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Publishes a preliminary version of the 2021 budget: a change in the exchange rate and its revenues more than 91 trillion


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Deputy: The leaked draft budget is catastrophic and will not be passed in Parliament
  
{Baghdad: Al Furat News} Representative of the State of Law bloc, Mansour Al-Baiji, expressed of the "reform measures undertaken by the government that were proposed through a copy of the leaked financial budget draft and" containing catastrophic points that will lead to great harm to all the Iraqi people, and this matter cannot be accepted Permanently".

Al-Baiji explained in a statement that Al-Furat News received a copy of, "It would have been better for the government to take more serious reform steps through its support for the industry, agriculture and trade sectors to supplement the budget, not to cut off the people's livelihood and raise the value of the dollar against the dinar, which would cause an economic disaster for the country." .
He added, "If the budget law is sent in its leaked form, we will not pass it through the House of Representatives, and we will not be a reason to punish our people in this disastrous way under the name of reforming the economy or any other name because this matter is considered destruction for our people."
Al-Baiji explained that "the current situation in the country does not bear such wages, especially since our people are waiting for a lot from the government in the next year’s budget, such as the release of job grades and salaries of free lecturers, the return of their contracts canceled and the confirmation of contracts because the government does not cut salaries and other things will lead to the collapse of the general situation in the country."

He called on the government to "review itself and take more serious measures, especially in the next year's budget, before sending it to Parliament in its leaked form, because we will not pass next year's budget in this format, and we will not stand against our people, whatever the reason."

It is noteworthy that a copy of the draft fiscal budget for 2021 was leaked earlier to the media and social networking sites, and sparked widespread controversy and turmoil in the foreign currency market, as the exchange rate of the dollar on the local market rose in a frenzy and exceeded 1,300 dinars.

Forgiveness Al-Khalidi

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This is how I see it.   If a have 5 million dinars stashed at home and I see in the news, radio, newspapers that the CBI is planning to devalue the dinar from 1190 to 1450, I will looking li

Yeah this is all a setup to scare the citizens into bringing ALL their dinar into the banks before a 25-30% devaluation period!! It’s actually pretty smart to do it this way even though it screws the

I have come to the conclusion that everyone who runs the country of Iraq, including the independent Central Bank, are a bunch of booger eating Morons. The dollar has hit its lowest price point in two

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Deputy: Theft of $ 150 million in the budget next year
  
{Baghdad: Al Furat News} Representative Alia Nassif revealed a paragraph in the fiscal budget for 2021 that contains millions of dollars of corruption, indicating that there are common known names in this theft.

Nassif said in a statement today, the Euphrates News Agency received a copy of it, that "in light of the difficult economic circumstance and the semi-empty treasury and the scarcity of employees' salaries, the corrupt are mastering the theft of public money and their greed does not stop even in times of crisis and lack of funds, and today there is a paragraph in the budget of the year. The next includes the theft of $ 150 million through a loan to a company that owns two names, and these thefts are an extension of the thefts of {Luay Al-Khatib} {former Minister of Electricity}. We will explain to the Iraqi public opinion the details of this process, the place where the deal was concluded and who are the partners in it. "
She indicated that "the current situation is very worrying, considering that one article of the budget will be theft of $ 150 million through a loan, led by Luay Al-Khatib's gang, director general, minister and official in the former regime in Dubai," calling on the Prime Minister, the Integrity Commission and the honorable deputies to "stand up against This theft and an end to this misuse of public money. "
It is noteworthy that a copy of the draft federal budget law for 2021 was leaked yesterday in the media and included fixing the exchange rate of the dollar against the Iraqi dinar on the basis of {1450} and a deficit that exceeded 58 trillion Iraqi dinars, and the estimated revenues from exporting crude oil were calculated based on the price of 42 dollars Per barrel, and at the rate of exporting 3 million and 250 thousand barrels per day, including 250 thousand barrels exported from the Kurdistan region.
Ammar Al-Masoudi

 

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Iraqis panic as leaked budget draft signals devaluation

author-deafault.pngPTI
BAGHDAD, DECEMBER 18, 2020 05:09 IST
UPDATED: DECEMBER 18, 2020 04:26 IST
 
 
 

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Shop owners wait for customers at an almost empty market in Baghdad, Iraq.   | Photo Credit: AP

 

The draft law, which has to go through a Parliament vote first, gives an anticipated exchange rate of 1,450 Iraqi dinars for the dollar

A leaked draft of Iraq’s state budget has sent Iraqis into a panic as it confirmed the government’s intentions to devalue the national currency, the Iraqi dinar, and cut salaries to cope with the impacts of a severe economic crisis.

