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Baghdad Trade Counts The Benefits Of The High Dollar On The Iraqi Economy !


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Baghdad trade counts the benefits of the high dollar on the Iraqi economy

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28th October, 2020


The head of the Baghdad Chamber of Commerce, Firas al-Hamdani, on Wednesday, considered the rise in the price of the dollar positive for the country's economy, indicating that this would withdraw cash from people's homes.

Al-Hamdani said in an interview with Shafaq News, that "the high price of the dollar does not affect the country's economy," indicating that "the rise of the dollar by 10 to 20% will strengthen the Iraqi state budget by withdrawing surplus cash from people's homes and thereby strengthening the economy."

He added, "We are not looking for the economy of some merchants, but rather we are looking for the nation’s economy. If there is a deliberate withdrawal or a deliberate rise in the price of the dollar against the Iraqi dinar, then it is positive for the country's economy."

The former governor of the Central Bank of Iraq, Ali Al-Alaq, revealed in December 2015 that 77% of the Iraqi currency in circulation in the market is hoarded in residential homes, indicating that the bank will develop a plan to attract these funds for investment.

Al-Hamdani added, "The rise in the price of the dollar will benefit the local product as well, as the local product is expensive considering that there is no real infrastructure for the Iraqi factory, and since foreign goods are competitive despite their poor quality, the rise in the dollar will lead to raising the imported goods and the local product will be able to compete for the price of the goods. "Foreign."

It is noteworthy that the term "hoarding" means holding money and keeping it from circulation. Hoarding may be by burying money or keeping it in funds inside homes and not taking it out for circulation in the money and capital markets.

A member of the Parliamentary Economic and Investment Committee, Mahmoud Al-Zajrawi, confirmed in an interview with Shafaq News that there are attempts to raise the exchange rate of the dollar in the Iraqi market, so that every 100 dollars has 150 thousand Iraqi dinars, noting that “manipulating exchange rates will mainly affect the simple citizen.

The Iraqi market is witnessing a gradual rise in the exchange rates of the dollar against the Iraqi dinar. The exchange rate of the dollar today on the Kifah Stock Exchange recorded 125200 dinars per hundred dollars.

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A member of Parliament reveals reasons that led to the rise in the dollar’s exchange rate

 

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1,404 Economie 10/28/2020 14:15 ta 


Baghdad today - Baghdad

 

A member of the Parliamentary Finance Committee, Naji Al-Saeedi, said today, Wednesday, that the reason for the high exchange rate of the dollar in Iraq is the printing of the new currency without a balance covering it, and this is an explicit violation of the Central Bank Law No. 56 of 2004.

Al-Saidi said in a televised interview that (Baghdad Today), that "the reason for the high exchange rate of the dollar in Iraq is our use of the new monetary issuance or inflationary financing from exchange rate policies, as we printed a new currency and this is contrary to the Central Bank Law No. 56 of 2004, which states However, a currency is not printed if it does not have a balance to cover it, whether it is gold, bonds or cash in dollars, "indicating that" this caused an increase in the exchange rate of the dollar and hence the rise in the prices of goods imported into Iraq. "

He added, "The beneficiaries of that are the banks involved in the window of selling the currency and you get a difference from that, meaning, for example, you buy one hundred dollars at 118 thousand Iraqi dinars, and sell at 128 thousand dinars, and here the banks get a difference, an amount of appreciation. 10,000 dinars. "

A member of the Parliamentary Finance Committee continued, "If we have financial stability in the country, this amount of ten thousand dinars obtained by the banks can go to the budget, because the Ministry of Finance is the one who owns the dollar and sells it to the central bank who owns the banknote even if we had it." Financial stability, this rise in the dollar price leads to a reduction in the state budget deficit.

The Iraqi Political Economic Center said, in a statement received (Baghdad Today), today, Wednesday, that "the selling price of one hundred dollars in the local markets is 125,500 and the purchase price 124,500."

