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A road map for solving the financial crisis


yota691
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A road map for solving the financial crisis

Wednesday 15 July 2020 15th

A road map for solving the financial crisis

 
Muhammad Sahib al-Darraji, member of the House of Representatives
 


Given that the economic and financial situation in Iraq has reached the bottleneck stage, there must be solutions applicable to the near and far ranges, and through some professional experiences gained in the areas of executive and legislative governmental work, with accumulated experience of working in the private sector and touching the economic and service situation of the Iraqis at its various levels Here I would like to present a short-term roadmap to contribute to solving the financial crisis and protecting the economy of the country must be followed by medium and long-term measures to reform the Iraqi economy and find a clear economic doctrine for Iraq that changes the form of spending and financial resources for the country in a manner commensurate with the societal nature and global ruling conditions for energy prices and the diversity of means Production.

This plan is summarized as follows: -


First: The general budget

1 - A simple budget for construction and installation must be submitted and approved for the remainder of the year 2020 that clarifies the ruling real revenues and expenses and what relates to these two items only and the ways of filling the resulting deficit and without touching on any other items.
2 - Building a budget for the year 2021 on a sectoral basis and on a fixed oil price for the operational budget and a mobile for the investment budget, directing the budget for salaries, purchasing the ration and medicines, sterilizing water and the educational process only and listing items that encourage dependence on investment and the private sector to address other sectors so that these provisions govern the budget law All other laws and restrict them in favor of financing the unfunded sectors.
3 - Providing the final accounts for the past years and validating them to know the deficiencies in financing certain sectors in exchange for wasting other sectors in order to create an economic balance between the service and productive sectors. 
 
Second: - The cash block 
Withdrawing the mass stored in the society and trying to invest it in an investment through the following: -
1 - Raising the interest rate for cash deposits in banks even if the monetary authority is forced to support banks.
2 - Establishing projects in which the state contributes a certain percentage, and the rest is offered for subscription, especially in projects of city centers (dawn town) and major industrial projects such as petrochemicals (Nebras).
3 - Offering some of the winning companies (or that could win by changing the management tactic) for subscription like air navigation company, airlines, cement, fertilizers, and others.
4- Selling oil coupons locally. At the prevailing price now and buying it a year later at the prevailing price then.
5 - Building confidence between the state and the citizen by committing to pay interest and profits.
 
Third: - Oil licenses 
1 - Negotiating to postpone the dues of oil companies or pay them in kind outside OPEC's share.
2 - Evaluating company spending and reducing it to a minimum.
3 - Re-negotiation in consensual ways with oil companies to improve contract terms for the state when the oil prices drop.
 
Fourth: - Legislative procedures 
1 - Revoking the Coalition Provisional Authority's decision to ban the export of raw materials and the export of some materials, such as gravel, sand, and others.
2- Requiring the government to start licensing rounds to invest some mineral resources, such as phosphates, and others.
3 - Preparing a new salary scale that takes into account the economic situation and achieves social justice and encourages the employee to leave the job with a set of privileges outside the framework of the job.
4- Prepare a special bill to reduce all allocations granted under previous laws by a certain percentage.
5 - Amending some transitional justice laws and laws that have concessions that are no longer needed.
 
Fifth: - Governance and automation 
1 - The Ministry of Finance issues the e-dinar for the purpose of collecting government revenues and fees and what distinguishes them from being non-negotiable in the market as cash and thus we have reduced corruption in this aspect as well as the state's knowledge of the value of those imports quickly, provided that it is issued by a government bank and not through companies Eligibility.
2 - Encouraging and organizing electronic payment, obligating banks and institutions to electronic payment, and encouraging sales outlets in the private sector to use electronic payment devices without commissions and ensuring that their accounts are fed by the national exchange in the central bank daily.
3 - The necessity of automating the ports and customs and linking them to any process of transferring the dollar or opening bank credits for the purposes of import and controlling the border outlets and preventing militias and gangs from controlling them.
 
Sixth: - Monetary policy 
A- The exchange rate
1 - Begin to gradually reduce the price of the Iraqi dinar to reach 1500 dinars against the dollar until the end of the year 2020 and review the economic situation.
2 - And then start another reduction up to 1,800 within 6 months.
3 - Then we study the possibility of deleting the zeros, so we end with a fixed price of 2 Iraqi dinars per dollar. 
 
