]

Somebody Call George Costanza !  

 

 

And Maybe Send Him To The Paris Hilton ...

 

     

 

Hiring a shrinkage predicament

Tuesday 09 June 2020

Mohammed Sharif Abu Maysam

 

We are facing a financial crisis caused by low oil prices, and about treatments that target the pressure of government spending, an economy that suffers from structural imbalances that limit the movement of the market in light of reliance on imports to finance domestic demand, and talk about the intention to reduce the salaries of employees - which is the privilege of the first financier of the offer Cash, after declining rates of investment budgets over the years - along with the consequences of the Corona pandemic's repercussions of the available economic activities, which withdrew to the activities of the shadow economy.

The macroeconomic landscape has become a candidate for further deflation in light of these pressing data, which means that consumption rates must decrease at the expense of the commodity supply that is flooding the markets, which filters low inflation rates within the limits of total supply and demand, above all.

Here, two opportunities may arise at the monetary level that many enthusiasts demanded to liberalize the exchange rate, claiming the fear of depleting the reserves of the central bank in the currency auction, and limiting what is said about suspicions of corruption in the money-flowing operations out of the country: The first relates to the low demand to buy dollars Due to the low rates of cash flow to finance foreign trade, in conjunction with a decrease in the income of the middle class, which will contribute to reducing exchange rate fluctuations, and consequently the possibility of the exchange rate to remain stable or fluctuation at initially acceptable rates, when following the “managed float” method that requires central intervention accordingly To supply and demand in the parallel market, in conjunction with pressure government expenditures.

Frequently, the demand to reconsider the auction of the currency sale or stop it permanently is repeated on the tongues of politicians and observers, so that it has become among the reform steps that have been talked about the intention to apply in the current stage, and the opportunity now appears favorable if the leaks that talk about pressure of government spending in the budget Half yearly to be presented in the coming days.

The second opportunity that can be filtered from this contraction relates to the possibility of raising the interest rate, with the aim of withdrawing the chunky cash block estimated by the Central Bank at about 70 percent of the issued cash. However, in light of the deflationary pressures, this measure can redistribute the monetary mass issued by the central bank between the banking trading scene and the local markets in conjunction with the introduction of modern banking technologies and systems that reduce slack rings and encourage the public to trade online towards reducing cash circulation within the framework of applying Serious to the program of financial inclusion, which means and necessarily the exit of monetary policy from the predicament of hoarding that it has suffered over the years and the liberation from the burden of financing foreign trade, which the liberals consider responsible for the total demand in the local market.

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[DinarThug]

The financial crisis is in the hands of economists

Tuesday 09 June 2020

Mohammed Abdul Jabbar Al-Shabbout

 

Our country suffers from a major financial crisis whose title is announced, according to Prime Minister Mustafa Al-Kazemi, the state’s treasury is empty of cash, and its direct cause is the state’s dependence on one source of cash is oil revenue, and its deeper cause is economic backwardness which is a severe imbalance in the cultural complex, and the complex Civilization consists of elements and values. As for the elements, they are human, natural, time, science and work. As for the values, they are indicators of behavior that achieve prosperity and prosperity for society and protect them from want and poverty, and since the whole country is poor now, this means that the defect in this cultural compound, with its elements and values, A very large imbalance that the state may not have the tools to deal with at a rapid and visible level, which deepens the suffering of citizens, especially those who get their daily food by direct daily work, those who depend on the state salaries only, and those who work in the private sector, this without Male unemployed originally.

Iraq is not the first country to go through such a situation. For example, the United States and the rest of the world were exposed to more severe cases, as in the "Great Depression" that struck the world economy in the first half of the last century. It is an economic crisis that occurred in the year 1929 CE, through the 1930s and early 1940s, and is considered the largest and most famous economic crisis in the twentieth century. The crisis began in the United States, where it began with the collapse of the American stock market on October 29, 1929, called the Black Tuesday.

In comparison with the Iraqi case, we find that the government, which is a partisan political body based on categorical quotas, is unique in making remedial decisions for the crisis, and does not allow much room for economists, finance, and businessmen with economic experience in proposing solutions, setting options, and participating in making important decisions that relate to people's lives Their livelihoods and livelihood, this is despite the fact that Iraq has many experts and economists, with international standards and levels, who can discover the best practical solutions based on insightful economic economic vision. 