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Iraq ... Are Employees' Salaries Insured? Or Printing More Currency Is The Solution

 

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28th October, 2020


Iraq is going through a financial crisis that some consider suffocating to the most extreme levels, which was formed due to the files of corruption and the deterioration of the general economic situation in the country, which negatively affected the issue of distributing the salaries of state employees.

The economic problem that Iraq went through during the current year worked to delay the delivery of salaries for several months, which made the Iraqi street go through a state of instability, and many voices began calling for the development of economic solutions to cross this crisis.

Starting from the border outlets

In June of this year, Prime Minister Mustafa Al-Kazemi pledged to carry out large-scale campaigns to restore control of the border crossings, and according to  a statement issued by his office, in which he affirmed: “We incur billions of dollars annually in losses from gangs, groups, bandits, and influential people who sometimes control Ports”. The head of the Border Ports Authority, Kazem Al-Oqabi, revealed, in press statements, that there was a waste of 8 billion dollars annually in the border crossings due to "corruption." Where the Al-Kazemi government offered the option of controlling the border crossings, one of the solutions to re-pump more money, which is estimated at billions of dollars, into the state treasury.

Borrowing is the beginning of bankruptcy

Many demands have begun to approve the internal and external lending law of the Iraqi government, which aims to provide an economic reform program based on improving the economic level of Iraq and restoring stability to it, and the Iraqi parliament announced last June the approval of the law with a sixty-day deadline for the Ministry of Finance and the government to present a reform program Economic by law.

But in a previous statement to the Finance Committee of the Iraqi Council of Representatives, it said, unfortunately, we see that the government is trying to throw the ball in front of the House of Representatives and choosing between approving a loan that will soon perish and that is the bankruptcy of the country and whose results will be borne by future generations. Council approval of the borrowing law to embarrass the council and mix the papers. The committee added that the issue of securing salaries is not the responsibility of the legislative authority, but rather a purely governmental duty.

Print more currency to solve the salary issue

With the beginning of the current year, the issue of printing the currency began to circulate more, especially with each delay in the delivery of salaries to employees. Regarding the same matter, the bank commented in a statement that when the Ministry of Finance wants to finance spending on various spending units and salaries, it asks the Central Bank to strengthen its account with the Iraqi dinar in exchange for withdrawal. From its dollar account, no amount shall be deposited into the dinar finance account unless a corresponding withdrawal from its account is dollar.

Yesterday, Tuesday, the official spokesman for the Iraqi Prime Minister, Ahmad Mulla Talal, confirmed that there is no intention of the Central Bank of Iraq to print a new currency, while the salaries of employees are insured. Mulla Talal also confirmed that the news that the central bank intends to print a new currency is incorrect, because the central bank’s monetary policy administration is a clear one and aims to maintain the exchange rate, stressing that “employees’ salaries are secure.

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The Financial Committee warns of the danger of going to print a new currency to cover the deficit


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28th October, 2020


The Finance Committee warned, in the House of Representatives, on Wednesday, of the danger of going to print a new currency to cover the financial deficit.

Committee reporter Ahmed Al-Saffar stated that "the committee has a host for the governor of the Central Bank during the coming days, as he was supposed to attend yesterday, Monday, but he was late due to commitments and awaiting agreement on a new date for the meeting," indicating that "the process of issuing a new cash in the economy Unproductive like Iraq will lead directly to the phenomenon of inflation."

Al-Saffar added, "Inflation means a rise in commodity prices in the market with the loss of the local currency's value and monetary strength against hard currencies," pointing out that"those affected by this situation - if it happened - are those with limited and fixed incomes, meaning that the first affected are employees and property owners." 

He stressed that "this monetary policy will not benefit the Iraqi economy, which is already in a financial crisis, and there are other measures within the fiscal and monetary policy that could be taken by the government to alleviate the current crisis instead of going to print the currency."  Earlier reports indicated the intention of the Central Bank to print a new currency, which the bank denied in several statements since the beginning of this year.