Discussions about devaluating the Iraqi dinar, which has been pegged to the dollar for decades, have been going on for weeks as the government worked to finalized the 2021 budget.

 

The draft law, which has to go through a Parliament vote first, gives an anticipated exchange rate of 1,450 Iraqi dinars for the dollar — a significant drop from the central bank’s current official rate of around 1,182 dinars for $1.

As the draft made rounds on social media on December 17, the Finance Ministry expressed “resentment and deep regret over the unauthorised publication” of the proposed law, saying public hysteria would impact the neutrality of Ministers.

The Cabinet is to discuss — and introduce possible amendments — to the draft in a session scheduled for December 19. Multiple officials said the leaked draft was authentic but stressed it might undergo changes in Parliament.

Sharp public reactions indicate the challenges the country will face implementing needed economic reforms in an election year, and in particular to the budget-draining public sector. Nationwide parliamentary elections, a year earlier than expected, are due in June.

“Budget preparation is a complex technical process... over a long period of time,” the Ministry said. “Releasing it prematurely to the media is a largely irresponsible act.”

Already, the value of the dinar is falling on the street, with exchange houses in Baghdad selling the dollar for 1,300 Iraqi dinars.

Public discussion over the government’s reform policy — dubbed the “white paper” — focused sharply on ways to bring the wage bill down from 25% of the GDP to 12%.

The draft budget took a step in this direction by looking to cut salary benefits, which sometimes exceeds the base pay of many in Iraq’s bloated public sector. Benefits can include incidentals such as danger pay, higher education degrees and hospitality expenses for high-level officials.

The news prompted an outcry from government workers fearing serious cutbacks with the devaluation compounded with benefit reductions.

“The majority of Iraq’s work force are government employees. We are the middle class, but (the government’s latest) decisions are going to make us the poorest class,” said Ali Kadhim, 50, a teacher.

“I am paying off two loans that take up a third of my salary. After these decisions I don’t know how much I am going to earn.” Several public workers echoed his fears, including physicians, dentists, school teachers and administrators in various ministries.

Reformists in the government consider public wages unsustainable.

Facing a severe liquidity crisis brought on by spiralling oil prices, the crude-exporting Iraq has had to borrow from the central bank’s dollar reserves to pay the nearly $5 billion in monthly fees for public salaries and pensions. Oil revenues, which account for 90% of the budget, have brought in an average of $3.5 billion since the oil price crash earlier this year.

In an October interview, Finance Minister Ali Allawi said devaluation was being considered seriously in talks with the International Monetary Fund. The IMF has proposed a rate of 1,600 dinars to the dollar, which the Iraqi government deemed “politically difficult” according to a senior-level official, speaking on condition of anonymity to discuss the IMF talks.

The anticipated rate in the draft of 1,450 dinars against the dollar “will help cover the financial deficit, but, of course, if they don’t manage to make some supportive steps for poor people, then the impact of inflation will be very severe,” said Mohammed al-Daraji, a lawmaker in the finance committee.

Parliament must still approve the law, expected to be deeply unpopular. This month protesters in the northern province of Sulimaniya burned down government buildings over delayed salary payments.

But there is little choice, said the senior government official. Without these steps, Iraq’s foreign currency reserves would dip below $20 billion by next year, he said. They currently stand at $50 billion.

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Conscious / Parliamentary Finance: We refuse to deduct employee allocations within the 2021 budget

 

Conscious / Baghdad / M.A.

Today, Friday, a member of the Parliamentary Finance Committee, Naji Al-Saeedi, confirmed the committee’s rejection of any deductions in the allocations and salaries of the “simple” employee within the 2021 budget, while hinting at hosting and parliamentary interrogations to the government if the draft budget leaked to the media is correct.

Al-Saeedi said in a press statement reported by the correspondent of (Iraqi Media News Agency / INA) that “the leakage of the draft budget bill, although it was not officially approved within the Council of Ministers, nor did it reach the Parliament and the Finance Committee, had a very large negative impact on the exchange rate of the dollar against The dinar, "indicating that" the factor of expectations of an increase in the exchange rate led to an increase in demand for the dollar and its price.

