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Justifications For Changing The "Iraqi Dinar" Exchange Rate


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21 hours ago, DinarThug said:

Documents ... The axes of the white paper that the Council of Ministers will discuss tomorrow

Documents ... The axes of the white paper that the Council of Ministers will discuss tomorrow
 
 
10/12/2020 15:42:38

 

 

 Translation of below documents .....



White Paper The proposed period for implementation is 3 years (2021 22.) 2023  

Axis I / Achieving sustainable financial stability

 

A- Maximizing revenues

 

B- Declining expenditures Reforms in the Ministry of Finance and Financial Management Systems

 

Axis Two / Achieving total economic reforms

 

A- Rehabilitation of the financial and banking sector

 

B- Banks - Insurance - Stock Market 

 

C- Sectors driving the economy Agriculture - Oil and Gas to upgrade them w- The private sector and activate the private sector fund and an initiative of the Central Bank Simplifying procedures Paying dues for contractors and providing job opportunities in the private sector

 

D - Restructuring self-financed public companies  


The restructuring of public companies financed by Dania, the losing companies are liquidated and the other companies are re-assisted and sold to some companies and are based on small projects in the area of relocation of the unemployed and the enterprises are obligated to develop human development and from the national strategy of education and training


Axis Three

A- Improving the Basic Infrastructure

B- Electric Power (Production, Transmission and Distribution, Collection, Alternative Energy)

C- Mobile Phone Communications, Network Connections

D- Transport Sector, Ports, Airports, Modern Roads of Trade)

C- Areas Duty Free and Industrial Cities

 

IV / Providing basic services A- Providing safe drinking water - Redrawing the social protection system C- The retirement system (a unified law that meets the private and public sector 0 W- Implementing the school building plan

V | Development of governance and the legal environment a- Review the implementation and amendment of the instructions for the implementation of government contracts, in terms of governance and public administration

 

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Fiscal Committee: The White Reform Paper Arrives in Parliament

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13th October, 2020


The Parliamentary Finance Committee announced, on Tuesday, the arrival of the government's White Paper on Reform to Parliament.

The official Al-Sabah newspaper quoted the Finance Committee as saying that "the government's white paper for reform has reached the parliament." 

 

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The House of Representatives resumes its meeting tomorrow, Wednesday
 

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13:38 - 10/13/2020

The Presidency of the Council of Representatives announced, on Tuesday, the resumption of the 11th regular session of the current legislative chapter, tomorrow, Wednesday, after it was scheduled to resume today.

"The meeting will resume tomorrow, Wednesday, 10-14, at 12 noon," the council’s media department said, in a brief statement.

The Presidency of Parliament had decided, on Monday, to keep the session open and to resume it today, Tuesday, in light of negotiations conducted by the political blocs to reach solutions regarding the electoral districts. 
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CNN. Broadcasting With Justification From The Experts !     LINK Justifications For Changing The "Iraqi Dinar" Exchange Rate     9th October 2020 Iraq is

You don’t need to justified anything, just increase the dinar exchange rate and let it be subject to the forces of supply and demand.   Go open market economy  Go free dinar Go RV

The delay in salaries will be "repeated" .. The likelihood of escalating in economic circles and a proposal that will move Iraq to an economic "competitive" position in the world! 2020

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Minister of Finance: The White Paper is a reform program for financial and economic affairs

 

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13th October, 2020


Minister of Finance, Ali Abdul Amir Allawi, warned, on Tuesday, that Iraq is facing dangerous repercussions, while he confirmed that the White Paper will be a reform road map.

"The White Paper is a reform program for the financial and economic affairs in Iraq, and it will turn into legislation with the aim of reforming the economic and financial situation,"Allawi said in a joint press conference with the Minister of Planning and government spokesman Ahmed Mulla Talal, held in Baghdad.

He added, "The situation of Iraq will be much better economically and the situation of the individual will improve if we succeed in implementing the white paper, as well as placing the liberated cities at the forefront of their concerns," noting that "one of the main axes in the white paper is to reform the situation in the provinces."