The Minister of Finance has promised not to touch the salaries of employees without the 500,000 dinars, as if this number is the magic number that provides decent living for the employee and his family. I differed greatly with the Minister of Finance in this determination, and I have seen that the number cannot be less than one and a half million dinars as a minimum, taking into account the high cost of living in Iraq, but nevertheless this is not the problem, because reducing the government employee’s salary will affect Negatively in the overall economic process and market movement in the country, and does not represent a solution to its crisis, but may exacerbate this crisis.

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[DinarThug]

 

 

     
 

 

The devaluation of the dinar and the benefit of supporting the local product

Tuesday 09 June 2020

 

Baghdad / Al-Sabah

 

Specialists in the financial and economic affairs called for the necessity of supporting the private sector and the local product by providing all means of support to it, while they suggested reducing the dinar exchange rate against the dollar by 25 percent by the central bank to support the local product because it would raise the price of the imported product, which creates an opportunity for the producers To increase and diversify their internal products and put them to the local market, provided that increased government support for individuals to prevent inflation.

The economist, Saleh Al-Hamashi, said in a statement to "Al-Sabah": "If the state reduces the exchange rate of the dinar against the dollar, it will have positive effects in some respects and negatives in others," noting that "it will reduce production costs in proportion to the private sector, which will find an opportunity In competition with imported products, which allows him to enter the market significantly, as well as he will equal the balance of payments to the government at the production level. ”

 

Absorb products

He added that "governments usually resort in such circumstances to measures to support and maintain the level of consumption to ensure the internal market remains in a stable condition as well as to ensure the continuation of production wheel, since what is the benefit of increasing production in a market unable to absorb the manufactured products, so it must be accompanied by currency devaluation A number of measures to protect the market and the consumer to avoid a decline in demand, and this requires increasing government support for individuals and setting minimum wages in light of the new variable to reach a state of balance between production and consumption.

 

Iraqi dinar

For his part, economic researcher Nabil Al-Marsoumi said that "in the event that the Iraqi dinar exchange rate is reduced substantially by 25 percent, for example, the economies of some countries that export to it more than 20 billion dollars annually will be greatly affected because the cost of its exports to Iraq will become high and its competitive capabilities in the Iraqi market will decrease." This is considered an important constraint to take this type of policy due to the strong influence that neighboring countries possess in Iraq. "He added that" given the lack of flexibility of the production base and its limitations in Iraq, the prices of imported goods will rise in the short term, especially, but in the medium and long term it may constitute that An incentive to activate the role of the private sector in establishing projects that produce consumer goods, especially food, to cover the needs of the Iraqi market, which will lead to lower prices later.Government revenues will rise denominated in the Iraqi dinar at the rate of the dinar price itself, which will increase its ability to cover public expenditures, as well as maintain the cash reserves of the Central Bank of Iraq from erosion.

 

Iraqi investments

He continued, "It will put an end to the flight of capital in view of the low value of the dollar in the face of the dinar, as well as reducing Iraqi investments abroad, especially in real estate and reducing Iraqi deposits in foreign banks, as well as the relative reduction of money laundering operations in Iraq." He went on to say: "This procedure It will reduce foreign labor in Iraq, as work becomes shrewd in terms of uselessness on the one hand and foreign labor becomes more expensive compared to national employment. ”

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[DinarThug]

Service companies expand the activity of the Iraqi market

Tuesday 09 June 2020

 

Baghdad / follow up 

 

Baghdad Economic Forum Member Jassem Al-Aradi stressed the importance of the presence of international companies within the Iraqi labor market, especially when its presence is coupled with providing new and safe services, coinciding with providing job opportunities for a wide segment of young people in all regions of Iraq.

He added that "the past period has witnessed the existence of services companies specialized in the field of transportation, providing a safe service, but more importantly, that the company's presence be associated with providing job opportunities for youth and makes them close to the advanced technologies that are adopted in various countries of the year."

In turn, between the general manager of "Karim in Iraq", Mohamed Hassan Mohamed, that "the developed international effort understands the importance of the Iraqi labor market, which led the company to expand its activity in the region and enter this important market, and we have introduced a different business model for Iraq in the field of modern and safe passenger transport And reliable, with many and varied options, starting from the method of calling the captain and obtaining the service, through booking trips and programming them according to desire and need, until the monthly packages that meet the different needs, payment methods and others, all with the aim of facilitating and improving the details of people's lives.

