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The Iraqi Economy ... The Predicament Of The Situation And The Problem Of The Solution !


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Iraq: Disclosure of a shocking number for the amount of money smuggled abroad and an expert proposes a "deal" to recover quickly

127947.jpg?watermark=4

 

Economie 20/20/2020 20:56 2013     


Baghdad today _ Baghdad  

 

The economic expert, Abdul Rahman Al-Mashhadani, revealed today, Monday, the volume of money smuggled abroad, which is divided between laundering and illegal operations estimated at at least $ 250 billion, while stressing that the process of recovering it is risky and requires an international effort. 

Abdul Rahman al-Mashhadani said, in a televised statement I followed (Baghdad Today), "The endeavor to amend the Financial Management Law is not useful, because it was modified at the end of last year to allow the government to work in the absence of a budget by disbursing funds in the base of 1/12, that is, the monthly disbursement of funds According to the nearest budget approved to proceed with investment projects for which amounts will be disbursed later.

Al-Mashhadani added, "Any new amendment will weaken the role of the government and the Ministry of Finance in passing its budgets in general because the government cannot operate without a budget, and also a parliament that will not be able to monitor achievement rates without adopting a plan or budget," noting that "failure to approve a state budget In 2014, he overshadowed the performance of the Ministry of Finance since that day. "

He continued: "A budget must be organized in actual disbursement from January 2020 until July, to which estimates are added to the total budget. According to my estimate, it should be in the range of 65 trillion dinars to cover operating expenses and even the deficit will coincide with the deficit rate specified in the Financial Management Law," noting that "oil prices Stable at about $ 40 a barrel, and it is assumed that its price in the budget will be set at $ 35, and here the gates of exchange will be clear until the end of the year.

And on the money smuggled outside Iraq, the economist said, "The money smuggled abroad is estimated between money laundering and illegal operations estimated at the limits of at least 250 billion dollars and may reach 350 billion and it is present in the Arab neighboring countries as well as many countries of the world."

And on the possibility of recovering the smuggled money, he stressed that "the recovery of those funds is risky and requires an international effort and cooperation with international organizations, as well as cooperation with international offices for research and investigation to find these funds and then return them, and the matter needs at least five years."

The economist pointed out that "the state of Morocco carried out an experiment in which the smugglers of money smuggled in to drop claims against them in exchange for returning half or one third of that money, and this matter is faster than research and investigation and assigning authorities to follow up because the matter may extend for years."

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July 21, 2020 
 

Economic troubles threaten the security of Iraq A A Chloe Corniche (Financial Times)

- Translation: Muhammad Amin 

 

The Iraqi Minister of Finance warned of "grave security consequences if the country's economy is not radically restructured," in which the Corona virus crisis resulted in huge damage to business and the collapse of oil prices to deplete state revenues. 

Ali Allawi, the new finance minister, who is a graduate of Harvard University and the Massachusetts Institute of Technology, pointed to inflated spending and a monthly salary bill of more than $ 5 billion for an inflated public sector employee that includes 300,000 actual or "fake" employees.

While austerity is "a message that is difficult to pass on to politicians," Allawi reveals a growing political awareness in Iraq that "if you overload a cow in Aleppo, you may die." All you can do is alert the disaster that awaits us if we continue along this path. ” 

Allawi expressed his firm opinion that "if the economy is not radically restructured within the framework of a consistent, well-executed medium-term program, the situation may lead to truly severe security consequences." 

Crude oil prices have fallen by more than half compared to last year, which was a devastating blow to the financial position of the second largest producer of crude oil in OPEC. According to the Oxford Institute for Energy Studies, the country's revenue from oil exports fell from $ 6.1 billion in January, to as low as $ 1.4 billion in April.

Restructuring 


While the collapse of world oil prices has harmed the Iraqi economy before, Allawi believes that Baghdad is no longer able to rely on oil prices to achieve recovery, and says that «there is now a growing realization that we are moving to an environment with relatively low oil prices, and we are supposed to find an alternative to return Structuring our public finances to take into account this new normal. ”

The 73-year-old minister is a member of a transitional government to lead Iraq toward new elections after the mass protests against the institution overthrew the previous government. After three decades of wars and turmoil, Allawi is not alone in fearing that the free economic downfall will destabilize Iraq again. 

"Unemployment is increasing by a large percentage, and this may increase extremism," said a Western diplomat in Baghdad, at a time when extremist groups are seeking to attract unemployed Iraqis.