Allawi continued, "We face dangerous repercussions and the white paper is a reform road map," noting that"the border crossings are linked to the import movement and will not be as important as oil," noting that "Iraq imports materials worth $ 60 billion annually from abroad." 

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Parliamentary Finance begins with an audit of the "white paper"


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13th October, 2020


Deputy Chairman of the Finance Committee, Muthanna Al-Samarrai, announced, on Tuesday, that the "white paper" for economic reform handed over by Finance Minister Ali Abdul-Amir Allawi to Parliament has begun.

Al-Samarrai said in a statement that Mawazine News received a copy of: “We received the economic reform paper that was termed the“ White Paper ”from the Minister of Finance, Ali Abdul-Amir Allawi, to present it to the Finance Committee, audit it, make observations about it, and review it with the Ministries of Finance and Planning in preparation for presenting it to Parliament.  He added, "In it the general frameworks of the paper were discussed."

For his part, the Minister of Finance expressed, according to the statement, his "hope that the reform paper presented by the government will receive the support of the Finance Committee," stressing that "the government is ready to discuss its details and listen to any real observations put forward by the committee and the House of Representatives and contribute to the development and maturation of the paper." 

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The decisions of the Council of Ministers

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13th October, 2020


The decisions of the Council of Ministers during today's session, which was held under the chairmanship of Prime Minister Mustafa Al-Kazemi.

The media office of the Prime Minister said in a statement that Mawazine News received a copy of, that "the Cabinet held its regular session headed by Prime Minister Mustafa Al-Kazemi, during which a number of issues and topics included in the agenda were discussed."

The statement added, "The Minister of Health and Environment, at the beginning of the session, presented a detailed report on the latest developments in the Corona pandemic in Iraq, and the government's efforts to contain the virus, reduce the rates of injuries and deaths throughout the country, and the efforts of the Ministry of Health to provide the necessary treatments and health supplies for all Hospitals, as well as continuing awareness campaigns on taking the preventive measures that must be adhered to.

He continued: "During the session, the reform white paper was discussed, where the Minister of Finance presented the final report of the emergency cell for financial reform in Iraq, which includes immediate plans to get out of the current financial crisis, and an explanation of the contents of the white paper, and its ability to achieve the advancement of the country's economy, which suffers from various problems.
And it faces serious challenges, and the white paper is enough to address many of the defects that have accumulated over many years."

After discussing what was included in the agenda and what the discussions concluded about it, the Council issued the following decisions, according to the statement:

 

First / Approval of the White Paper for Economic and Financial Reform, taking into consideration the opinion of the Legal Department in the General Secretariat of the Council of Ministers, and the comments of the Council of Ministers.

 

Second / Extending the exception granted to the Ministry of Health, according to the decision of the Supreme Committee for National Health and Safety (9 of 2020), and the decision of the Council of Ministers (42 of 2020), regarding the Ministry of Health exemption from the instructions for implementing government contracts (2 of 2014) and its attached controls, and instructions for implementation The federal general budget upon its issuance, and in order to eliminate the Corona pandemic, to ensure the provision of medicines, supplies, and medical and laboratory devices without delay.

 

Third / Approval of the recommendation of the committee formed according to the Diwani order (34 of 2020) and the Diwani order (247 of 2020), which include:
- Authorizing the Ministry of Transport to negotiate the suspended Baghdad train project with a consortium of (Alastom-Hyundai) companies, and at the cost and period that will be determined based on the outputs of the report that will be submitted by the consultant, who will evaluate the proposal submitted by the two companies' consortium, and what will be reached through negotiations between the two sides, The issue was later presented to the Council of Ministers.


 Fourth / Approval of the following:

1 - All creditor ministries and government agencies to provide the two ministries (trade and agriculture) with lists with a CD containing the debts owed to them by farmers, to set off the peasants’ dues and those debts and transfer them from the ministries of commerce and agriculture to the creditors.

2 - All ministries and government agencies not to fulfill the principal debts owed by farmers, and to cancel the delay interest from them, for those who have debts owed by government agencies equal to or greater than the amounts, and are required to pay them in light of the payment of their dues from government institutions.
 

3- Peasants marketers of strategic crops (wheat, barley, rice, corn) open accounts for them at the Agricultural Bank.
 

