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Al-Kadhimi reveals the details of the "white paper"


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Al-Kadhimi reveals the details of the "white paper" - SHAFAQ News

 

2020/06/22 09:09:55

Shafaq News / Prime Minister Mustafa Al-Kadhimi revealed, on Monday, the details of the "white paper" prepared by the Council of Ministers that includes economic, financial and administrative reforms; while identifying 4 sectors to address in the current situation.

"Today, Monday, the Prime Minister held a meeting with the Chairman and the members of the Parliamentary Committee on Economy and Investment, during which the white paper prepared by the Council of Ministers was discussed. This paper includes economic, financial and administrative reforms, as well as plans and strategies to meet the challenges facing the country", as by a statement issued by Al-Kadhimi's office, and received by Shafaq news agency.

Al-Kadhimi said that, "His government prepared a "white paper" for the forthcoming reforms. The preliminary recommendations discussed prior to forwarding it were taken into consideration", emphasizing the need for complementarity between the government and the parliament to support these reforms.

Moreover, He pointed that, "mismanagement and absolute dependence on oil revenues is what brought us to this situation. We seek to address this situation by working to activate the sectors of agriculture, industry, tourism, investment and others to maximize the country's imports".

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39 minutes ago, Pitcher said:

Al-Kadhimi reveals the details of the "white paper" - SHAFAQ News


Hey Wait A Second ! Is This White Paper Referring To The Great ‘Charmigeddon’ Toilet Paper Shortage Of 2020 - Or Their Currency ? :o 

 

:D  :D  :D 

 

 

LINK

Al-Kazemi and Parliamentary Economy Discuss the White Paper prepared by the Council of Ministers


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22nd June, 2020


The Prime Minister, Mustafa Al-Kazemi, held today, Monday, a meeting with the Chairman and members of the Parliamentary Committee on Economy and Investment, during which the white paper prepared by the Council of Ministers was discussed, and includes economic, financial and administrative reforms, plans and strategies to meet the challenges facing the country.

Al-Kazemi listened to the proposals and opinions of the members of the Parliamentary Committee, the vision of the committee regarding the proposed solutions, and the obstacles facing the process of developing the Iraqi economy and activating the various sectors.

Al-Kazemi stressed the importance of the current stage witnessing more cooperation between the executive and legislative branches, in a way that leads to citizen service and achieving the public interest of the country, and overcoming the challenges he faces, indicating his keenness to hold continuous meetings with parliamentary committees and representatives, as this communication reflects positively on The progress of conditions in Iraq.

He also stressed that his government prepared a white paper for the expected reforms, and made preliminary recommendations that are being discussed before taking them forward, indicating the need for complementarity between the government and the parliament to support these reforms.

He pointed out that mismanagement and absolute dependence on oil revenues is what brought us to the situation that we are currently witnessing, and we seek to address it by working to activate the sectors of agriculture, industry, tourism, investment, and others to maximize the country's imports.

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LINK

Al-Kazemi: The government prepared a white paper for the expected reforms

Al-Kazemi: The government prepared a white paper for the expected reforms

 

06/22/2020 16:19:57
 

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Al-Kazemi announces that the Cabinet has prepared a white paper for economic and financial reform  LINK

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2 minutes ago, DinarThug said:

Al-Kazemi announces that the Cabinet has prepared a white paper for economic and financial reform  LINK

 

Parliamentary Finance reveals a reform paper that will soon be adopted to solve 3 complicated files

 

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Economie 06/2120 2020 11:47 170 Editor: Zs    


Baghdad today - Baghdad 
 

The decision of the Parliamentary Finance Committee MP Ahmad Al-Saffar revealed on Sunday (June 21, 2020) a comprehensive reform paper that will be adopted soon on the financial crisis in the country. 

Al-Saffar said in an interview with (Baghdad Today), "The government prepared a very important reform paper, which is matched by another paper prepared by the Finance Committee, which included the opinions and proposals of all members of the committee, who will be unified in one unified paper and presented to Parliament soon in order to adopt it to take its path in the actual implementation." 

He added, "The comprehensive reform paper represents solutions to three important files in Iraq, which are maximizing financial resources, rationalizing consumption and controlling the current financial crisis."

The member of the Parliamentary Finance Committee, Jamal Cougar, revealed (15 June 2020), the numbers of a new plan by the committee to present it to the government in order to address the current financial crisis. 