Emphasizing the economic fragility of Iraq, the country's poverty rate is expected to rise to 31.7 percent this year, from 20 percent in 2018, as the Corona virus pushed 4.5 million Iraqis below the poverty line, according to a new joint assessment by the government and the United Nations. The World Bank and Oxford University.

Low oil prices leave the government with little room to maneuver. And if oil prices remain below $ 30, Iraq will turn from a financial surplus into a deficit equal to more than a quarter of its gross domestic product, according to the World Bank. 

Analysts said the government can take advantage of $ 68 billion in foreign reserves to cover dollar bills, such as imports and debt service, and is expected to borrow $ 18 billion locally and abroad to cover government wages for the next few months.

Demonstrations against corruption 

It is also resorting to multiple lenders, where Allawi revealed that Iraq "has been holding regular and intense discussions with the International Monetary Fund for some time. Baghdad may apply for some budget support. ” 

Volume 0%   The inflated wage bill is part of Iraq's recent violent history, where Allawi notes that 40 to 45 percent of public sector employees are members of the vast Iraqi security forces.

But political parties in Iraq after 2003 offered government jobs in exchange for vote and loyalty and resisted efforts to cut public spending fueled by oil. According to the Oxford Institute for Energy Studies, many Iraqis have come to consider that the steadfast government job is their right, while the Iraqi local economy depends on the salaries of the country, which makes up about a quarter of Iraq's gross domestic product.

The previous government, headed by Adel Abdel-Mahdi, had promised hundreds of thousands of additional government jobs to calm demonstrators against corruption and economic inequality.

Attempts to reform the government by Prime Minister Haider al-Abadi in 2016 were met with protests by Muqtada al-Sadr's supporters. The new government has already had to scrap the planned taxes on pensions and some state employees.

Yasar al-Maliki, director of the Iraqi Energy Institute, said that Allawi is considered "one of the best economic minds in Iraq." He held the same position in 2005 and 2006, and still faces the same problems that existed 17 years ago. 

He added that although Allawi started cleaning up the public payroll, "we cannot expect him to do everything in one year."

للمزيد:LINK

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Re-authorizing companies (Kantar, Athl, Lamees, and Tourist) to mediate the buying and selling of foreign currencies

image.jpeg.4edb247a281a7e2a5bc918bc2fb93f54.jpeg

 

21st July, 2020

To / The Ministry of Trade / Companies Registration Department ( Re-authorizing Qantar,
Al-Athal, Lamees and Al-Tourist companies ) to mediate the buying and selling of foreign
currencies .. To view click here

To the Ministry The Trade Department Registration of companies KOS (1990)  Pursuant
to the secrets of the court wiped No. (1) of the year for it in its session held on Eid held on
۲۰۲۰/۷۲ Approval of the re-leave the company Kantar to mediate the sale and purchase
of currencies Please take the necessary It is appreciated that the matter relates with
appreciation. 

To the Ministry of Commerce  Generation of companies Re-authorization of KOY based on
the decision referred by Administration No. (1) Fitna with his session numbered by
number YANG (010)  decides to approve the return of the license to Al-Athl company to
mediate the buying and selling of foreign currencies Please take the necessary and it is
estimated that it depends on your department with the estimate value is valid for the
general manager NI and R.

Based on Board Resolution No. (۱۱۱) of the year ۲۰۲۰ in its session numbered (۷) held
on ۲۰/۷ ۲. With appreciation 

To the Department of Commerce, the important generation of companies, according to
the decision of the two administrative boards No. (لسنة) for a year in its session
numbered) on the date of ۱۳ Saleh Ali General Manager ۲۰۲۰/۲۰۲۰/۱
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Withdraw the license of Al-Durr Company to mediate buying and selling foreign currencies
 

image.jpeg.bbb69b5d9d716952bebd0149971d3314.jpeg

 

 

21st July, 2020

 

To / Ministry of Trade / Companies Registration Department ( Withdrawal of Leave )
Number: 8894/5/9
Date: 7/20/2020
 
According to the decision of the Board of Directors of this bank No. (109) for the year 2020.
In view of the violation by Al Durr Brokerage Firm of buying and selling foreign currencies,
the provisions of the regulations governing the work of brokerage firms buying and selling
foreign currencies No. (1) of 2018.