Al-Saeidy added, “Unfortunately, the entire government has not been able to maintain a draft budget until it reaches the House of Representatives, considering that it is a draft law and it will not be effective without a vote by the House of Representatives on it,” noting that “the previous statements of the Prime Minister about the possibility of no salaries For the next month and the subsequent leakage of a draft budget, all matters have a negative impact on the Iraqi economy, and the poor citizen is the one who pays the tax

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The 2021 budget and the dollar ... the central is "impotent" and the parliament exposes "secrets": the government has placed "budget hindrances" and knows "not to pass it"!

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Yes Iraq - Baghdad

A member of the Parliamentary Finance Committee, Jamal Cougar, confirmed today, Friday, that his committee will audit all the numbers contained in the draft federal budget law for the country for the year 2021 as soon as it reaches the parliament.

Cougar said in a televised interview, followed by "Yes Iraq": "The big deficit in the budget bill delayed its arrival in the House of Representatives," indicating that "the government knows very well that this large deficit will prevent Parliament from passing it."

He added that "the second reason is the failure to resolve the agreement between the central government and the Kurdistan Regional Government in order to translate it into clauses within the draft budget of 2021."

He pointed out that "Parliamentary Finance will check all the numbers contained in the draft law, as well as the extent of achieving justice in the distribution of wealth, especially since there is a state of dissatisfaction in the southern governorates."

The ministry is upset!

For its part, the Ministry of Finance expressed, yesterday, Thursday, its "resentment and deep regret" for the unauthorized publication of the draft budget for 2021.

"Preparing the budget is a complex technical process that includes many ministries, government institutions and international agencies concerned with the budget over a long period of time, and it cannot be fully understood without referring to the data, policies and strategies on which it is based, including the white government paper," the ministry said in a statement.

She added that "launching it to the media prematurely is an irresponsible act to a large extent, and this may precede the ability of ministers to comment impartially on the draft budget and amend it at a special budget session scheduled to be held next Saturday."

The ministry requested "not to pay attention to the exciting statements related to the budget that may arise during the next two days."

And she continued, "The Council of Ministers will discuss the budget in detail, which is the appropriate place to present its recommendations regarding it." Then the budget, after its approval by the Council of Ministers, is sent to the House of Representatives, ”adding that“ this is the correct approach and framework for discussion and deliberation regarding the budget, not social media, which may be full of inaccurate news. ”

The biggest disaster is coming .. How?

On the other hand, the economist, Ihssan Al-Kinani, said that the government will enter the country into an economic disaster, due to the continued high exchange rate of the dollar without government control, pointing out that political parties hinder control of the exchange rate.

"The exchange rate of the dollar is controlled by private banks that own large sums of money and operate in currency auctions and are not subject to the central bank's controls," Al-Kinani said, in statements monitored by "Yes Iraq."

He added that "some political parties control the private banks and control the exchange rate of the dollar, and their influence may impede the imposition of supervision or control by the central bank on the rest of the banks."

He stressed that "the government's disregard for this rise in the exchange rate will enter the country into an economic disaster, especially since Iraq imports everything in the market and does not depend on a national industry at all."

Budget leaks!

On Thursday (December 17, 2020), Yis Iraq obtained a “preliminary copy” of the draft federal budget bill for the year 2021, which included setting the dollar exchange rate at 1450 and reducing employee allocations.

The bill included setting the exchange rate of the dollar on the basis of 1450, equivalent to 145,000 dollars per 100 dollars, and restricting all actually generated revenues as final revenues for the account of the state treasury.

The budget stated that the number of state employees is 3.25 million, including (682 thousand employees in the Kurdistan region), salaries 41.5 trillion dinars, other salaries 6 trillion, retirement 20 trillion, social security 9.6 trillion, interest on debt loans 4,6 Trillions, offshore loan payments: 6.8 trillion.

The project included reducing all allocations granted to employees of all government departments financed centrally and independently, according to the percentages specified against each of them and granted to them according to effective laws and decisions of the Council of Ministers and came as follows:

(Risk allowances 50%, hospitality 20%, exceptional 20%, sustenance 33%, certificate 50%, lump sum, 40%, special 60%, university service 60%).

The bill also stipulated raising the price of fuel (gasoline) from 450 dinars per liter to 540 dinars per liter.