Cougar said in an interview singled out (Baghdad today), "Parliamentary finance is working on preparing a new plan to address the current financial crisis that the country is going through focusing on five main axes." 

He added that "the first axis is the restructuring of the country's general federal budget bill for the year 2020 to send it to the House of Representatives and determine the deficiencies in it, and review it in earnest to determine the doors of corruption in it and waste of public money and necessary and unnecessary paragraphs." 

And that "identifying the resources of the other country and diagnosing the defects in it regarding the non-return of those funds to the state treasury, 

while the third paragraph focuses on a serious review of the contracts from which the licensing rounds and armament contracts were concluded."

He explained that "the fourth axis is to identify the doors that need to be austerity, downsizing or internal borrowing,"

noting that "the fifth paragraph, which is the most important, focuses on dealing with the files of aliens and double-salaries, and the detection of corruption files in the joints of state institutions."

LINK

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Al-Bukhati reveals a great investment step in Iraq

 
Al-Bukhati reveals a great investment step in Iraq
 
 
06/22/2020 15:04:28
 
 
The MP revealed on Monday the wisdom block, Jassem Al-Bukhati, on a major investment step that will be applied in Iraq during the coming period.

 

Al-Bukhati said in an interview with {Al Furat News} that “a meeting of the Parliamentary Services Committee was held and we went towards there to be a conference on a package of reforms, including going to invest in alternative methods, not old ones,” noting that “these roads connect Baghdad with the provinces and connect the provinces with each other".

He added that "the President of the National Authority for Investment and the Ministry of Construction and Housing was hosted and we went towards the convening of the conference through which we will call the local investment authorities," stressing that "the goal is to simplify the procedure to launch a package of ways to invest."

And Al-Bukhati said that "investment today is the slim way to solve economic problems in the country in light of the great financial crisis that it suffers from, and it is not possible for it to implement roads or infrastructure except through investment," explaining that "the meeting examined a group of matters related to investment."
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The Minister of Finance informs the parliament about the government's plans to prepare the 2021 budget


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11:40 - 22/06/2020


The decision of the Parliamentary Finance Committee, Ahmed Al-Saffar, revealed on Monday that the government is currently preparing a budget of 2021 according to the Financial Management Law, stressing that Finance Minister Ali Allawi has officially informed us of the preparation of a new budget.

Al-Saffar said in a statement to "Information", that "the government started preparing the 2021 budget according to the Financial Management Law," noting that "the government did not refrain from sending the 2020 budget to the House of Representatives."

He added that "a session after tomorrow, Wednesday, will witness the government's request to confirm sending the 2020 budget, even half a year, to override the mistakes of the 2014 budget."

The deputy of the Alliance of Al-Fath Muhammad Al-Baldawi described in a previous statement to “The Information”, the government directs not to approve the financial budget for the year 2020 as an unethical and frustrated step. 
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19 hours ago, DinarThug said:

Let’s Bro ! :o        :D  :D  :D 

especially in approving oil and gas laws and the distribution of national wealth."

 

LINK

Negervan Barzani from Baghdad: It is time to finally solve problems with a comprehensive agreement

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21st June, 2020

 

The Kurdistan Region Presidency issued, on Sunday, a detailed statement on the meetings of the region's president, Nechirvan Barzani, with the three presidencies and Iraqi leaders in the capital, Baghdad

A statement received by Shafaq News quoted Barzani as confirming that it is time to reach a common understanding and resolve all files

The Presidential statement added that "President Nechirvan Barzani, during his talks with the three presidencies, leaders and Iraqi parties, considered the problems and responsibilities as being common to all Iraqis, and said that all of us are one fate and the problems of Iraq and the Kurdistan Region are the problems of all Iraqis

"After the bitter experience of years of differences and problems between the two sides, we must not go back to the past. Rather, it is time for us to reach a common understanding and solve the problems once and for all through a comprehensive agreement that satisfies both parties and provides security, stability, justice and progress to the present and future of Iraq," Barzani stressed

The President of the Kurdistan Region described the situations and challenges as harsh, and said, "Crises can be transformed into opportunities, cooperation and joint action to face the current difficulties and crises in the country, which is a shared responsibility of all. He explained, "The persistence of problems is not in the interest of any party, and together we can, through cooperation, reach a common understanding of how to better manage the country in order to provide services to all citizens

Barzani also stressed "the Kurdistan Region's readiness to resolve all outstanding problems and files with the federal government on the basis of the constitution and taking into account the federal system, rights, duties and current priorities of the lives and livelihoods of citizens". It is a must for all