 
It was decided to withdraw the company’s license, confiscate the insurance deposited with
this bank amounting to (50,000,000) dinars (fifty million dinars), cancel the establishment
certificate granted to it by you, and provide us with a letter to write off the company’s name
from your records and the certified liquidation record and letter.
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Amending the controls of the Sharia Advisory Committee

L72-6sEWZqe5fUMnn_HKutJwvsEjXMaDC-iRTx5H

 

21st July, 2020



Amendment to paragraph ( 2 ) of the controls of the Sharia Consultative Committee 
announced on 27/2/2020 related to the request to appoint the High Sharia Consultative
Committee in the Central Bank of Iraq

» For the revised Shari’a Advisory Committee controls ... click here

Controls for Appointment of the Sharia Consultative Committee First Career.  ۲. He must
not be less than 40 years old 3- Have a PhD in Islamic Fiqh, Islamic Finance, Islamic
Economics, or Islamic Finance. To have at least (5) years of experience in the field of issuing
fatwas and legal rulings. To have at least (۱۰) years of experience in teaching and scientific
research in Islamic jurisprudence, Islamic finance, Islamic economics or Islamic finance. To
have extensive knowledge of the international Islamic standards issued by the Local and
Auditing Organization for Islamic Financial Institutions (AAOIFI) and standards issued by the
Services Council
 
Islamic Finance (IFSA) No. He published no less than (5) research papers in solid scientific
journals in the field of Islamic jurisprudence, Islamic finance, Islamic economics or Islamic
finance. 
Independence conditions 1- He should not be a member of a board of directors or
practicing 
executive business in any Islamic bank or financial institution inside Iraq during
the previous three 
years ۲ A working branch in Iraq and any other Islamic financial
institutions in which he operates 
in the event that he wishes to run for membership in the
Supreme Sharia Advisory Committee in 
this bank.  3- He does not have a margin holding
percentage in any local bank or any foreign bank 
that has a branch operating in Iraq.
4. That he does not directly or indirectly own more than 5% 
of the shares of any company
affiliated with a local bank or for a foreign exchange that owns 
a working branch inside Iraq. 
It should not be related to any of the members of the boards 
of directors or higher
departments in this bank and the banks operating in Iraq and Islamic financial 
institutions
up to the third degree. That he is not a partner or employee of any of the external 
auditing
companies during the previous three years.
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1 hour ago, DinarThug said:

Iranian Official: Close Agreement Reached On Foreign Currency Between Iran And Iraq

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21st July, 2020

 

Director of International Affairs of the Iranian Central Bank, Hamid Kanbari, announced that it is close to reaching an agreement regarding foreign currency between Iran and Iraq.

The official, who accompanied Iranian Foreign Minister Mohammad Javad Zarif on his visit to Baghdad last Sunday with the aim of conducting banking negotiations with the Iraqi side, said that the discussions were useful and constructive between the two sides, and the final stage of the Iraqi Prime Minister and his accompanying delegation will arrive in Tehran today, Tuesday.

He added that in the event that it is achieved, it is expected that a significant foreign exchange will flow to the (local) market, amounting to several billion, which will contribute to covering a large part of the demand for foreign currency.

The Central Bank of Iran and its Iraqi counterpart signed a memorandum of cooperation related to banking and financial ties last year, between Qanbari, that the negotiations of the day before yesterday come as an extension of the memorandum concluded, and that the visit of the Iranian Central Bank Governor Abdel Nasser Hemati to Iraq last month comes in the same framework.

 

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

Iran and Iraq are on the threshold of an agreement regarding foreign currency    LINK

 

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Parliamentary Finance warns: Dealing with Iranian banks will expose Iraq to an international blockade

1595325862_3336.jpg
 

21st July, 2020

Member of Parliamentary Finance Committee, Ahmed Hama Rashid, warned against dealing with Iranian banks in the process of paying the debts owed by Iraq to Iran, stressing that the issue may expose Iraq to the blockade

Rashid said in a statement followed by "Gilgamesh Press" that "Iraq tried to pay debts to an Iranian office, but to no avail, given that Iranian banks are besieged and cannot be dealt with

He pointed out that "Iraq tried through a group of central banks, including the Central Bank of China, but to no avail, because of the ban in transactions. He stressed, "The visit of Prime Minister Mustafa Al-Kazemi to Iran, may consider the method of payment, and there is no solution other than banking dealings in payment," noting that "the issue is complicated, and Iraq may be besieged if it deals with Iranian banks