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Parliamentary Finance: We will approve 9 trillion dinars to lend the government

 

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28th October  2020

 

The Parliamentary Finance Committee announced that it would approve lending the government 9 trillion dinars, not 31 trillion dinars

A member of the Parliamentary Finance Committee, Ahmed Mazhar, said that the Ministry of Finance needs 9 trillion dinars to cover the fiscal deficit in the coming months

He added that 31 trillion dinars, the size of the deficit, is incorrect, explaining that the Finance Committee refuses to grant this amount to the government

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Mineral investment maximizes non-oil resources

 

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28th October, 2020

 

The House of Representatives intends to legislate the Minerals Investment Law, in a move to maximize non-oil resources, as specialists in economic affairs saw that Iraq possesses the finest minerals in the world, but it is still not optimally exploited, calling for mineral investment in ways that enhance the state’s financial revenues

A member of the Parliamentary Economy and Investment Committee, Representative Nada Shaker Jawdat, said in an interview with Al-Sabah, which was seen by Al-Eqtisad News, that the House of Representatives is in the process of legislating a mineral investment law that will provide an opportunity to exploit and invest minerals in Iraq

And she added: "The mineral investment will contribute significantly to enhancing the state's financial revenues, provided that it is better exploited," calling for "the establishment of specialized factories to be invested in the process of sustainable economic development
 
Choosing sober companies

She pointed out, "the necessity of choosing sober international companies to invest in minerals in order to ensure the transparency of their investment, as they represent a natural wealth that belongs to the people, and it is necessary to think about how to use them to maximize financial revenues." And she continued: "The law is one of the best laws, but it needs real implementation on the ground after its approval," stressing that "the country needs to maximize its non-oil revenues, especially after the current financial crisis that hit it

For his part, the specialist in economic affairs, Ahmed Al-Majidi, said in an interview with Al-Sabah:Minerals investment is a step towards maximizing the state’s financial resources, because the country has natural resources represented by various types of minerals such as phosphates, sulfur, mercury, cement and other potential minerals that are still Untapped
 
Optimal investment of minerals

He warned that "Iraq has phosphate reserves estimated at more than 11 billion tons, as well as about 650 thousand tons of sulfur," noting that global mineral prices are high compared to oil prices. He explained, "The optimal investment of these minerals through their exploration, extraction, and then exportation will bring economic benefit to the state in terms of maximizing revenues," calling for "setting up plans to better invest in minerals." He stressed"the need to search for non-oil resources in financing the general budget, such as investing minerals or gas, controlling ports, collecting taxes, customs duties and others, in order to maximize financial resources in light of the financial crisis

For its part, the Parliamentary Economic and Investment Committee confirmed, earlier, that the Mineral Investment Law is ready to vote on it, and it is likely that the law will be passed during the coming sessions. Committee member Yahya Al-Ithawi said in a press statement: "The Mineral Investment Law is ready for voting, and it is expected to pass it during the next sessions." He added that "there are many details in this law, and we want it to be issued in a good manner, without gaps, to prevent the corrupt from entering
through it.

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Deputy: Minerals Investment Law Legislation Will Maximize Non-Oil Resources  LINK

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Hikmat Dakkak: Developing the economy requires an attractive environment for investment

 

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28th October, 2020

 

The deputy of the Baghdad Chamber of Commerce, Hikmat Dakkak, called for "the necessity of concerted efforts in order to create an attractive environment for international investment efforts that contribute to addressing many of the problems that confused the reality of the national economy, advancing the productive sectors and achieving a diversity of resources."
 
Dakkak added that "Iraq has many natural resources distributed among the different regions of the country that can achieve real diversification of revenues and create a sustainable economy through a set of projects that can be established in the industrial and agricultural sectors that achieve integration in economic fields."

Local market

He pointed out that "the possibility of investing all of the minerals spread in various regions of the country, by the qualitative local and international investment effort to serve the local and international market," pointing out that "Iraq, with its public and private sectors, has been able to succeed in the cement industry, which now covers the needs of the local market and can go to Exports the surplus to markets Region".
 