For their part, the leaders and Iraqi political parties described Barzani's visit at this time and under these circumstances according to the statement as "a positive message and a correct step for the Kurdistan Region towards Baghdad and a sign of goodwill to solve the problems", and they expressed "their satisfaction with the Kurdistan Region's readiness for dialogue and a final solution to the problems and reaching an agreement with The federal government

The statement pointed out that "Barzani met on the first day of his visit to Baghdad, in the presence of his two Vice Presidents, the President of the Republic, the Speaker of the House of Representatives, and the representative of the United Nations Secretary-General in Iraq, as, today, Sunday, June 20, 2020, with Ammar al-Hakim, head of the al-Hikma Movement, and Hadi al-Amiri Head of the Al-Fateh bloc, and Nuri al-Maliki, head of the State of Law coalition, and the political body of the Sadrist movement

During those meetings, they discussed and discussed "the relations between the Kurdistan Region and the Iraqi federal government, the efforts made and dialogue to solve the problems between them, the current conditions of the country and the new federal government assuming its duties, the financial crisis and the repercussions of the Corona epidemic, with the risks of   terrorism and the expansion of ISIS movements and attacks in Iraq

The importance of cooperation and coordination between the Peshmerga and the Iraqi army, and the continued support of the international coalition against ISIS, the role of the United Nations in Iraq, the protection of the sovereignty and borders of the country, and the development of relations with neighboring countries, the region, and the world based on mutual respect and common interests, were also emphasized

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The Kurdistan government announces sending a high-level delegation to Baghdad: We are ready for a radical solution to the problems

 

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22nd June 2020

 

The President of the Kurdistan Regional Government, Masrour Barzani, today, Monday, 22 June 2020, supervised a special meeting on the talks with the Federal Government, with the participation of Deputy Prime Minister Qubad Talabani, through a closed video circuit with a video conferencing system

In the meeting in which members of the negotiating delegation participated, discussions were held on the latest results of the talks and ways to resolve outstanding problems with the federal government under the constitution, with the aim of reaching an agreement that guarantees the securing of constitutional rights and entitlements for the Kurdistan Region

The President of the Kurdistan Regional Government said during the meeting: "We are ready to radically solve all problems with Baghdad and fulfill our obligations in exchange for securing our constitutional rights and entitlements, and reach a comprehensive agreement that satisfies both parties and defines the rights and obligations of each

He pointed out that resolving the problems between the two sides is in the interest of all Iraqi citizens, which is an important factor for stabilizing the region

It was decided at the meeting to send a high-level delegation to Baghdad headed by the Deputy Prime Minister on Tuesday
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LINK

A high-ranking delegation from the region will visit Baghdad tomorrow .. and Barzani: We are ready for a radical solution and a comprehensive agreement

A high-ranking delegation from the region will visit Baghdad tomorrow .. and Barzani: We are ready for a radical solution and a comprehensive agreement
 
06/22/2020 13:09:18

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Kurdistan Region President returns to Erbil after intensive discussions in Baghdad   LINK

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4 minutes ago, DinarThug said:

A high-ranking delegation from the region will visit Baghdad tomorrow .. and Barzani: We are ready for a radical solution and a comprehensive agreement


’Oil And Gas Laws’ Anyone ? :o 
 

 

Bueller ...

 

:D  :D  :D 

 

 

LINK

Deputy: Governmental green light to accelerate the pace of investment in the largest gas fields in Iraq

 
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13:50 - 22/06/2020

Member of Parliament Abdul Khaleq Al-Azzawi revealed on Monday a government green light to accelerate the pace of investment in the largest gas fields in Iraq.

Al-Azzawi said in a statement to "Information", that "Al-Mansouriya Ghazi fields in the far east of Diyala is one of the largest and most important gas fields in Iraq because of its large reserves in addition to its strategic location near Baghdad, which constitutes an important point in the possibility of extending all the gas stations to generate electric power." 

Al-Azzawi added, “Government orders representing a green light were issued in order to accelerate the pace of investment in the Mansuriyah fields and start actual production due to the importance of gas as a wealth no less important than crude oil, especially since the level of demand to buy it in international markets is very high in addition to that it will reduce the import of gas and ensure providing more hard currencies to the country’s treasury.”