4- The Ministry of Commerce and Agriculture released the amounts owed to farmers to their accounts at the Agricultural Bank.
 

5- The Ministry of Agriculture supplies farmers and farmers with seeds and fertilizers, provided that the Ministry of Trade pays its sums to the aforementioned ministry.”

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The third announcement circulated by the Central Bank of Iraq to all Iraqi banks around the Arab Week for Financial Inclusion
 

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12th October, 2020

 
The third announcement circulated by the Central Bank of Iraq to all Iraqi banks around the Arab Week for Financial Inclusion.
 

Progress in financial inclusiveness indicators accelerated using electronic payment tools inside Iraq as it facilitates the electronic transfer of funds, which saves time and effort for everyone, and reduces the exchange of banknotes that are considered a transmission of infectious diseases and viruses.. and The Central Bank of Iraq has adopted an electronic payment strategy by cooperating with the public and private sectors to improve financial inclusiveness, which is one of the indicators of growth of the country's economy through improving and accelerating financial and economic services.

 

The year 2020 carried out a progressive model in the region to meet the needs of bankers by developing the Iraqi monetary policy infrastructure, led by the Central Bank of Iraq.

 
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It looks like Basel 3  and it's stingent requirments ,are being addressed by iraq . Basically, Basel 3 makes it impossible for a country to squelch on it's debt . It requires that a country has enough assets to cover debts by a long shot .

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Allawi: We are facing dangerous repercussions, and the White Paper is a road map ... and a new method for automation is announced


Allawi: We are facing dangerous repercussions, and the White Paper is a road map ... and a new method for automation is announced
 
 
10/13/2020 17:26:34
 
 
The Minister of Finance, Ali Abdul Amir Allawi, confirmed, on Tuesday, facing dangerous economic repercussions, and the White Paper is a road map, while he announced a new way to implement the automation system at border crossings.

Allawi said in a press conference, "The White Paper is a reform program for financial and economic affairs in Iraq." He pointed out that "the main purpose of the white paper is to transfer the current economic compass axis to a better future situation that keeps pace with developments in the world."
Allawi said that "the white paper is directed at the economic and financial side, and one of its main axes is the reform of the situation in the provinces." 


He continued, "the border outlets are linked to the import movement and will not be as important as oil," noting that "Iraq's import is estimated at 60 billion dollars a year."

Allawi pointed out that "Iraq has international and regional obligations related to trade agreements, and controlling ports is important and we have started in a serious way to implement the automation system." He explained that "the white paper will be a road map for subsequent budgets," adding that "oil revenues are insufficient to cover salaries and retirement requirements, but we will work to diversify revenues."

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The government sets a time limit for implementing the White Paper

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13th October, 2020


Ahmed Mulla Talal, spokesman for the Prime Minister, Mustafa Al-Kazemi, confirmed, on Tuesday, that the time limit for implementing what was included in the "white paper" extends from three to five years.

Mulla Talal said, in a joint press conference with the Minister of Finance and Planning, held in Baghdad, that "intensive meetings were held with the Minister of Finance, aiming to come up with the white paper for economic reform," indicating that "the time limit for implementing what was included in the white paper extends from three to five." Years".

He added, "The white paper is considered a developmental policy for the wrong policies during the past decades, and the duty of the current government is to prepare for elections and establish a solid economic policy." And, "the success of the white paper will spare Iraq any repercussions such as lower oil prices and prevent a recurrence of the salary crisis."

He stressed, "The Council of Ministers today took an important decision regarding farmers' benefits, due to the financial distress as a result of the financial deficit and 30% of their entitlements were handed over and the government took a decision to compensate them in kind in order to start the agricultural season and the Cabinet decided to provide farmers with seeds and fertilizers, provided that their sums be paid from the debtor Ministry of Trade." To cultivate with money.'' 