Industrial reality

He explained that “the industrial sector is the most important tributary of the economy, and we have successful industrial experiences that can be employed to serve the industrial reality, as there are 73 government factories that are idle and have obligations towards a large number of employees, and modernizing the industrial system for the private sector is inevitable after the obsolescence of its laboratories. The global industrial sector has developed a lot and technology has become an effective role in promoting the industrial sector and the quality production adopted by major global economies.
 
Specialized companies


Dakkak warned that “specialized and large companies with international resonance within the global labor market have a great desire to enter Iraq, which is crossed by a renewed job opportunity, which requires us to work towards creating the appropriate environment to attract such an effort that left a positive echo on the reality of the national economy by moving it to a stage New, more developed and moving the country to its true place among the world economies.


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Baghdad Chamber Of Commerce Calls For Creating An Attractive Environment For International Investments  LINK

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Representative Finance: The borrowing to secure salaries will be internal

 
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18:22 - 10/28/2020
 

The Parliamentary Finance Committee confirmed, on Wednesday, that borrowing will be internally from government banks and the Central Bank, attributing the matter to the existence of foreign debts on Iraq and its inability to borrow.

A member of the Parliamentary Finance Committee, Jamal Joker, said to / the information / the committee hosted today the advanced cadre of the Ministry of Finance, including the minister, to view the details of the loan amount and the actual disbursement doors for those required numbers.

He added that "after its amendment, Parliament will proceed to approve the law on the loan, but with an internal loan," noting that "the approval will be preceded by an inquiry from government banks and the Central Bank of Iraq, the possibility of borrowing and securing those sums or not."

Cougar explained that "Iraq cannot borrow abroad because it has large debts, which will push it to internal borrowing."

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Temara Al-Shididi invites to invest in stocks

 

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28th October, 2020

 

Economic specialist Temara Hussein Al-Shdidi stressed the importance of expanding the culture of shares and its role in achieving the benefit of the national economy and the investor.
 
She added that "a large group of society does not understand anything about the reality of trading shares in the Iraqi Stock Exchange, which makes it imperative for all relevant parties to stand at this important issue and study the points of defects and diagnose them accurately, and then work seriously and effectively to develop appropriate solutions for this."  Command”.

She pointed out that "investing in stocks is done through carefully regulated mechanisms with several options for those who wish to invest in securities, as there are brokerage companies whose role is to direct the investor towards the shares that are expected to achieve the highest interest, and this is based on the experience gained by the brokerage firms."  She pointed out that "brokerage firms always advise that the citizen invests part of his savings to invest in the shares of joint stock companies," pointing to "work to build a broad base for investment in stocks, for its positive role in economic life." 
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Al-Kaabi: The Iraqi cybercrime law will be "the best in the world."

 

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28th October, 2020


Hassan Karim Al-Kaabi, First Deputy Speaker of Parliament, confirmed, on Wednesday, that the Anti-Cyber Crime Law, and after the major amendments that have been made to it by the House of Representatives, will be the best global law in this aspect, indicating that the Iraqi citizen will be the first and last beneficiary of it. This came during the joint workshop organized today, Wednesday, October 27, 2020, by the Parliamentary Security and Defense Committee headed by Deputy Muhammad Reda, and the presence of the advanced staff in the National Security Agency, to discuss the provisions of the draft law on combating cyber crimes.

Al-Kaabi said, "The Presidency of the Council of Representatives, the Security and Defense Committee and all the relevant committees have been keen, for nearly a year and a half, to reformulate all the provisions of the draft law that was sent by the government at the time and was written in the form of everyone's person as not meeting the ambitions, and from here the Council began Representatives hold workshops, meetings, meetings and seminars inside and outside Iraq, in the presence of all parties, including academics, federations and trade unions, in order to listen to their opinions and include them in the law, so that it comes out in an ideal and the best international form.