Al-Azzawi expected that "the coming months will witness good results in the field of Mansuriya gas investment and push it to actual production, especially as the Mansuriyah gas station that produces approximately 700 megawatts will be the first beneficiary of Iraqi gas to support the national energy organization." The Mansuriyah gas fields are among the most important and largest of the Iraqi fields, which are located in the far east of Diyala and consist of several wells that were discovered decades ago and did not come into actual production due to many factors. 
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A banking expert recommends switching to a digital economy

WhatsApp-Image-2020-06-22-at-6.35.22-PM.jpeg

 

22nd June, 2020


Member of the Board of Directors of the Federation of Arab Banks and Chairman of the Board of the International Development Bank, Ziad Khalaf, when participating in the virtual financial conference organized by Frontier Exchange Company, presented a detailed analysis of the reality of the Iraqi economy and ways to advance the reality of the Iraqi economy and bring it to safety.

Khalaf said during the conference, which witnessed wide international participation via an electronic circuit: “The world and our Arab region live in an exceptional situation in light of the spread of the Corona virus and its wide effects on most economic sectors, according to the reports of the World Bank and the International Monetary Fund, which is expected to shrink The world economy increased by 5.2%, and the Iraqi economy increased by 4.7% during the year 2020.

It is expected that this deflation will represent the most severe recession since the Second World War, and one of the main reasons for this deflation is the decrease in oil prices by about 50% to reach the lowest level in 20 years as a result of the decline in oil production and restrictions on travel and the movement of individuals due to stone and closure, in addition to the decline in interest rates to zero levels And negative in some global central banks, as well as the decline of the main stock indexes to more than 35%, and its impact on the performance of global financial markets.

Decline in oil exports

He added, "On the level of Arab economies, the implications can be summed up in the impact of the exports of Arab countries by the decline in global demand by at least 50 percent, which is responsible for generating about 48 percent of the gross domestic product, as well as the decline in oil and non-oil exports, in particular it will be affected Arab economies are slowing demand by a number of their trading partners, as the countries affected by the Corona virus are currently considered one of the most important trading partners of the Arab countries as they absorb 65% of Arab exports.

Most of the world experts

A representative of the company, "Forintir Exchange" Ahmed Al-Jadir explained that "Iraq is an important economic center and this is something that all global economies realize, as most of the world experts assert that Iraq can be a tiger economy eighth in the world and this is not a complicated or inaccessible matter in light of the availability Natural and human resources.

Economic sectors

Khalaf went back to clarify, "The Arab countries were affected by a partial halt to local production in a number of economic sectors, the most important of which are the productive services sectors, especially the tourism, transport and internal and external sectors. These sectors collectively are responsible for generating about 40 percent of the GDP, and certainly the Arab oil exporting countries were affected. From the decline in foreign exchange receipts in light of a possible decline in export levels as a result of the spread of the virus, and the decline in remittances of workers abroad that contribute to rates exceeding 10 percent of the GDP in some of these countries. To 40 million citizens, in addition to the impact of this small and medium-sized pandemic, and therefore things combined will necessarily lead to an increase and deepening the budget deficit for most Arab countries.

Digital economy

He emphasized that "the role of the private and public banking sector comes to coordinate with the national units of partnership between the public and private sectors so that our first goal is to proactively provide support to the Iraqi economy through three main axes represented in the transition to the digital economy with Iraqi leadership in light of the Iraqi government's tendency to play a leadership role in Creating regional economic integration, which will lead to a reduction in the commercial cost and the creation of new jobs by 2% and an increase in the volume of commodity trade. This can only be achieved through the establishment of strong infrastructure that includes 4 main networks: electronic trading companies, banking and financing institutions, Insurance companies and technology companies. These four pillars collectively form the basis of the true digital economy.”

And he added, "This is what we have worked on in our group since its founding to develop a strategy through the adoption and operation of the latest advanced practical technologies from systems, devices, means of communication and protection, and at the same degree employing the latest systems related to laws and compliance laws and institutional governance, in the forefront of which the International Development Bank adopted the latest practical applications And global in this area, which supports his ambitions and strategic goals in leadership.

Crisis Management

And that Iraq possesses the ability to play a pivotal role in leading an economic renaissance through its adoption and sponsorship of the transition to the digital economy, which leads to congruence and economic integration, and to work on real partnerships between the public and private sectors aimed at managing crises and recovering from their effects to support projects, especially faltering and To prevent their stumbling, pointing to the necessity of supporting the health sector and its development and supporting the pharmaceutical industry, the truth is that Covid 19 revealed the major gaps in the health system not only at the level of Iraq but also at the level of the whole world and the negative impact of that on the economy and public health.