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Emergency Cell for Financial Reform * Final report of the emergency cell for financial reform

10/13/2020


 This white paper includes the final report of the emergency cell for financial reform, which was formed according to Cabinet Resolution No. 12 of May 12, 2020, with the aim of managing the financial situation in light of the current financial crisis, and developing the necessary solutions to achieve financial reform and improve the performance of financial institutions. The cell was deluded with the development of the economic reform program stipulated in the Domestic and Foreign Borrowing Law No. 5 of 2020 with the aim of restructuring the Iraqi economy and facing the upcoming challenges.

 The Prime Minister chaired the emergency competition and its meetings were moderated by the Minister of Finance, and included representatives of the economic ministries and major state institutions concerned with the issue, including the Ministry of Finance and the Central Bank of Iraq. The cell held more than 20 meetings between May 2020 and August 2020, and received detailed statements and reports from all concerned authorities in the country as well as from representatives of the private sector. The cell has finished preparing its report, known as the “White Paper,” referring to the approach followed in it, whereby the government submits its recommendations on the main issues with the aim of crystallizing a common basis that can be agreed upon and approved, followed by the presentation of the necessary legislation and implementation procedures accordingly.

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On 10/12/2020 at 10:27 AM, DinarThug said:

Iraq proposes to form a joint committee to settle financial issues with Iran

Iraq proposes to form a joint committee to settle financial issues with Iran

 

12th October, 2020


Central Bank Governor Mustafa Ghaleb Makheif proposed, on Monday, the formation of a joint committee with Iran to settle financial issues between the two countries, while indicating that he would use Tehran's experience in financing and banking.

"Fars" news agency quoted Makhaif as saying, during his meeting with his Iranian counterpart, Abdel Nasser Hemmati, who arrived in Baghdad this morning, that "Iraqi officials affirm that banking issues between the two countries will be resolved and that the problems will soon be resolved in light of the approved mechanisms," indicating that "we are trying Continuing banking cooperation with the Islamic Republic of Iran, and we will use Tehran's experience in financing and banking. "


“All our efforts are to continue cooperation between the two countries, and the existing problems in the field of financial and monetary claims by Iran will be solved,” Mukhaif added, noting that “there are some mechanisms that can be used to help enhance banking and monetary cooperation between the two countries and solve the existing problems.” "We suggested forming a joint committee in the presence of banking and financial officials from the two countries to find the necessary solution to settle financial issues between Iran and Iraq," he said.

For his part, the governor of the Central Bank of Iran said, "I hope that the banking and financial problems between the two countries will be resolved in light of the determination and will of the Iraqi authorities."

Hemmati considered relations between Iraq and Iran "very important and effective," stressing that his country "attaches great importance to developing cooperation with Baghdad."

The governor of the Central Bank of Iran arrived in Baghdad this morning, heading a delegation to meet and consult with Iraqi officials, including Prime Minister Mustafa Al-Kazemi.

 

With 4 different means ... How does Iraq pay Iran’s money amid US sanctions?


2020-10-13
 
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Yes Iraq: Follow up

 

Iran is moving to obtain its money in hard currency from Iraq, which represents the value of its dues from selling gas and electric power to Iraq, while US sanctions prevent money from dealing with Iran and paying it in the league currency, the dollar.

Amid a visit by the Governor of the Central Bank of Iran to Iraq, and his request to pay Iran's dues, questions arise about how Iraq will pay the Iranian money with the presence of US sanctions.

A report published by the American Al-Hurra website reported that "the size of Iraq's debts to Iran amount to about four billion dollars," according to the source, who said, "These debts resulted from Iraq's purchase of Iranian gas and other oil derivatives, as well as the import of electric power."

And while Iranian media reported that the two parties had reached an "agreement on releasing Iran's financial assets so that it could buy basic goods in the country."

These means did not indicate what the "mechanism" agreed upon, while the Central Bank of Iraq statement did not indicate any agreement.

The report quoted a source as saying that “the Iranian side hoped that the changes in the Iraqi government and the appointment of a new governor for the Iraqi Central Bank would lead to facilitation in the payment of funds to Iran,” noting that “the Iraqi side informed the Iranians that it would adhere to the old mechanisms for debt repayment, due to the sanctions imposed by the states. United over Iran ”.

 

How does Iraq pay Iran’s money?