During the workshop, the most important remarks of the experts of the National Security Agency were listened to and the extent of the possibility of adding them or applying them, in preparation for starting the stage of maturing the law in its final form and including the proposals of other relevant authorities, and then including it on the agenda of the Council and voting on it during the next stage.

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Exhibitions General Manager: The electronic export license is a gateway to the advancement of the Iraqi economy

 

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28th October, 2020


General Manager of the Iraqi Exhibitions Company at the Ministry of Trade, Sarmad Taha Saeed, confirmed that the electronic export license is a gateway to the advancement of the Iraqi economy, as it opens the export window for its wrestlers to Iraqi exporters, which contributes to the introduction of hard currency into the country.

Saeed said during a television interview, "According to the directives of the General Secretariat of the Council of Ministers, which stressed the need to resort to electronic governance and similar to the import permit, work has been done to issue an export license, as it was circulated to the ministries and sectors concerned and in coordination with the General Authority of Customs for the purpose of electronic connectivity. And training them in the form of meals and delivering them to the accounts of the export system."

He added, "The process of electronic linking between the ministries and the concerned sectors contributes to limiting and eliminating administrative and financial corruption, cases of manipulation and fraud, and missing the opportunity for the weak-minded as well as reducing time and routine. He noted, "There is no objection to issuing export licenses for the type of exported material after obtaining official approvals from the sectoral authorities and the ministries of health, agriculture and industry."

In the same context, the Director of the Export Department at the General Company for Iraqi Fairs, Maytham Al-Tamimi, confirmed that "more than (70) materials are exported abroad, and the most prominent of those materials that are exported are dates of all kinds, oil derivatives, locally manufactured food cans, leather, and others."

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Continue to internally borrow. You hope there’s the proper resolve & oversight to make good on payback, quickly: otherwise they’re throwing gasoline on the fire.

Also, just this morning I anticipated ( again ), yet another financial rabbit being pulled out of the hat. 
If big things coming “ soon “ with Kazemi driving the bus, hope it all comes out in the wash. Otherwise, they’ll be all washed up.

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Committee: The Borrowing Will Be For Employee Salaries, Supplies, Medicine And Care


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29th October, 2020


The Finance Committee in the House of Representatives confirmed the existence of a tendency to limit the amount of borrowing in the fiscal deficit law for the purpose of securing employee salaries, ration items, and medicines.

The committee’s rapporteur, Ahmed Al-Saffar, said, according to the official agency, today, Thursday: “The committee listened to the government's viewpoint regarding the financial spending of the deficit financing law.

He added, "The Finance Committee is waiting for the answer to the question sent to the Prime Minister's Office regarding talking about the possibility of securing salaries in the event that the disability law is not approved, after which the amount of the borrowing is determined."

He pointed out that the second reading of the deficit financing law may witness a reduction in the amount of borrowing to be limited to securing the salaries of employees and retirees, social care, ration card items and medicines.

 

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Member of Parliamentary Finance: The Ministry of Finance has not yet launched financing for October salaries

 

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29th October, 2020

 

A member of the Parliamentary Finance Committee, Sherwan Mirza, confirmed today, Thursday, that the salaries of employees are so far late because they have not reached the ministries and government institutions, stressing that the task of providing them is by the government and not the House of Representatives

Mirza said in an interview with (Baghdad Today), "The Ministry of Finance has not launched funding and allocations to all ministries so far, to pay employees' salaries for the month of October. He added that "the government is trying to throw the ball in the House of Representatives, and to show it to employees as the basis for their salaries being late, but in fact the task of providing salaries is a governmental task and parliament has nothing to do with it

It is noteworthy that Iraq has been suffering, since the spread of the Corona virus that led to the collapse of oil prices, difficulty in providing the salaries of employees and retirees and the social protection network

Earlier, the government sent a draft law on financing the fiscal deficit to Parliament, which includes allocations to finance salaries and necessary expenditures