He explained, "The debt amounts of $ 3 billion may be due to energy, keros debt, gas and electric power, and the ministries of Electricity and Oil can clarify the truth of the amounts if they are realistic or exaggerated. He added, "Iraq currently does not have funds to pay debts, and it needs some flexibility in the negotiations between Iraq and Iran

Earlier in the day, the head of the Iran-Iraq Joint Chamber of Commerce, Yahya Al-Ishaq, confirmed that Iraq’s energy and electricity debts to Iran would be addressed when Prime Minister Mustafa Al-Kazemi visited Tehran

Prime Minister Mustafa Al-Kazemi and his accompanying delegation arrived earlier in the day to the Iranian capital, Tehran, for a two-day official visit

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it will provide the bank with continuous cash liquidity, most people benefit from its salaries at a rate of 1/30 and even if someone spends his salary in less than that, the money is still in the bank because the circle is also closed As we explained, this measure can provide a monthly liquidity of 53 trillion Iraqi dinars, equivalent to 47 billion US dollars, which is a very large monetary block

 

jyst imagine what a rate change will do get all that cash from homes to banks! The above is merely talking about wages,welfare etc. if 70% cash is kept at home we could be talking over 100 trillion dinar if well over 80 billion usd

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15 hours ago, DinarThug said:

the volume of money smuggled abroad, which is divided between laundering and illegal operations estimated at at least $ 250 billion, while stressing that the process of recovering it is risky and requires an international effort. 

Hmmmm lots of money 

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19 hours ago, DinarThug said:

Iraq: Disclosure of a shocking number for the amount of money smuggled abroad and an expert proposes a "deal" to recover quickly

127947.jpg?watermark=4

 

Economie 20/20/2020 20:56 2013     


Baghdad today _ Baghdad  

 

The economic expert, Abdul Rahman Al-Mashhadani, revealed today, Monday, the volume of money smuggled abroad, which is divided between laundering and illegal operations estimated at at least $ 250 billion, while stressing that the process of recovering it is risky and requires an international effort. 

Abdul Rahman al-Mashhadani said, in a televised statement I followed (Baghdad Today), "The endeavor to amend the Financial Management Law is not useful, because it was modified at the end of last year to allow the government to work in the absence of a budget by disbursing funds in the base of 1/12, that is, the monthly disbursement of funds According to the nearest budget approved to proceed with investment projects for which amounts will be disbursed later.

Al-Mashhadani added, "Any new amendment will weaken the role of the government and the Ministry of Finance in passing its budgets in general because the government cannot operate without a budget, and also a parliament that will not be able to monitor achievement rates without adopting a plan or budget," noting that "failure to approve a state budget In 2014, he overshadowed the performance of the Ministry of Finance since that day. "

He continued: "A budget must be organized in actual disbursement from January 2020 until July, to which estimates are added to the total budget. According to my estimate, it should be in the range of 65 trillion dinars to cover operating expenses and even the deficit will coincide with the deficit rate specified in the Financial Management Law," noting that "oil prices Stable at about $ 40 a barrel, and it is assumed that its price in the budget will be set at $ 35, and here the gates of exchange will be clear until the end of the year.

And on the money smuggled outside Iraq, the economist said, "The money smuggled abroad is estimated between money laundering and illegal operations estimated at the limits of at least 250 billion dollars and may reach 350 billion and it is present in the Arab neighboring countries as well as many countries of the world."

And on the possibility of recovering the smuggled money, he stressed that "the recovery of those funds is risky and requires an international effort and cooperation with international organizations, as well as cooperation with international offices for research and investigation to find these funds and then return them, and the matter needs at least five years."

The economist pointed out that "the state of Morocco carried out an experiment in which the smugglers of money smuggled in to drop claims against them in exchange for returning half or one third of that money, and this matter is faster than research and investigation and assigning authorities to follow up because the matter may extend for years."

LINKLINK

 

A smugglers' TAX at a 50% or 33% rate! 

Hahahahaha.

Why not, if you have the evidence of malfeasance, pay the host country a bounty of 25% for seizing and returning YOUR money? And, work on developing your diplomatic solutions to return the thieves, too!?