The old mechanisms include deducting customs dues on Iranian goods, and fees for services such as aircraft services and visas from Iranian debt, as well as allowing Iran to purchase goods in Iraqi dinars from the local Iraqi market, according to the source, who also said that “Iraq paid Hajj fees to Iranian pilgrims in one year and deducted The amount of the total debt owed by him to Iran.

And Iraq tried in the past to pay sums to Iran through China, according to the source, who said that "the money returned to Iraq after the Chinese Central Bank was unable to deliver it to Iran," without giving further details.

 

Iraq is using Iranian gas to run its power plants, to alleviate its energy crisis.

The head of the Future Iraq Foundation for Economic Studies, Manar Al-Obeidi, said that it is not possible for Iraq to conclude agreements of this kind with Iran without taking a "green light" from the United States.

While the exemption from US sanctions, granted to Iraq, allows it to continue buying gas and electricity from Iran, it is not allowed for Iraq to pay dues for these materials in US dollars or euros.

 

Iraq can pay the debts in Iraqi dinars, which does not benefit Iran, or exchange them for goods and fee exemptions. However, the current mechanism only allows Iran to collect part of the debt.

"If Iraq takes a unilateral step without consulting the American side, this is a very dangerous matter that could destabilize the Iraqi economy with a set of sanctions," Al-Obaidi said.

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Central Bank: a decline in the accumulated quantities of foreign currency


Wednesday 14th October 2020 - 08:14

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Baghdad - conscious

 

The Governor of the Central Bank of Iraq, Mustafa Ghaleb Makhaif, suggested that foreign reserves in the bank would decline due to the increase in import financing and the decline in dollar revenues from the Ministry of Finance.
 
"The decline in the global price of oil and the reduction in production in Iraq, based on the OPEC agreement, led to a decrease in crude oil revenues and thus the dollar amounts that were the Ministry of Finance," he told Al-Sabah. It sells it to the Central Bank of Iraq in exchange for the Iraqi dinar, which it uses to finance its expenditures locally. " 
 
The governor added, "This led to a decline in the accumulated quantities of foreign currency at the central bank, in addition to the process of discounting the securities issued by the Ministry of Finance, for the purpose of bridging the deficit witnessed by the government in financing its spending, especially the current spending by the Central Bank of Iraq for the benefit of government banks."
 
He noted, “Most of the current spending will turn into a consumer demand that ultimately represents a demand for the US dollar, and with the central bank meeting this demand to finance imports, foreign reserves are expected to witness a decline in addition to the decline resulting from the decrease in oil revenues if the current data do not change. ".

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4 hours ago, DinarThug said:

Central Bank: a decline in the accumulated quantities of foreign currency


Wednesday 14th October 2020 - 08:14

608ce6ec62b99475f594ca629255b2d9.jpg

Baghdad - conscious

 

The Governor of the Central Bank of Iraq, Mustafa Ghaleb Makhaif, suggested that foreign reserves in the bank would decline due to the increase in import financing and the decline in dollar revenues from the Ministry of Finance.
 
"The decline in the global price of oil and the reduction in production in Iraq, based on the OPEC agreement, led to a decrease in crude oil revenues and thus the dollar amounts that were the Ministry of Finance," he told Al-Sabah. It sells it to the Central Bank of Iraq in exchange for the Iraqi dinar, which it uses to finance its expenditures locally. " 
 
The governor added, "This led to a decline in the accumulated quantities of foreign currency at the central bank, in addition to the process of discounting the securities issued by the Ministry of Finance, for the purpose of bridging the deficit witnessed by the government in financing its spending, especially the current spending by the Central Bank of Iraq for the benefit of government banks."
 
He noted, “Most of the current spending will turn into a consumer demand that ultimately represents a demand for the US dollar, and with the central bank meeting this demand to finance imports, foreign reserves are expected to witness a decline in addition to the decline resulting from the decrease in oil revenues if the current data do not change. ".

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Based on the timing is seems to be an effort to promote support for the whitepaper reforms in Parliament

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8 minutes ago, dinarham said:

Balls out !! Toot Toot !!!


Weegie - Turn Ur Head And Cough ! :o 

 

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Butt The Ape Says - Don’t ‘Toot Toot’ ...