He pointed out that "the company has strengthened its efforts to facilitate the lives of people in light of the spread of the Corona virus, as the company's business model has proven more important than ever in facilitating the process of transportation, especially safe in light of the restrictions imposed by countries on mass transportation as a kind of precautionary measures to prevent The spread of the virus. "

He pointed out that "the company launched several services, most notably the services (delivery) that the company launched in the month of April to provide a service that delivers the purposes and main needs of the Iraqi citizens to restaurants, food markets and pharmacies, in conjunction with the procedures to ban roaming in Iraq and reduce the movements of Iraqis under the current conditions In order to facilitate their access to their basic necessities without the need to leave the house, in addition to providing income for the captain in these exceptional circumstances. "

As for the labor market and its associated employment, “the company seeks to provide more income-generating opportunities for thousands of young people (the captain) and we sought to provide employment opportunities for 100 thousand captains in the next five years, and the use of delivery applications provides a high level of safety For users, as well as many of the features that encouraged customers to head to adopting Karim as the first choice especially in light of the spread of the Corona virus. "

He stressed that "the work is heading to be a pioneer in the smart transport sector, as we were able, during a record period in our launch in the State of Iraq, to gain a great popularity from customers and in the various governorates in which we provide our services, as well as to include thousands of captains who initiated to join our network. This matter is due Because of our services, and because we offer exceptional benefits for all beneficiaries, and after the spread of the Corona virus, the company was quick to provide many safety measures out of our concern for the safety and health of all our customers who use the application as a top priority for us, we have taken a set of safety and prevention measures on For the sake of mention, but not limited to, the hygiene of vehicles and the use of sterilizers and masks by the captain, as well as reducing direct contact by requiring the customer to sit in the seat.

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[DinarThug]

Al-Kazemi's advisor announces the intention to prepare a new salary scale and reveals the value of the deductions from employee allowances

 

 

Policy 6/20/2020 22:13 8036 Editor: gf   

Baghdad today - Baghdad 

 

The appearance of Mohammed Saleh, the financial advisor to the Prime Minister, Mustafa Al-Kazemi, Monday (8 June 2020) revealed a new salary scale that will be presented within three to four months, while he revealed a surprise regarding the auction of currency selling, which is valued at the Central Bank of Iraq.

"We have lost two thirds of the value of a barrel of Iraqi oil since the end of last year," Saleh said during his hosting of the program (Shortest Roads) presented by Al-Sharqiya News Channel. Welfare, social, drug purchase and payment of internal and external debt services. "

He pointed out that "the Iraqi economy depends on oil, which depends on global supply and demand," noting that "Iraq exports 2.4 million barrels per day, and what came to us as a sales value for the month of May in the current June is only 2.4 billion dollars."

He warned that "in light of that, the monthly deficit reached 4.5 trillion dinars," adding that "the government is able to send a proposed budget before the date set on June 30, but what will be sent will be burdened." 

And he added, "The cost of extracting oil is $ 10.5 in Iraq, and we pay a billion dollars on the cost of extracting oil for oil companies from the central and southern fields, and this is one of the days when the barrel of oil was worth more than $ 60." 

He continued, "Foreign oil companies take their financial dues as crude oil from Iraq's share of oil exports." 

He continued, "There are consultations with the oil companies to reduce the percentage granted to oil companies for the value of each barrel of oil produced, in the coming term there will be an agreement." 

He went on to say, "The OPEC + agreement was negotiated by the former oil minister and he said that it was imperative to prevent its collapse." 

He also talked about government reforms intended to address the fiscal deficit and said that "the reforms proposed by the government include addressing double pay", noting that "no financial allocations can be canceled for any lawful category." 

And he added, "The Cabinet is moving to prepare a new salary scale that can be sent to Parliament for approval within 3-4 months." 

He stressed, "There is no government tendency to deduct the salary allocations by 50%. This is a proposal that has been modified. The deduction has been limited to 10%, and implementation will start this month if approved."

And that "there is a financial space for Iraq to borrow internally, externally and internally, because it will be from the government through banks."

While he pointed out that "we have a deficit of 4 trillion dinars per month," he pointed out that "the salaries of last month were arranged from oil revenues and non-oil revenues and from the agreement agreement with China and some open credits."

And on financing the salaries of this month, he explained that it "will be funded through 2 trillion from the Iraqi Commercial Bank, and the rest will be funded through the Rafidain and Rashid banks." 

He concluded by saying, "The World Bank has indicated its willingness to lend to Iraq and it wants reforms in exchange for support." 