B - Methods to address potential inflation and the effects of the devaluation of the Iraqi dinar, so that this procedure is accompanied by the following steps: -
1 - Increase the nominal salaries for grades five to nine and increase the salaries of the social protection network by 12% to reduce the impact of potential inflation on the classes
 Fragile.
2 - Amending the currency selling mechanism to maintain the hard currency inside the country and that the dollar and other foreign currencies are sold and traded directly in the currency markets or through the stock market in order to get a real price of the Iraqi dinar against the US dollar and that the guarantor of the prices is the value of the available reserve The Central Bank of Iraq has hard currency.
3- Government projects pricing in the investment budget in dollars and financing the exchange units budget for the investment budget in dollars.
4- Setting an import platform, stopping some imports, controlling customs outlets, supporting the tax system, and exempting the local product from income tax for a period of two years.
5 - The state imports commercial foodstuffs into the market and injects it into the ration program in the event of high prices.
6 - Supporting fuel for public transport, factories and irrigation projects, and giving high relative importance to the food industries.
7 - Pumping a hard currency to the exchange markets to maintain the price level of the Iraqi dinar, which prevents price fluctuation due to possible speculation.
8 - Activating the role of economic security and entering the relevant government agencies to control the cash rhythm in the currency market and the food market.
 
Seventh: State property 
1 - Optimize unexploited government assets from real estate, buildings, vehicles, furniture, etc. by selling them or entering into investment partnerships. 
2 - Sale of lands that were overlooked for those overruns at the same rate to give an excuse for recovery from those who do not pay (and vice versa it cannot be recovered and the outposts returned)
 
Eighth: The private sector 
1- Raise the credit limit of government banks to give loans.
2 - Activating the central bank loan initiative and easing guarantees for industrial, construction and agricultural projects, while controlling payments and linking them to completion rates and opening credits to move the private sector.
3- Finding ways through joint financing or external borrowing to finance government-funded projects and completing projects with proportions
 High.
4- Reducing the restrictions of letters of guarantee and their expenses for ongoing unpaid advances due.
5 - Displaying productive projects for the purpose of investing them by the implementing agencies in exchange for completing them and entering the service.
6 - Moving the housing fund and real estate bank loans to move the construction sector, which withdraws unemployment, being the largest operator 
For employment.
7 - Increasing taxes on imported commercial products and reducing them from imported raw materials to encourage the national product.
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Sixth: - Monetary policy 
A- The exchange rate
1 - Begin to gradually reduce the price of the Iraqi dinar to reach 1500 dinars against the dollar until the end of the year 2020 and review the economic situation.
2 - And then start another reduction up to 1,800 within 6 months.
3 - Then we study the possibility of deleting the zeros, so we end with a fixed price of 2 Iraqi dinars per dollar. 
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13 minutes ago, utah rock said:
1 - Begin to gradually reduce the price of the Iraqi dinar to reach 1500 dinars against the dollar until the end of the year 2020 and review the economic situation.
2 - And then start another reduction up to 1,800 within 6 months.
3 - Then we study the possibility of deleting the zeros, so we end with a fixed price of 2 Iraqi dinars per dollar. 

 

so the suggestion is mid year 2021 to study the delete the zeros project for 2 to 1 , does he not know they have already spent years studying the delete the zeros project ? dredge up those and no need to revisit ... letsroll

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37 minutes ago, yota691 said:
1 - Begin to gradually reduce the price of the Iraqi dinar to reach 1500 dinars against the dollar until the end of the year 2020 and review the economic situation.
2 - And then start another reduction up to 1,800 within 6 months.

"The relationship: the devaluation of the dinar should not be the first line of defense to confront the financial crisis" - Central Bank Governor Ali Al-Alaq      LINK

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2 hours ago, utah rock said:
Sixth: - Monetary policy 
A- The exchange rate
1 - Begin to gradually reduce the price of the Iraqi dinar to reach 1500 dinars against the dollar until the end of the year 2020 and review the economic situation.
2 - And then start another reduction up to 1,800 within 6 months.
3 - Then we study the possibility of deleting the zeros, so we end with a fixed price of 2 Iraqi dinars per dollar. 

flog.....they cant wait that long now and wont

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8 hours ago, yota691 said:

B.2 - Amending the currency selling mechanism to maintain the hard currency inside the country and that the dollar and other foreign currencies are sold and traded directly in the currency markets or through the stock market in order to get a real price of the Iraqi dinar against the US dollar and that the guarantor of the prices is the value of the available reserve The Central Bank of Iraq has hard currency.

The IMF have stated that they will not accept a country into Article 8 that employs a MCP practice (Multiple Currency Practice). Second, as long as the dollar is worth more than the Iraqi Dinar, the dollar will still be king inside of Iraq. Therefore, no Iraqi in their right mind is going to accept the value of the dinar that is worth half as much as the dollar while the USD can still be used within the borders of Iraq. They need to do away with the USD altogether (dedollarize) as the official trade mechanism if they want to RV at any amount, even if that amount is 1800 dinar to 1 USD or 2 dinar to 1 USD. 