 

:D  :D  :D 

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Concern among the people about the dollar: clear indications of an increase in the exchange rate .. Will the government go to the "hard choice"?


2020-10-14
 
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Yes Iraq: Baghdad

 

Monitoring a number of observers and those interested in the exchange rates of the dollar in Iraq, real indicators of the high exchange rates of the dollar against the dinar in the Iraqi market, amid expectations and fears of the continuing rise in the price.

The exchange rate of the dollar against the Iraqi dinar was at noon today on the Al-Kifah Stock Exchange, 124,300, while the purchase price in exchange came to 123,750, and the selling price 124,750.

These prices are higher than the prices this morning, Wednesday, as the price on the Al-Kifah Stock Exchange came to 124,150, while the exchange rate in exchange reached 123,500 for purchase and 124,500 for sale.

This rise came after the stock exchange recorded on Tuesday, 123.800 dinars per 100 dollars, as the exchange rate was affected after statements by the central bank governor in which he spoke with "dissatisfaction" about the decline of the central bank's reserves of the dollar.


Reserve is declining

The Governor of the Central Bank of Iraq, Mustafa Ghaleb Makhif, said, “The decline in the global price of oil and the reduction in production in Iraq, based on the OPEC agreement, led to a decrease in crude oil revenues and thus the dollar amounts that were sold by the Ministry of Finance to the Central Bank of Iraq in exchange for the Iraqi dinar that it uses In financing their expenditures locally ”.

He added, "This led to a decline in the accumulated quantities of foreign currency at the central bank, as well as the process of discounting the securities issued by the Ministry of Finance, for the purpose of bridging the deficit witnessed by the government in financing its spending, especially the current spending by the Iraqi Central Bank for the benefit of government banks."

He noted that “the majority of current spending will turn into a consumer demand that ultimately represents a demand for the US dollar, and with the central bank meeting this demand to finance imports, foreign reserves are expected to witness a decline in addition to the decline resulting from the decline in oil revenues if the current data do not change. “.

Earlier, the Minister of Finance revealed that the cash reserve at the Central Bank is $ 53 billion, while late last year the reserve reached $ 67.6 billion, which means that the reserve has lost about $ 15 billion.

 

Permanent rise ... or fluctuation?

A number of observers and interested people indicated that the dollar prices may continue to rise against the dinar in the Iraqi market, after the central bank talked about the decline in the bank’s reserves of the dollar, which may lead to the bank’s reduction in pumping hard currency into the markets, which leads to a lack of supply and an escalation in demand, and thus The high price of the dollar in the markets.

 

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A number of observers believe that Iraq may go to raise the exchange rate of the dollar against the Iraqi dinar for several reasons, the most important of which is preserving the bank’s reserves of hard currency and not forfeiting it, in addition to that the dollar exchange rate will provide cash liquidity from the Iraqi dinar to secure the payment of employees ’salaries. This option will make the value of salaries low, and that a salary equivalent to 600 thousand dinars, its value may be equal to 300 dollars only.

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A shocking surprise: “hidden points” in the white paper for reforming the Iraqi economy ... topped by the reduction in salaries with “conditions and a new peace.”


2020-10-14
 
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Yes Iraq - Baghdad

 

The "Iraqi Economists" blog revealed, today, Wednesday, October 14, 2020, the content of the white paper announced by the Ministry of Finance and submitted to the House of Representatives to vote on it as a plan to reform the Iraqi economy and get out of the financial crisis that is going through the country.

The blog says that the Finance Ministry did not accurately announce the details of the white paper, and it was kept secret for private reasons, and then it turned out to be a copy of the World Bank's conditions.

She added: The paper focuses on the automation of non-oil revenues, the job number for all employees and their intersection in the Ministry of Finance, including the Kurdistan region, as well as imposing new taxes, customs pricing and service wages.

And she continued: The paper contains points for rationing the operational budget to prevent waste, in addition to the existence of a new job ladder with new salaries and allocations, and there are provisions for the participation of the private sector and companies in the implementation and management of projects.