The House of Representatives initiated in a previous session the first reading of the financing bill, the fiscal deficit. However, the 41 trillion dinars contained in the law was an obstacle to its passage inside the parliament. On Wednesday, the Parliamentary Finance Committee announced, after a lengthy meeting with representatives of the Finance Ministry, that it had reached a complete view on the government's needs. The head of the committee, Haitham Al-Jubouri, said in a press statement that the committee will proceed towards completing the second reading of the deficit financing bill

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Foreign Policy: Iraq is a missing element in the discussions by Trump and Biden

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29th October, 2020


A report by Foreign Policy magazine confirmed that among the important issues in US foreign policy that were almost absent from discussions of the presidential elections is the issue of Iraq and the role of the United States in the Middle East.

The Foreign Policy report stressed that Iraq is the main pillar of any US strategy in the Middle East, especially in light of its joint position with Iran and a number of important countries in the region.

Moreover, it possesses one of the largest global oil reserves, and the flow of Iraqi oil will be necessary for the growth of the global economy in the coming years, indicating that if Washington wants to deter Iran and its proxies, it must do so in Iraq.

The report wondered about the reasons that made the Iraq issue almost absent from the discussions of the candidates for the upcoming presidential elections, Donald Trump and Joe Biden, despite its strategic importance.

The report emphasized that the American people's rejection of the so-called eternal wars does not mean abandoning Iraq, but rather finding a strategy that supports political pluralism and democracy.

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Al-Morshedy: There are many question marks on the government after its previous statements that there was no money

 
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09:04 - 10/29/2020
 
 

The deputy of the coalition of Iraqis, Asaad Al-Morshedy, said that there are many question marks on the government after it confirmed and previously stated that there is no financial crisis until the end of this year, at a time when it is calling today to vote on the borrowing law in order to finance salaries.

Al-Morshidi said to "the information", "The Minister of Finance stated a month ago that there are funds and that there is no problem in financing salaries, in addition to that Al-Kazemi confirmed that there is no problem in the distribution of salaries until the end of this year.

He added, "There is something surprising about the government's demand to legislate the borrowing law in order to save salaries, in addition to the fact that there are big problems that the government's borrowing will leave."

And he stressed the need that "the government must move away from the policy of starvation and procrastination, especially since the Ministry of Finance confirmed the existence of sufficient funds and the absence of a problem in securing salaries." 

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Iraq is basically a country of clueless selfish hoodlums that will never get it together. Reminds my of Mexico on steroids. I have been holding many dinars for a decade. If Trump gets re-elected I will hold for 4 more years. If Biden gets elected I’m selling them all. Seems like all hope is gone, at least in this lifetime. When hope is gone, what else is there? 

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Iran desperate to maintain Iraqi financial lifeline

 

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28th October, 2020 by Mustafa Saadoun 

 

Iran's central bank governor, Abdolnaser Hemmati, recently paid a surprise visit to Baghdad, three days after the United States slapped sanctions on 18 Iranian banks.

Iran sees in Iraq an economic lifeline and the only solution to circumvent the US sanctions ordeal, through formal and informal means. A source at the Iraqi Central Bank who was present at an Oct. 12 meeting between Hemmati and his Iraqi counterpart, Mustafa Ghaleb, told Al-Monitor, “Hemmati left the meeting empty-handed regarding the settlement of dollar-denominated debts to Iran.” The source, who spoke on condition of anonymity, said, “Hemmati asked for the settlement of these debts in dollars. But his Iraqi counterpart assured him that his country is committed to the decisions of the US federal bank.” Following the meeting, Hemmati said in a statement that Iraq owes his country $5 billion. His statement coincided with Iranian news reports that Iraq will soon release Iran's funds.