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8 minutes ago, Theseus said:

The IMF have stated that they will not accept a country into Article 8 that employs a MCP practice (Multiple Currency Practice). Second, as long as the dollar is worth more than the Iraqi Dinar, the dollar will still be king inside of Iraq. Therefore, no Iraqi in their right mind is going to accept the value of the dinar that is worth half as much as the dollar while the USD can still be used within the borders of Iraq. They need to do away with the USD altogether (dedollarize) as the official trade mechanism if they want to RV at any amount, even if that amount is 1800 dinar to 1 USD or 2 dinar to 1 USD. 

Exactly...

common sense !

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5 hours ago, horsesoldier said:

Muhammad Sahib al-Darraji, member of the House of Representatives - 

 

Clearly, the question must be asked concerning this " enlightened " member of the House of Reps. and his proposals towards the Monetary Policy - Just how long has this Screw Head been Sniffing Glue ! ? ! ?

Smoking crack pipes clearly...

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add this as well, who knows it Iraq. It sounds like some effort and Hope for the people..

Editing Date: 6/30/2020 23:22 • 87 times read
Ayna News - Baghdad

, the deputy of the "Iraqis" coalition, Hassan Khalati, confirmed that the alliance is not a new generation, while he indicated that its door is open for anyone who wishes to join it.

Khallati said that "the announcement of the coalition (Iraqis) was not a time off. Rather, there were efforts made more than 6 weeks ago to develop a national parliamentary coalition based on respect and endeavor to strengthen state institutions and their structures, starting with the legislative institution of the House of Representatives and ending with all state institutions as well as achieving The legitimate aspirations of the Iraqi people by forming a parliamentary alliance that includes the political forces wishing to form this alliance and agree to its goals, as well as independent representatives whose views and ideas are in line with the alliance. "

"The basis and the starting point will be to build the state, strengthen the state apparatus, and strive to overcome the crises that the country suffers from," he added.

Khallati continued, "The coalition will seek at the parliamentary level to legislate laws that are stalled due to the current crisis and also because of incompatibility, as well as to seek to legislate everything that would strengthen state building and government agencies."

He pointed out that "the door of the alliance will be open to whoever desires from the political forces and deputies to join it," noting that "it was announced that it is a political alliance, but within the parliament it will be a parliamentary alliance that turns into a representative bloc with a presidency and an internal system."


"It is a breakthrough that came at the right time to achieve the legitimate requirements," Khallati concluded.
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Member of Parliamentary Finance proposes a road map for solving the financial crisis

 8 hours ago
44
 
1220183112925695612796-2.jpg

Member of Parliamentary Finance Committee MP Muhammad Saheb Al-Darraji presented a road map today, Wednesday, to solve the financial crisis.

Al Darraji said in a statement that he received a "progress" version of it, that "due to the economic and financial situation in Iraq reaching the bottleneck stage, there must be solutions applicable to the near and far ranges, and through some of the professional experiences gained in the areas of government executive and parliamentary legislative work, accompanied by experience Accumulated from work in the private sector and touching the economic and service situation of the Iraqis at various levels, I would like here to present a short-term road map to contribute to solving the financial crisis and protect the country's economy must be followed by medium and long-term measures to reform the Iraqi economy and find a clear economic doctrine for Iraq that changes the form of spending and resources The country's finance in proportion to the societal nature and global ruling conditions of energy prices and the diversity of means of production.

This plan is summarized as follows: -

 First: The general budget

1 - A simple and constructive budget must be submitted and approved for the remainder of the year 2020 that clarifies the ruling real revenues and expenses and what relates to these two items only and the ways of filling the resulting deficit and without touching on any other items.

2 - Building a budget for the year 2021 on a sectoral basis and on a fixed oil price for the operational budget and a mobile for the investment budget, directing the budget for salaries, purchasing the ration and medicines, sterilizing water and the educational process only and listing items that encourage dependence on investment and the private sector to address other sectors so that these provisions govern the budget law All other laws and restrict them in favor of financing the unfunded sectors.

3 - Providing the final accounts for the past years and validating them to know the deficiencies in financing certain sectors in exchange for wasting in other sectors in order to create an economic balance between the service and productive sectors.

 Second: - The cash block

Withdrawing the mass stored in the society and trying to invest it in an investment through the following: -

1 - Raising the interest rate for cash deposits in banks even if the monetary authority is forced to support banks.

2 - Establishing projects in which the state contributes a certain percentage, and the rest is offered for subscription, especially in projects of city centers ( dawn town ) and major industrial projects such as petrochemicals (Nebras).