The medical section

He emphasized that “within the IDB’s strategic plan to sponsor investment projects in various sectors, the most important of which is the health sector through the Memorandum of Understanding signed between the International Development Bank and the International Finance Corporation IFC, one of the World Bank’s arms for the purposes of financing foreign trade operations and providing banking products and solutions to Iraqi companies in the face of Challenges and changing conditions in our Iraqi economy, and it is worth noting that in April 2020, the World Bank’s Board of Executive Directors approved the launch of a first set of emergency support operations for developing countries around the world, using the assistance of facilitating rapid and ad hoc funding to tackle a virus Corona Novelty. ”

The strongest pillars

Khalaf focused on "the importance of the transition to industrial and agricultural economics in order to be an effective penalty in the economy. The industry is one of the most powerful pillars of the Iraqi economy to get it out of a rentier economy to a productive economy, as it is the cornerstone that can be built on to launch a vital economy with positive effects that have a fundamental impact on other sectors, so that they are a factor of attracting and attracting funds and securing job opportunities and moving the growth wheel, and this is what has been done Work on it by the International Development Bank through its effective contribution to the initiative of the Central Bank of Iraq in financing small and medium projects.

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Dialectical dialogue between Dr. Ward al-Aqili * and d. Bariq Shipper ** about financial and monetary policies in light of the crises facing the Iraqi government

 

06/20/2020

 

Barik-und-Wared.jpg
 

Dr. Ward Najm Al-Okaili (hereinafter Dr. Ward) commented on the statements of Dr. Bareq Shubar to Radu site on 8/8/2020 in the "Elite Economic Group" on WhatsApp, with the presence of 178 members of the group consisting of businessmen and elite academics in addition to a number of senior officials in the Iraqi state, and the following controversial dialogue took place between them.

 

Dr.. Take:

I respect very much Dr. Bariq's publications, but I think recommending internal borrowing will only make matters worse and remind us of the austerity policy adopted by the previous government.

 The domestic financial situation is witnessing a severe shortage of liquidity, the suspension of many private businesses and the increase in unemployment. This requires pumping more domestic liquidity and not withdrawing it from the market. It also requires professionals to urge officials and the media to refrain from calls for measures that lead to an increase in the need for liquidity, as it will exacerbate the damage of the private sector and increase the level of local unemployment, and thus will reduce people's incomes and increase the pressure on the government and its demand to continue providing aid and honors.

 I believe that all calls should be made in this circumstance to support the private sector, its institutions and businesses through operational packages to overcome its repression resulting from the policies of previous governments, adding to the conditions of the demonstrations and stopping the formation of the government and Crohn's disease. The government must accelerate the provision of these packages, it is a thousand times better than stopping private activity and turning the millions who live in this sector into an added burden on the government.

 By the way, increasing domestic liquidity does not only mean increasing the amount of cash printed, but also includes increasing banking transactions and increasing confidence in the banking system and leaving the exchange rate to the dollar for market forces by a certain amount calculated by reducing the amounts of dollar sales and adopting the multiple price policy or the two-price policy to separate the import of basic commodities and materials Supported priority between importing luxury and unnecessary goods that can be produced locally.

 As for the claim that this increases the level of inflation, it is a theoretical claim that depends on the concept of imported inflation only and wants (in terms of whether or not he intends) to keep the level of the cheap dollar exchange rate as it is.

 I sincerely apologize to Dr. Bariq, the esteemed, but I think what was published was fragmented in a way that affected its content.

 Dr.. Sparkle an inch

My Excellency Ward Ward Najm. I welcome your criticism of my intellectual thesis, and I do not need to apologize, because I do not see in your intervention a derogation from my personality, but an open dialogue of my thoughts.

 I fear that you misunderstood my recommendation for internal borrowing as an alternative to external borrowing in the event that this is required to finance an expected fiscal deficit in the next budget. There is no need to explain the reasons that will lead to the emergence of an inevitable decrease in state revenues, as they are known to all because of the collapse of oil prices in half compared to last year.

 I do not recommend any borrowing, internal or external, but the financial conditions will make it necessary for the country to borrow, especially since you are demanding financial packages to revitalize the economy as other countries do.