In a move that did not follow standard protocol, Iraqi Prime Minister Mustafa al-Kadhimi hosted Hemmati during his visit to Baghdad. “This reflects the seriousness of the Iranian financial impasse,” economic expert Abdul Rahman al-Mashhadani said in a press statement to the Al-Araby Al-Jadeednewspaper. He added that the Iranians are looking for a new solution through various banks, and that this required the presence of the Iranian central bank governor in Iraq.  Although Iraq formally adheres to the sanctions imposed on Iran, hard currency keeps flowing from it to Iran on an ongoing basis.  Iraq is always at the top or near the top of countries that import products, including much-needed electricity, from Iran. Such transactions help Iran secure hard currency. However, a number of experts say that at least some of the Iraq money is going to Iran without any Iranian goods being imported. 

The settlement of Iraq’s debts to Iran was raised during Kadhimi's visit to Tehran in July and his meeting with Iranian Supreme Leader Ali Khamenei. The Iraqi prime minister affirmed that his country cannot pay these debts in dollars since it is committed to the US sanctions. However, according to an Iraqi government source who spoke with Al-Monitor on condition of anonymity, “Iran managed during the government of [Prime Minister] Adel Abdul Mahdi to get some debts settled in US dollars. These funds were sent to China and from there to Iran.” Not only that, a large number of private banks in Iraq, as well as armed factions, are aligned with political parties close to Iran. These have played a major role in helping Iran secure hard currency through imports between the two countries.

On Oct. 19, former Iraqi Finance Minister Baqir Jabr Solagh said in a press statement that Iraq must distance itself from the conflict between the United States and Iran and find a way to pay Iran what it owes in order to prevent Iran from cutting off Iraq's electrical power supply. Meanwhile, the financial situation in Iraq remains unstable. On Oct. 14, Ghaleb projected a drop in the country’s foreign reserves due to an increase in import financing and a decline in dollar-denominated revenues.

In an interview with Al-Monitor, a former economic expert at the General Secretariat of the Iraqi Council of Ministers, Salam Sumaisem, said she was concerned about reports that there could be a truce deal between the United States and armed Shiite factions that would allow Iraq to release money to Iran. She said, “The visit of the governor of the central bank of Iran aimed to test the pulse of the Iraqi government as to the debts owed to Iran.” But a former economic adviser to the Iraqi government told Al-Monitor on condition of anonymity, “The visit of the governor of the central bank of Iran to Iraq is not related to the funds that Iraq owes, but rather involved other funds funneled to Iran through Iraqi government institutions controlled by the parties and factions loyal to Tehran.”

It seems impossible to end the flow of dollars from Iraq to Iran. Iraqi private banks loyal to armed parties and groups have great influence over the Central Bank and have been reported to receive more than $100 million from it per day; a story in the Arab News last year detailed how middlemen were being used to convert Iraqi dinars into dollars at the central bank’s daily auction of hard currency, with the dollars then getting transferred to Iran. All this prevents the state, which is officially committed to US sanctions, from coming close to fully enforcing them.

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Al-Araji : Attempts to dismiss Al-Halbousi from the presidency of Parliament will fail

 

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29th October, 2020


Former Deputy Prime Minister Bahaa al-Araji confirmed, today, Thursday, that the attempts of the new Sunni front to dismiss Parliament Speaker Muhammad al-Halbousi will fail despite the large political blocs welcoming the move, pointing out that the latter’s success covered the weakness of the parliament.

In his speech to "The Resolution for You" program, Al-Araji explained that some political blocs have changed their position on Prime Minister Mustafa Al-Kazemi because they did not obtain positions, and his success means the failure of the Dawa Party and the Islamic parties, indicating that the government imposed on the Prime Minister from the rest, Fatah, Sunnis and Kurds.

The former Deputy Prime Minister commented on the financial crisis and the White Paper, saying: The financial crisis is intended to pass internal and external projects and may push Iraq to sell its borders as part of an international project, and the government should benefit and seek the help of security institutions in reconstruction projects, similar to the Egyptian experience, as it does not have the money to pay salaries and is waiting Parliament to approve the loan law, warning that all Iraqis will demonstrate demonstrations if salaries are cut during the next two months.