And he talked about the auction of selling foreign currency by saying that "the auction that the central bank undertook, after the change in 2003, committed itself to selling the dollar to control the exchange rate of the dinar or the dollar, and it was supposed to stop after two years of its launch. The central bank finances trade in Iraq because private sector banks cannot To do this, the Rafidain and Rashid banks were supposed to buy the dollar from the central bank, but they were unable to do the job. " 

He also touched on the value of what is spent on some basic services without revenue in return, saying, "It is unreasonable to receive imports worth 50 billion dollars while entering annually from customs is only one billion dollars and we lose 3 trillion dinars because of it, and the Ministry of Electricity is spending 14 billion dollars to develop it while the corresponding income Not to exceed 600 million dollars. "

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[DinarThug]

Video .. The Finance Minister talks about the size of the deficit in the amounts of salaries and how the government will try to solve the crisis

 

(VIDEO LINK)

Economie 06/20/2020 09:52 1782     

Baghdad today - Baghdad 

 

The Minister of Finance, Ali Abdul Amir Allawi, revealed the size of the deficit in revenue this year, compared to the sums the country needs to secure salaries, while he revealed several methods, he said that the government will resort to to solve the financial crisis.

Allawi said during a press conference, held in Baghdad, after the end of the special cabinet session, that "the accumulations of wrong policies since 2003 to this day have led to real problems in the economic infrastructure of Iraq," noting that previous governments did not face the economic side with the required seriousness ".

He added that "we are now working to confront these accumulations and solve them through the cooperation of all to cross this economic crisis and enter a new economic space."

And that "the economic crisis occurred because of the decline in oil revenues very low, and even after the relative rise, the government will import 3 trillion dinars during one month."

Allawi pointed out that "the expenses of the state during each month amount to 7 trillion dinars, and that the deficit that occurs during each month is 5 trillion and we are working to find a way to provide it." 

He expected, Minister of Finance, that "oil prices rise in the next stage, but this rise cannot cover the deficit in the budget."

He pointed out that "Iraq suffers from three basic problems, the most prominent of which is the financial crisis that occurs and how to deal with it without affecting the middle classes of income and the poor." Processed "

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[DinarThug]

A deputy proposes a political and economic course to solve Iraq’s problems with neighboring countries, which will pave the way for more job opportunities

 

Policy 06/2020 17:17 192 Editor: Zs   

Baghdad today - Baghdad 

 

Member of the State of Law coalition, Representative Kati al-Rikabi, proposed on Monday (8 June 2020), the necessity of adopting a comprehensive political and economic path towards yellowing out problems with all countries of the world, including neighboring countries. 

Al-Rikabi said in an interview with (Baghdad Today), that "all Iraqi political forces are unanimous in seeing the yellowing of problems with all the countries of the world, including the neighboring countries, because the country is in a situation that does not allow these problems to remain in light of its successive crises." 

He added, "It is a mistake to leave any problems without solutions and work on Iraq towards a new economic path that opens up to investment by extending a hand to all the owners of capital to come and invest in the country and provide all frameworks that contribute to the development of an economic vision that benefits people and provides more job opportunities." .

 Al-Rikabi stressed, "The prosperity of the economy will address many problems and push to address poverty and unemployment." 

The wars of the previous regime have created countless problems with many countries in the world, including the neighborhood, in the past decades.

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[DinarThug]

The Parliamentary Finance Decision presents two proposals to secure the salaries of employees and thirdly, to increase the state’s revenues by 50%.

Economy 06/06/2022 22:22 2274 

Baghdad today - Baghdad 

 

The decision of the Parliamentary Finance Committee MP Ahmad Al-Saffar presented, Monday (8 June 2020), a proposal to resolve the current deficit in salary insurance, and while he emphasized that the financial crisis in Iraq is temporary, he indicated that the 2020 budget will be perhaps half yearly for the remainder of the year and is concerned with operating expenses It is not an investment.  

"I expect the government to send a semi-annual budget before June 30th, which is the date that Parliament has set for the government, " Saffar said, while hosting the program (Shortest Roads) presented by Dr. Nabil Jassem on the Sharkia news channel. According to the 2019 budget on the basis of 1/12 ". 

He expected that "the current year's budget will be an operational budget and not an investment because the value of imports is not enough," revealing "to hold a meeting within a day or two with the Minister of Finance during which he is expected to present his vision on the state's capabilities," stressing that "the government cannot work without approval Budget for this year, including the topic of external borrowing. "

He explained, "We have the problem of the lack of final accounts and the 2019 budget that included financial surpluses for projects that were not implemented and should be searched for." 

Al-Saffar added, "Oil constitutes 93% of the state's imports and this is dangerous because it is vulnerable to tremors due to fluctuation in prices and supply." He pointed out that "successive governments have transformed our economy into completely rentier, and also the financial policy in Iraq is a buffoon in the absence of the state's financial doctrine ". 