 Let me show you how other countries finance these packages. The German government, for example, has approved a supplementary budget for this year of 150 billion euros and will borrow the entire amount from financial markets by issuing government bonds. The US government has approved a $ 3 trillion package and will finance that with a loan from the US Federal Reserve, thereby increasing the government’s debt to the Fed by $ 27 trillion. America is the only country in the world that imposed its currency on us as an international currency. Until the beginning of the 1970s, it was covered with gold. After that, it became exposed without cover, but it was imposed on Saudi Arabia to sell its oil in dollars and other oil countries followed. Iraq has a successful experience in overcoming the financial crisis in the years 2014-2017, where the budget deficit was funded through the issuance of the so-called government permits, which are short-term bills-like securities sold to local banks and allowed banks to deduct them from the central bank. This means creating cash and pumping liquidity into the economy. The government that received the amounts of these loans disbursed them, that is, to return them to the economic cycle.

 Dear Sir, these are the ABCs of Economics, which I have been practicing professionally for 45 years, because I know what I'm talking about. And what concerns the risk of inflation by printing money without covering it is a fact witnessed by all who lived in Iraq during the siege period, and I personally lived through it indirectly through my dollar transfers as monthly salaries for 9 families except for aid and other donations.

 With appreciation and respect for your honorable person.

 Barik Muhammad Reda Shebar - Berlin

 

Dr.. Take a star

Greetings to you, our honorable doctor.

 I would like to add the following comments to you for the purpose of scientific and practical benefit:

 Germany and the United States will finance its issuance from the primary market. America will borrow from the federalist who will pump (additional new money). As for domestic borrowing from the secondary market, it is a process (recycling) of domestic liquidity and there is no new cash addition.

 Dr.. Glamorous

this is not true. Any borrowing from government or private banks represents an addition to deposits with the banking sector in favor of the customer from the non-banking sector (producers, consumers and the state). This means issuance of money (Money Creation) and with it increase the liquidity meaning the money block in the narrow sense M1 . The government's borrowing from banks is considered the primary market, but selling these bonds or treasury transfers to the central bank is called the secondary market. With the deduction process, the banking sector receives the dinar that was sleeping in the treasury of the Central Bank. Look An article by the expert on monetary policy and researcher at the Central Bank, Hussein Atwan And the controversy with the government economic adviser d. Abdul Hassan Al-Anbuge, published on the website of the Iraqi Economist Network.

 Dr.. Take

Economic theories emphasize the need to inject (new liquidity) in such circumstances. And if there is a theory based on the concept of (rotating) liquidity, I would be grateful to those who guide us for it.

 Dr.. Glamorous

There is no disagreement about the task of monetary policy in managing the money supply (the monetary block), which is subject to daily money creation ( i.e. money creation), i.e. injecting new liquidity by banks when it gives loans to non-banking sectors including the private sector on the part of the money destruction (Money destruction) In the language of the central bank, sterilization is cash, that is, the withdrawal of liquidity from another side.

 Dr.. Take

The conditions for printing the Iraqi currency in the 1990s are completely different from the current conditions. Iraq at that time was forbidden to export oil, but now it sells oil and holds the dollar and can raise the exchange rate to a higher level as happened in Lebanon or the adoption of multiple price policy or at least leave the exchange rate to determine market forces and the Iraqi dinars will increase in volume against the dollar to greater needs Current and future.

 Dr. Barik

The problem does not lie in printing the currency (paper dinar) per se, as this process is currently under way as I understood it from an official in the central bank, where the printing and printing of the dinar is in the treasury of the central bank and does not come out of it only after the bank receives for that dollar from the Ministry of Finance (the monetary process ) Or from the private sector and through its export or tourism activities. This, unfortunately, is not present in Iraq, unlike the situation in Lebanon, Jordan, or Turkey. As you know, the only source of foreign currency is the Iraqi government, which has a monopoly on the export of crude oil. The central bank law prevents it from lending to the government by withdrawing from foreign currency reserves because the function of this reserve is to finance the deficit in the trade balance and the balance of payments and not the fiscal deficit in the public budget. In the event that the law is exceeded, the value of the Iraqi dinar will decrease against the dollar.

 Regarding the idea of floating the Iraqi dinar, this will actually lead to increasing the volume of Iraqi dinars, but to the loss of its purchasing power in the absence of local production that covers the volume of domestic demand, in the absence of export and tourism industries that can supply the country with foreign currency, as is the case in Turkey.