The budget authorizes the Minister of Finance to fill the actual deficit in the budget according to the amounts indicated in the sources mentioned below:

1- Issuing treasury transfers, 2- Issuing national bonds to the public, 3- Issuing bonds and treasury transfers to government banks, to be debited with the Central Bank of Iraq, 4- Loans from commercial banks, 5- Issuing foreign bonds, 6- Borrowing from international financial institutions, 7- Borrowing with the guarantee of international export guarantee institutions.

The budget indicates that all loans, bonds, transfers and project contracts financed by loans will be exempt from taxes and customs fees for ongoing and new projects, including the loan granted by the World Bank to the Ministry of Finance for the PFM contract project for the years 2016, 2017, 2018 and 2019.

The 2021 budget obliged federal ministries and entities not associated with a ministry and all governorates to cover their needs of local products, including private sector products that have an added value of more than (20%).

The draft budget concluded that the Council of Ministers may not issue any decisions that include granting an advance to any ministry or entity not linked to a ministry without having allocations for it in the general budget approved during the fiscal year.

The project included the suspension of all cabinet decisions and laws in force that allow the centralized state departments to dispose of the revenues collected through them for the purposes of operating expenses, and their revenues are transferred as final revenues for the account of the state's public treasury, including the state's public treasury's share of the profits of public companies and self-financed bodies and departments.

The fiscal deficit in the budget reached (58260763114) one thousand dinars (fifty-eight trillion two hundred sixty billion seven hundred and sixty-three million one hundred and fourteen thousand dinars), and in the case of excluding all arrears, indebtedness, and foreign and domestic loans that will finance investment projects amounting to (23229017817) one thousand dinars (three Twenty trillion two hundred twenty-nine billion and seventeen million eight hundred and seventeen thousand dinars).

The indebtedness represented by the internal and external debt installments reached (14761959590) one thousand dinars (fourteen trillion seven hundred and sixty-one billion nine hundred and fifty-nine million five hundred and ninety thousand dinars).

 

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Parliamentarian: We will not pass the 2021 budget in its current version

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The information / Baghdad ...

On Friday, Representative Mansour Al-Baiji announced that the House of Representatives rejected the leaked version of the Iraqi budget for next year, indicating that it includes catastrophic points, injustice and prejudice that will lead to great harm to all the Iraqi people, and this matter cannot be accepted completely.
Al-Baiji said in a statement that the information received, a copy of it, that “it would have been better for the government to take more serious reform steps through its support for the industry, agriculture and trade sector to supplement the budget, not to go to cut off the people's livelihood and raise the value of the dollar against the dinar, which would cause an economic disaster for the country. “.
He added, "If the budget law is sent in its leaked form, we will not pass it through the House of Representatives, and we will not be a reason to punish our people in this disastrous way under the name of reforming the economy or any other name because this matter is considered destruction for our people."
He pointed out, “The current situation in the country does not bear such measures, especially since our people are waiting for a lot from the government in the next year's budget, such as the release of job grades and the salaries of free lecturers, the return of their contracts, and the confirmation of contracts, not for the government to cut salaries and other things that will lead to the collapse of the general situation in the country. Consequently, the government must review itself and take more serious actions, especially in the next year's budget, before sending it to Parliament in its leaked form, because we will not pass the next year's budget in this format, and we will not stand against our people, whatever the reason. ”Ended 25

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1 hour ago, Officiallytook said:

Rates have never been in the budget ... No?

 

I mean this has got to be fakenews lol...

 

Is it the time for missinformation???

 

 

Past time for misinformation!! Bring it!! I love it!! 

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1 hour ago, pokerplayer said:

Iraqis panic as leaked budget draft signals devaluation

author-deafault.pngPTI
BAGHDAD, DECEMBER 18, 2020 05:09 IST
UPDATED: DECEMBER 18, 2020 04:26 IST
 
 

1x1_spacer.png

Shop owners wait for customers at an almost empty market in Baghdad, Iraq.   | Photo Credit: AP

 

The draft law, which has to go through a Parliament vote first, gives an anticipated exchange rate of 1,450 Iraqi dinars for the dollar

A leaked draft of Iraq’s state budget has sent Iraqis into a panic as it confirmed the government’s intentions to devalue the national currency, the Iraqi dinar, and cut salaries to cope with the impacts of a severe economic crisis.

Discussions about devaluating the Iraqi dinar, which has been pegged to the dollar for decades, have been going on for weeks as the government worked to finalized the 2021 budget.

 

The draft law, which has to go through a Parliament vote first, gives an anticipated exchange rate of 1,450 Iraqi dinars for the dollar — a significant drop from the central bank’s current official rate of around 1,182 dinars for $1.