And she explained: All that was mentioned is mere expectations and it has not been announced what it is and when to start implementing it.

On the other hand, economist Nahed Al-Shammari says about annual operating salaries and allocations of 70 trillion dinars as an operational budget.

Al-Shammari explains that the size of the operating budget is approximately 70 trillion dinars, which represents nearly 70% of the budget. The salaries are divided into 40 trillion dinars, which include nominal salaries, certificate allocations, severity, cut, exceptional, special, position, bonuses, promotions, contracts and retirement.

And he adds, as for the second section, they are operational allocations of 30 trillion dinars, and include petrol, kerosene, dispatches, repairs, car purchases, basic purchases, luxury purchases, communication cards, repairs, hospitality, overtime, compensation and others.

He confirms that it is possible to reduce salaries from 40 to 35 trillion by canceling the privileges and exposing the fictitious "alien" and double-salary and exceptional allocations for special peace, position, special allocations and other measures, and it is also possible to reduce the operational allocations from 30 to 10 trillion according to professional economic and financial engineering being the most extravagant, corruption and waste National money and interest-free rate of 75% and achieved 25 trillion dinars in the treasury of the Iraqi state.

Al-Shammari concluded that this is a very important aspect and trend in curbing operating spending, as a first step, to be followed by reform steps in other aspects, rather than running on borrowing.

Advertised content from the white paper:

The 97-page “white paper” file included several items, highlighting the problem of the Corona pandemic and its impact on oil prices, and the formation of a unified pension system that secures the salaries of all retirees, as well as warning the paper about the threat of the second wave on the salaries of employees and retirees.

The Iraqi government has included in its white paper, several articles, in a brief form for the purpose of making them easier for the reader.

The reform paper states that rationalizing expenditures and increasing revenues should be through:

Reducing the primary deficit in the general budget to a sustainable rate of 3 percent of GDP over the next three years (the current deficit is 20 percent of GDP).

Reducing the salary and wages bill from 25 percent of the GDP to 12.5 percent within three years, through the implementation of measures including, limiting the employment process in the public sector to the most necessary ones, with exceptional approvals, and isolating the self-financed public companies' payroll from funding Government, and setting a higher ceiling for employee salaries, in a way that achieves fairness and reduces differences.

* Preparing and launching the operational and investment allocations on a quarterly basis, and developing rules and regulations related to basic expenditures.

* Reforming the retirement fund by gradually stopping its financing from the budget, and restricting payments to the fund only, while preserving the state's contribution.

* Establishing a performance and merit-based support system for state-owned enterprises to reduce financial support for public companies by 30 percent every year for a period of three years.

* Applying a reduction to the total government subsidy as a percentage of the gross product, up to 5 percent within 3 years, and it is worth noting that the current subsidy rate is 13 percent.

Referring to the reform paper referring to the Corona pandemic and its impact on the collapse of oil revenues, she explained that the expectations of oil sector experts indicate the return of the balance in supply and demand in a way that supports the stability of oil prices, in 2021, but the resurgence of the second wave of the Corona pandemic may threaten this scenario. Therefore, oil revenues projected for the years 2020-2021 will not be able to cover salary payments to employees and retirees only, regardless of any other current expenses.

The reform paper showed, "The salary payments for employees and retirees account for about 122 percent of the oil revenues for 2020, while the worst percentage witnessed in previous crises was in 2016 and reached 88 percent," noting that "spending on salaries witnessed about 60 percent between 2014. And 2020 ”.

According to the reform paper, “In the event that measures to reduce spending are not taken seriously and significantly, the indirect monetary financing by the central bank is the only remaining source, which leads to unsustainable future consequences.” Indicating that “the white paper adopts a moderate The selling price of Iraqi oil is about 35 to 46 US dollars, and the decrease in the price of the dinar will contribute to restoring the competitiveness of the Iraqi economy.

Regarding a unified pension system that covers all business sectors, "completing the structure of the retirement fund through achieving financial sustainability and modifying the contribution and benefits system."

The paper pointed out that "preparing a draft comprehensive retirement law under the name of the Social Insurance Law, including ensuring the inclusion of all workers in the mixed public, private and cooperative sectors to cover retirement benefits."