Regarding salary insurance, the Parliamentary Finance decision said, "The solution to the salary insurance deficit is possible through two proposals. The first is to offer temporary treasury bonds of 4 trillion dinars per month. It is also possible to borrow from government banks to secure salaries, and the crisis is temporary and will not be longer than just months because oil prices Getting more. "

He continued, "There must be economic and financial reform that begins to confront corruption, because any attempt to reduce unemployment and poverty clashes with corruption and there must be a will."

He pointed out that "Iraq is the only country in the region that has all the capabilities to achieve prosperity, our problem in management and organization, we need an economic revolution in the country that includes many sectors based on proper planning."

He pointed out that "for the purpose of maximizing the country's imports, it is possible to provide non-oil revenues of 50% to the value of current oil exports, through the tax and collection system and to support agriculture, industry and financial policies," adding "we have an agricultural sector capable of securing the country’s need and providing enough resources for Iraq from agriculture alone" .

And Al-Saffar said that "Iraq is very affected by the reduction of its oil exports under the OPEC + agreement because it does not have a sovereign fund that can, through the disbursement of funds, until the prices return to normal, a sovereign fund must be found in which we put one dollar on the value of each barrel of oil sold, Norway sells oil and does not spend Money and many other countries.

Regarding the draft borrowing law to cover the financial deficit witnessed in Iraq, which was read for the second time in Parliament in preparation for a vote on it, the decision of the Finance Committee stressed, "We will not agree in Parliament to pass unproductive and earmarked loans to pay salaries only."

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[DinarThug]

A nightmare of staff salaries .. To whom Iraq can resort in light of its financial crisis

- 3 Hours Ago

 

To overcome the crisis, there are several scenarios that the government of Prime Minister Mustafa Al-Kazemi may resort to, including reducing salaries, but Al-Kazemi ruled out last Tuesday touching the salaries of people with limited income and retirees, explaining that he would seek to reduce the salaries of employees of the three presidents and special and higher grades, and those with dual salaries and phantom only, to The side of incitement to rationalize spending.

The government may resort to secure the state’s operating budget and salaries for borrowing, whether from home or abroad.

Commenting that the government may resort to borrowing, a member of the Economy and Investment Committee in the Iraqi parliament, Nada Shaker Jawdat, told Al Jazeera Net that the government should have created conditions before the crisis occurred by not relying on one major source of income through better activation of the border ports' incomes, or developing The economic sector, which I considered a large and renewable source of income, in case it was well invested.

Nada also called for a review of the Rafha law, "a law that guarantees salaries for opponents of Saddam Hussein who left Iraq, classified by professionals as illegal and exaggerated."

Resorting to borrowing
The Parliamentary Finance Committee discussed, last Thursday, the issue of internal and external borrowing, to fill the budget deficit, and the committee asked the government to send a bill in this regard, to be discussed in the House of Representatives and vote on it.

On his part, Cougar told Al-Jazeera Net that Parliament had cut off borrowing in front of the government, but at the present time it is inevitable, in anticipation of a deficit in paying salaries for the coming months.

He stressed that the future of salaries over the current year will be guaranteed, because the government is obligated to secure it to ensure its stability, especially since the World Bank ranked the Iraqi banking reserve at a good level, which allows internal borrowing.

Reports indicated that the salaries of employees, retirees and social security amounted to 52 billion dollars, which is more than 43% of the total expenditures of the state in 2019, and monthly salary allocations are estimated at about five billion dollars.

Concerns
and political expectations revolve - about trying to use the US financial crisis in Iraq - to offer loans to Iraq during the strategic talks between the two countries, expected to take place later this month.

In this regard, Cougar indicated that there is no general trend regarding determining the borrowing side, but negotiations are determined, but there is no doubt that the major countries like America will have their own arrangement and special conditions, noting that borrowing from neighboring countries is easier.

Provisional solutions
In the opinion of the economist, Antoine, that part of the problem facing Iraq is the loss of competencies in managing the economic file, and the dominance of the political decision, indicating that the loans will carry Iraq greater than its energy, due to its benefits, in addition to that it is a type of consumer loans and not investment expected to generate Profits.

Antoine explained to Al Jazeera Net that the state apparatus should be restructured, the higher salaries be reduced, and the allocations that make up of the total salaries should be reviewed at 65%, specifically the higher grades.

He said that the high oil prices in the global market would help in resolving the crisis, but it is not an ideal solution, calling for activating the productive and private sectors, and transforming the economy from rents to production, so that the state will enjoy economic stability in the long run.

Source: Al-Jazeera

 

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