 Dr.. Take

The whole world (after krona) will return to the old economics theories (self-sufficiency) in an attempt to ensure that most of its needs are met locally after the krona pandemic crisis demonstrated structural and practical weaknesses in theories of specialization and comparative advantage, and we in Iraq are still (talking) only about supporting the sector The private. How do you think turning words into action without pumping huge new liquidity into the local market and limiting this import diarrhea? How is this pumping done without increasing the size of the local currency and increasing banking?

 Dr.. Glamorous

I don’t know what do you mean by ancient economics theories and their relationship to self-sufficiency. According to my reading of the history of economic thought, the Mercantilist theory is considered one of the oldest economic theories (the seventeenth century, in the early capitalism stage and the process of accumulation of primitive capital, which coincided historically with the domination of the colonial powers over the countries of Africa and Asia and the plunder of their wealth). This theory promoted self-sufficiency in the sense of concentrating production inside the country and creating cash (in today's concept of monetary issuance) by achieving a surplus in the trade balance by all possible means, including the use of force and waging wars against other countries. Colonial Britain used this method in India with the destruction of the local textile industries and forcing them to grow and export cotton in order to be manufactured in Britain and then exported to India. This theory views foreign trade as a winning-losing process according to the zero equation. In recent years, this theory has reappeared in a new garment, as practiced by President Trump under the name "America First" and declaring trade war on all countries that enjoy comparative advantages and achieve surpluses in their trade balance. It is clear that Trump's pure trading mentality and zero-based game does not realize that most countries ’trade surplus returns to America to buy government bonds or US shares.

 Unlike the old mercantile theory that builds on a large state intervention in the economy, the classical theory that emerged in the eighteenth century with the beginnings of the industrial revolution relies on market forces as the invisible hand that coordinates the conflicting interests of producers and consumers and achieving balance in the market. Adam Smith and David Ricardo laid the intellectual foundation for economic liberalism and freedom of international trade, and Ricardo demonstrated his well-known model and numbers of benefits countries derive from labor distribution and international specialization. Since then, international trade has been growing and prospering at very high rates, and with it the pace of globalization of production and financial markets has increased after the end of the Cold War in the early 1990s.

 We agree on the need to support the private sector, not with government words and promises, but through a comprehensive program and policy package that is not only limited to pumping cash liquidity, but must include the provision of material requirements from qualified infrastructure and human resources as well as legal frameworks and investor protection.

 Dr.. Take

Your honorable side knows that the level of inflation is not necessary to rise in the case of an increase in the size of the monetary block, but that it can decrease even if the mass increases or increases its rotation if the additional local production volume is higher than that increase, and it is strange that everyone focuses on one side and neglect the side The second is (volume of production).

 Dr.. Glamorous

It is true. But as I mentioned, Iraq lacks a local agricultural and industrial production that covers the country’s need. And the past years attest to the leakage of purchasing power generated by government spending outside the country, as you have described in the form of import diarrhea.

 Dr.. Take

I remind everyone of the actions of the Ministry of Agriculture, which was subjected to a lot of attack and criticism, but the ministry held out and its work was in the interest of Iraq and the market was filled with local agricultural products with low prices, and if we remained on the chaos of importers and beneficiaries, the food situation in Iraq would be tragic.

 Dr. Barik

These are encouraging beginnings and I have previously called for focusing on agricultural development: a top priority because investment in them is relatively little and the return is fast compared to industrial expansion. The growth of agricultural production will provide a good ground for industrial development, especially for food industry Agro Industry

Dr.. Take

Most economic theories in the event of a dual confrontation (unemployment - inflation) is concerned with tackling unemployment even if inflation increases, but I personally think that Iraq has a special advantage as it can reduce unemployment without exposure to large (domestic) inflation by adopting a correct monetary policy. Do you, my honorable Janab, agree that wasting millions of dollars to import trivial goods that can be produced locally, or the central bank’s investment in (foreign) investments, the lack of improvement in the local banking system, the lack of confidence in the banking deal, or the failure to finance local production sector activities Is monetary policy so bad?

 Dr.. Glamorous

Yes, I completely agree with you, but the foreign currency reserves should be preserved to finance the necessary imports that go into the process of domestic production of capital goods and advanced technologies.

 Dr.. Take

With my sincere regards and appreciation.

 Dr.. Glamorous

I greatly appreciate and respect your sincere and inspiring views on the dialogue.

 I thank fellow Mesbah Kamal for reviewing the original text and editing it linguistically. 