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23 hours ago, DinarThug said:

Iraq: Disclosure of a shocking number for the amount of money smuggled abroad and an expert proposes a "deal" to recover quickly

127947.jpg?watermark=4

 

Economie 20/20/2020 20:56 2013     


Baghdad today _ Baghdad  

 

The economic expert, Abdul Rahman Al-Mashhadani, revealed today, Monday, the volume of money smuggled abroad, which is divided between laundering and illegal operations estimated at at least $ 250 billion, while stressing that the process of recovering it is risky and requires an international effort. 

Abdul Rahman al-Mashhadani said, in a televised statement I followed (Baghdad Today), "The endeavor to amend the Financial Management Law is not useful, because it was modified at the end of last year to allow the government to work in the absence of a budget by disbursing funds in the base of 1/12, that is, the monthly disbursement of funds According to the nearest budget approved to proceed with investment projects for which amounts will be disbursed later.

Al-Mashhadani added, "Any new amendment will weaken the role of the government and the Ministry of Finance in passing its budgets in general because the government cannot operate without a budget, and also a parliament that will not be able to monitor achievement rates without adopting a plan or budget," noting that "failure to approve a state budget In 2014, he overshadowed the performance of the Ministry of Finance since that day. "

He continued: "A budget must be organized in actual disbursement from January 2020 until July, to which estimates are added to the total budget. According to my estimate, it should be in the range of 65 trillion dinars to cover operating expenses and even the deficit will coincide with the deficit rate specified in the Financial Management Law," noting that "oil prices Stable at about $ 40 a barrel, and it is assumed that its price in the budget will be set at $ 35, and here the gates of exchange will be clear until the end of the year.

And on the money smuggled outside Iraq, the economist said, "The money smuggled abroad is estimated between money laundering and illegal operations estimated at the limits of at least 250 billion dollars and may reach 350 billion and it is present in the Arab neighboring countries as well as many countries of the world."

And on the possibility of recovering the smuggled money, he stressed that "the recovery of those funds is risky and requires an international effort and cooperation with international organizations, as well as cooperation with international offices for research and investigation to find these funds and then return them, and the matter needs at least five years."

The economist pointed out that "the state of Morocco carried out an experiment in which the smugglers of money smuggled in to drop claims against them in exchange for returning half or one third of that money, and this matter is faster than research and investigation and assigning authorities to follow up because the matter may extend for years."

LINKLINK

 

Member of Parliamentary Integrity: Entities who stand against the recovery of smuggled money .. They were taken out in two stages

 

image.jpeg.f034cf4fb0f6e3f2e04415b25bbf949b.jpeg
 

Policy 2020/07/21 20:19 153      

Baghdad today - Baghdad 

 

Member of the Parliamentary Integrity Committee, MP Jamal Muhammad, confirmed today, Tuesday, that the smuggling of Iraqi funds took place in two phases, indicating that there are political parties that stand against their recovery.

Mohammed told (Baghdad Today), that "there is no specific figure that accurately reveals the amount of Iraqi money that was smuggled abroad, but it is clear to us that it was smuggled through two phases, the first in the time of the previous regime through the oil-for-food program, and the second phase started after 2003 through the corrupt. "

He pointed out that "there are a lot of files that contain numbers and documents related to the large smuggled money, but so far there is no serious government move towards it despite the passage of many years of it."

Muhammad added, "The parliament approved the law to recover money from Iraq, and made an amendment to it, but so far, none of the smuggled money has been recovered."

He pointed out that "the file of smuggled money carries a lot of secrets ... There are already influential people in addition to neighboring countries that have prevented governments from opening this important file in earnest for many years." 

Earlier, the economist, Abd al-Rahman al-Mashhadani, revealed the volume of money smuggled abroad, which is divided between laundering and illegal operations estimated at at least $ 250 billion, while stressing that the process of recovering it is risky and requires an international effort. 

Abdul Rahman Al-Mashhadani said, "Money smuggled abroad is estimated between money laundering and illegal operations,

estimated at the limits of at least $ 250 billion, and may reach $ 350 billion,

which is found in the Arab neighborhood and also many countries of the world." 

And on the possibility of recovering the smuggled money, he stressed that "the recovery of those funds is risky and requires an international effort and cooperation with international organizations, as well as cooperation with international offices for research and investigation to find these funds and then return them, and the matter needs at least five years." 

The economist pointed out that "the state of Morocco carried out an experiment in which the smugglers of money smuggled in to drop claims against them in exchange for returning half or one third of that money, and this matter is faster than research and investigation and assigning authorities to follow up because the matter may extend for years."

link

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