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Iraq is currently "bankrupt": foreign debt of about $ 100 billion ... is caught in an "OPEC + trap" to pay fines in Kurdistan that violates the reduction


2020-10-14
 
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Yes Iraq - Baghdad

 

The economic expert, Tariq Al-Sheikh Ali, spoke today, Wednesday, about a "real bankruptcy" not with money witnessed by the Iraqi state, and among the most prominent conditions for external borrowing, he revealed the amount of financial debts owed by Iraq.

Tariq Al-Sheikh Ali said in a televised interview that “the economy is how money is managed, secured, found, and how it is distributed, and the Iraqi economy has fallen into the soft region, with clear big shocks in government performance, overlapping powers and the loss of financial watchdogs.”

Sheikh Ali added, "The Iraqi government should have put in place economic reforms at least a year ago to avoid the current salary crisis, and the government's tendency to borrow, especially internally, which exacerbated the financial problems in light of the increase in debt."

He continued that "Iraq exports about 4 million barrels of oil daily, and with the rate of stability of the barrel price at 40 dollars, this means that Iraq achieves about 49 billion dollars annually, in addition to about 9 billion dinars revenues from border crossings, with the improvement of tax performance, Iraq has 66." One billion Iraqi budget revenues.

The economic expert noted, "Iraq is witnessing financial bankruptcy at this time, but it is not real bankruptcy. Rather, real bankruptcy occurs in the process of managing the country's economic system, which ranks fourth in oil, and the second in oil reserves."

He pointed out that "going towards external borrowing from the International Monetary Fund, requires the existence of sovereign guarantees on oil, and other measures," indicating that "the external debt owed by Iraq has reached more than 80 billion dollars."

On the reduction of oil production and Baghdad's fall into the "disaster of pledges", economist Ahmed Al-Hilali says that the previous government signed the reduction agreement with OPEC, although it did not abide by the planned reduction until the handover of ministerial portfolios in May 2020.

Al-Hilali revealed in his post that the current government’s finance minister, Ali Allawi, blamed the previous situation, and the minister who had the theory of financial engineering does not know the distribution of salaries, that the current government renewed the agreement with OPEC +, and it was extended to the end of the current year, and it is likely that the agreement will cross half of 2021. .

 

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Al-Hilali explained: As the current government compensated the previous accumulator, which Iraq did not abide by, and the worst of all, the current government pledged to OPEC to compensate the region’s failure to commit to the reduction of 500 thousand barrels, and the compensation will be distributed over the next 3 months.

He indicated that the commitment of Iraq to the reduction came with the consensus of the voters (OPEC and outside OPEC) and the countries threatened to raise production if Iraq did not reduce its production, even if Iraq was an unorganized country for OPEC, the decision is past it.

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Al-Rafidain Bank announces the reinstatement of the dollar currency sale window

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16:09 - 10/14/2020
 

Al-Rafidain Bank announced, on Wednesday, the reinstatement of the window for selling currency in dollars to banking companies.

The bank said, in a statement received by / the information /, that "it was decided to re-operate the auction window for selling currency in dollars to banking companies."

He called on those companies to "review the main branch of the bank in Baghdad, Al Shorja, for the conditions and instructions for selling currency."

And he considered that "the conditions are easy and easy and return to the benefit and positive for the companies." 

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Rafidain Bank Re-Works The Window Of Currency Sale To Banking Companies  LINK

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Pompeo: We will continue to support the sovereignty of Iraq

image.jpeg.6628ebb5ffcb88e1da9041967f0ac4dd.jpeg

 

14th October, 2020


US Secretary of State Mike Pompeo affirmed, on Wednesday, that his country continues to support the sovereignty of Iraq.

"There are those trying to target Iraqis and American diplomats to stop this support," Pompeo said in a press conference that "Mawazine News" followed. "Nevertheless, we continue to support Iraq politically and economically and support its freedom, and the Iraqis know who are the good powers in the Middle East."

He added, "We are pleased with the Iraqi security measures to protect diplomatic missions," referring to "supporting the sovereignty of Iraq in the face of those who undermine security." 

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