Sparkle an inch

(*) Industrialist, Iraqi businessman and civil activist

(**) International economist and global coordinator of the Iraqi Economist Network

Copyright reserved for the Iraqi Economist Network. Republishing is permitted provided the source is indicated. June 21, 2020

To download a PDF file, click on the following link

A dialectical dialogue between Dr. Ward Najm Al-Okaili and Dr. Bariq Shubr on financial and monetary policies in light of the crises facing the Iraqi government - liberated

Edited by DinarThug
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Planning and the Securities Commission discuss the reality of the stock market and its role in dealing with the crisis

 
Planning and the Securities Commission discuss the reality of the stock market and its role in dealing with the crisis
 
 
06/22/2020 12:54:13
 
 
Minister of Planning Khaled Battal Al-Najm discussed with the Chairman of the Securities Commission the reality of the stock market and its role in dealing with the financial crisis.

 

A statement by the Ministry stated that "the Minister met the Chairman of the Securities Commission Alaa Abdel-Hussein Al-Saadi, and during the meeting, the reality of the Authority's work and its role in supporting the national economy in light of the current crisis was discussed, and working to amend its law, in line with the importance of the stock market, stock trading, and corporate support Specialized in this field."

The statement added that "the meeting witnessed a discussion of a number of issues related to the economic reality, and unifying efforts towards finding solutions and remedies for the crisis, removing bottlenecks and tackling the structural problems that the Iraqi economy suffers from."

He continued, "During the meeting, emphasis was placed on following up the file of government contributions in mixed public joint-stock companies, and the possibility of benefiting from these contributions to meet part of the expenses."

He referred to "calling for a reassessment of the assets of public companies owned by the state, with a view to identifying the potential of these companies, and setting the appropriate mechanisms to convert them into profitable companies," stressing "work on developing the methods and methods used in stock trading, in a way that contributes to broadening their horizons and their contribution In support of development in Iraq."
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The Iraqi government is turning to domestic borrowing to secure June salaries and avoids savings

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22nd June, 2020

 

The Parliamentary Finance Committee revealed, on Monday, that the Iraqi government went to the Central Bank to secure employee salaries for the month of June

Iraq suffers from a severe financial crisis, caused by the collapse of oil prices in global markets

Iraq relies, which is the second largest oil exporter in the Organization  of "OPEC", on the sale of crude revenues to finance about  95  percent of state spending

"The government does not have the cash to pay the salaries of the employees, and it will go to local borrowing to secure the salaries, as it did last May," committee member Jamal Couger told Shafaq News

He added that "the government will go to borrowing from the Central Bank of Iraq to provide financial liquidity and secure employee salaries for the month of June, which exceeded five trillion dinars per month

Cougar noted, "The government is not ready to open an opposition front of employees in the event that their salaries are saved, deducted or delayed

Parliament held a preliminary discussion of the draft of the domestic and foreign borrowing law, to finance the fiscal deficit during the current year

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Deputy: A number of MPs recovered from Corona and Wednesday, we will vote on the borrowing law


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16:27 - 22/06/2020
 
 

MP Amjad Al-Uqabi confirmed, on Monday, that a number of members of Parliament were infected with Corona virus, but they recovered, noting that this week will witness a vote on the borrowing law.

Al-Aqabi told Al-Maaluma that "a number of members of the legislative authority have recovered from Corona after contracting the virus during the past few days." Without disclosing their names.

He added, "Next Wednesday will see a vote on the law on external and internal borrowing," noting that "the oil and gas law will be included in the upcoming sessions."

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20 minutes ago, DinarThug said:

"Next Wednesday will see a vote on the law on external and internal borrowing," noting that "the oil and gas law will be included in the upcoming sessions."

Thanks DT

Moving Fast & Furious NOW!

 

giphy.gif

Edited by DWS112
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1 hour ago, DWS112 said:

Moving Fast & Furious NOW!

 

Hillarious DWS.

 

I need some help though.  This vid has created a disagreement in my family.  

4 of us see 2 wiener dogs chasing a brown dog and 2 of us see 4 dogs chasing the brown dog.  

 

What do do you see.  I think 2 members in my family are blind. 😂 😆 

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5 hours ago, brokerkeith said:

I don't know man, this mention of "White Paper" sounds kind of racist....

 

Pin on Products I Love  Toilet Paper When You Go To The Toilet Paper Aisle GIF ...

 

Maybe they should start making shades of black & rainbow colored toilet paper to satisfy ALL people, ALL things & ALL beings......or whatever they demand to be called.

:tiphat:


I wipe my ass with Hillarious paper.  A friend gifted it to me. 😂😂

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