3 - Offering some of the winning companies (or that could win by changing the management tactic) for subscription like air navigation company, airlines, cement, fertilizers, and others.

4- Selling oil coupons locally. At the prevailing price now and buying it a year later at the prevailing price then.

5 - Building confidence between the state and the citizen by committing to pay interest and profits.

 Third: - Oil licenses

1 - Negotiating to postpone the dues of oil companies or pay them in kind outside OPEC's share.

2 - Evaluating company spending and reducing it to a minimum.

3 - Re-negotiation in consensual ways with oil companies to improve contract terms for the state when the oil prices drop.

 Fourth: - Legislative procedures

1 - Revoking the Coalition Provisional Authority's decision to ban the export of raw materials and the export of some materials, such as gravel, sand, and others.

2- Requiring the government to start licensing rounds to invest some mineral resources, such as phosphates, and others.

3 - Preparing a new salary scale that takes into account the economic situation and achieves social justice and encourages the employee to leave the job with a set of privileges outside the framework of the job.

4- Prepare a special bill to reduce all allocations granted under previous laws by a certain percentage.

5 - Amending some transitional justice laws and laws that have concessions that are no longer needed.

 Fifth: - Governance and automation

1 - The Ministry of Finance issues the e-dinar for the purpose of collecting government revenues and fees and what distinguishes them from being non-negotiable in the market as cash so that we have reduced corruption in this aspect as well as the state's knowledge of the value of those imports quickly, provided that it is issued by a government bank and not through companies Eligibility.

2 - Encouraging and organizing electronic payment, obligating banks and institutions to electronic payment, and encouraging sales outlets in the private sector to use electronic payment devices without commissions and ensuring that their accounts are fed by the national exchange in the Central Bank daily.

3 - The necessity of automating the ports and customs and linking them to any process of transferring the dollar or opening bank credits for the purposes of importing and controlling the border outlets and preventing militias and gangs from controlling them.

 Sixth: - Monetary policy

A- The exchange rate

1 - Begin to gradually reduce the price of the Iraqi dinar to reach 1500 dinars against the dollar until the end of the year 2020 and review the economic situation.

2 - And then start another reduction up to 1,800 within 6 months.

3 - Then we study the possibility of deleting the zeros, so we will end with a fixed price of 2 Iraqi dinars per dollar.

B - Methods to address potential inflation and the effects of the devaluation of the Iraqi dinar, so that this procedure is accompanied by the following steps: -

1 - Increasing nominal salaries for grades five to nine and increasing the salaries of the social protection network by 12% to reduce the impact of potential inflation on the vulnerable classes.

2 - Amending the currency selling mechanism to maintain the hard currency inside the country and that the dollar and other foreign currencies are sold and traded directly in the currency markets or through the stock market in order to get a real price of the Iraqi dinar against the US dollar and that the guarantor of the prices is the value of the available reserve The Central Bank of Iraq has hard currency.

3- Government projects pricing in the investment budget in dollars and financing the exchange units budget for the investment budget in dollars.

4- Setting an import platform, stopping some imports, controlling customs outlets, supporting the tax system and exempting the local product from income tax for a period of two years.

5 - The state imports commercial foodstuffs into the market and injects it into the ration program in the event of high prices.

6 - Supporting fuel for public transport, factories and irrigation projects, and giving high relative importance to the food industries.

7 - Pumping a hard currency to the exchange markets to maintain the price level of the Iraqi dinar, which prevents price fluctuation due to possible speculation.

8 - Activating the role of economic security and entering the relevant government agencies to control the cash rhythm in the currency market and the food market.

 Seventh: State property

1 - Optimize unexploited government assets from real estate, buildings, vehicles, furniture, etc. by selling them or entering into investment partnerships.

2 - Sale of lands that were overlooked for those overruns at the same rate to give an excuse for recovery from those who do not pay (and vice versa it cannot be recovered and the outposts returned)

 Eighth: The private sector

1- Raise the credit limit of government banks to give loans.

2 - Activating the central bank loan initiative and easing guarantees for industrial, construction and agricultural projects, while controlling payments and linking them to completion rates and opening credits to move the private sector.

3- Finding ways through joint financing or external borrowing to finance government-funded projects and completing projects with high percentages.

4- Reducing the restrictions of letters of guarantee and their expenses for ongoing unpaid advances due.

5 - Displaying productive projects for the purpose of investing them by the implementing agencies in exchange for completing them and entering the service.

6 - Moving the housing fund and real estate bank loans to move the construction sector that withdraws unemployment as it is the largest employer sector.

7 - Increasing taxes on imported commercial products and reducing them from imported raw materials to encourage the national product.

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