He added, that the White Paper is a model, but it needs men to implement it, and an American team developed it in cooperation with the Ministry of Finance and stipulated that it be implemented to collect international aid, noting that Iraq did not go bankrupt until June of next year because of the reserve's existence, although its value is not the size of debt.

He continued, that the Ministry of Finance will raise the value of selling the dollar to the Central Bank to reach 150,000 dinars, especially since the funds that come out from the Central Bank for import are transferred to unidentified persons and goods return for them only 15 percent, in addition to the absence of state institutions or real supervisory bodies as they are distributed according to The quotas, calling on the government to impose a 10 percent rate on currency auction transfers to provide cash for the state.

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Iraqi Finance reaches an option that secures the remainder of the salaries in 2020

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30th October, 2020

The Ministry of Finance said on Friday that the federal government has no choice in securing salaries but to resort to short-term loans until the end of this year.

In a statement received by Shafaq News Agency, the ministry stated, “Last week, a number of public statements and inquiries were made regarding the delay in paying the salaries for the month of October. This comes in the wake of the delay in paying the salaries of the month of September,” pointing out that it “confirmed Repeatedly, the current government revenues, in light of low oil prices and Iraq's commitment to OPEC's decisions to reduce oil production, are insufficient to meet the government's current expenditures. At present, monthly oil revenues are less than 50% of the government's current expenditures. We expect this situation to continue in near future".

She added, "To address structural imbalances in public finances, the Ministry of Finance has embarked on a three-pronged program to address short, medium and long-term issues that affect the Iraqi economy," explaining by saying, "For the very short period, between now and the end of 2020, the Ministry of Finance does not see." "Any choice but to resort to short-term loans from state banks, which will then be deducted from the central bank. All other options, such as increasing revenues from customs or taxes or levies from the electricity sector, are simply not possible in the short term."

"Despite the necessity to rationalize and activate the generation of other non-oil revenues, such measures will not compensate, in the short term, for the shortfall in oil revenues, given the structure of our economy. All other procedures related to managing the public sector payroll require legislative approval before they are done," she said. Translate into spending cuts or revenue generation."

The Ministry of Finance noted that it “does not seek to increase the public debt unless it is necessary and its service is sustainable,” noting that “Iraq's debt at the present time is not excessive compared to the size of its economy. Public debt in the world has grown tremendously during the past twelve months, To address the negative consequences of the Corona pandemic. " She explained, "Globally, public debt as a percentage of GDP is close to 100%.   In Iraq it is still less than 75% of GDP. However, the Ministry of Finance is aware of the need to be careful in how to finance the deficit in public finances."

The Ministry of Finance indicated that it “was open and transparent regarding the state of public finances and issued accurate and timely information when requested by the House of Representatives. The Ministry is aware of the concerns that could arise as a result of delays in fulfilling government spending obligations. The situation today is fundamentally different from previous periods when it was exposed. Public finances are under pressure as a result of lower oil revenues.Not only has public spending grown rapidly in the past five years, but the decline in oil production and prices has been longer and deeper than previous periods, in light of a difficult global economy.

She pointed out that she "asked the House of Representatives to authorize her to borrow 41 trillion dinars for the remainder of the current year to meet the deficit in financing salaries and retirement payments, 19 and 20 dues, and other expenditures and investment projects."  She said, "If it is approved by the Council of Ministers and the House of Representatives, we believe that it will form the basis for addressing the issues of the economy in the medium term and rationalizing public finances during the period from 2021 to 2023."

"The Ministry of Finance played a key role in leading the team that developed the white paper. This aims to analyze structural problems affecting the Iraqi economy and provide detailed solutions to solve them. This reform program aims to reorient the axes of the Iraqi economy. The reform program will require a great deal of legislative work. And institutional and cannot be implemented without the support of Parliament."

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Ministry Of Finance: Delaying Employee Salaries Until The Borrowing Law Is Enacted  LINK

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