As the draft made rounds on social media on December 17, the Finance Ministry expressed “resentment and deep regret over the unauthorised publication” of the proposed law, saying public hysteria would impact the neutrality of Ministers.

The Cabinet is to discuss — and introduce possible amendments — to the draft in a session scheduled for December 19. Multiple officials said the leaked draft was authentic but stressed it might undergo changes in Parliament.

Sharp public reactions indicate the challenges the country will face implementing needed economic reforms in an election year, and in particular to the budget-draining public sector. Nationwide parliamentary elections, a year earlier than expected, are due in June.

“Budget preparation is a complex technical process... over a long period of time,” the Ministry said. “Releasing it prematurely to the media is a largely irresponsible act.”

Already, the value of the dinar is falling on the street, with exchange houses in Baghdad selling the dollar for 1,300 Iraqi dinars.

Public discussion over the government’s reform policy — dubbed the “white paper” — focused sharply on ways to bring the wage bill down from 25% of the GDP to 12%.

The draft budget took a step in this direction by looking to cut salary benefits, which sometimes exceeds the base pay of many in Iraq’s bloated public sector. Benefits can include incidentals such as danger pay, higher education degrees and hospitality expenses for high-level officials.

The news prompted an outcry from government workers fearing serious cutbacks with the devaluation compounded with benefit reductions.

“The majority of Iraq’s work force are government employees. We are the middle class, but (the government’s latest) decisions are going to make us the poorest class,” said Ali Kadhim, 50, a teacher.

“I am paying off two loans that take up a third of my salary. After these decisions I don’t know how much I am going to earn.” Several public workers echoed his fears, including physicians, dentists, school teachers and administrators in various ministries.

Reformists in the government consider public wages unsustainable.

Facing a severe liquidity crisis brought on by spiralling oil prices, the crude-exporting Iraq has had to borrow from the central bank’s dollar reserves to pay the nearly $5 billion in monthly fees for public salaries and pensions. Oil revenues, which account for 90% of the budget, have brought in an average of $3.5 billion since the oil price crash earlier this year.

In an October interview, Finance Minister Ali Allawi said devaluation was being considered seriously in talks with the International Monetary Fund. The IMF has proposed a rate of 1,600 dinars to the dollar, which the Iraqi government deemed “politically difficult” according to a senior-level official, speaking on condition of anonymity to discuss the IMF talks.

The anticipated rate in the draft of 1,450 dinars against the dollar “will help cover the financial deficit, but, of course, if they don’t manage to make some supportive steps for poor people, then the impact of inflation will be very severe,” said Mohammed al-Daraji, a lawmaker in the finance committee.

Parliament must still approve the law, expected to be deeply unpopular. This month protesters in the northern province of Sulimaniya burned down government buildings over delayed salary payments.

But there is little choice, said the senior government official. Without these steps, Iraq’s foreign currency reserves would dip below $20 billion by next year, he said. They currently stand at $50 billion.

And so it begins 😉

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In an October interview, Finance Minister Ali Allawi said devaluation was being considered seriously in talks with the International Monetary Fund. The IMF has proposed a rate of 1,600 dinars to the dollar

The minister of finance already talked with the imf to determine the exchange rate and the imf devalue the rate to 1600. What do you think about 1600 dinarrock? I love the way you think , Drop the zeros and boom we have the rate $1.60. Isn't the rate $1.60 fantastic? I think everyone will love the rate $1.60.

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Fatah deputy: Increasing the dollar exchange in the budget is very unacceptable and it is possible to reduce these allocations

Fatah deputy: Increasing the dollar exchange in the budget is very unacceptable and it is possible to reduce these allocations
 
{Baghdad: Al Furat News} The deputy of the Al-Fateh Alliance, Abbas Al-Zamili, announced his refusal to raise the exchange rate of the dollar against the dinar in the federal financial budget for 2021.

Al-Zamili told Al-Furat News Agency that "raising the dollar exchange rate in the budget to 1450 dinars - as stated in the draft of the leaked budget - is very unacceptable, and we have other treatments to reduce the budget deficit, but by moving away from the dollar because if it does not stabilize, it will not stabilize for a long time. It affects the destitute segments, "stressing that" Parliament is serious about not passing the dollar exchange rate hike. "
He explained, "The deficit can be addressed and the high allocations can be addressed for employees of special grades and employees who receive high allocations, and to activate the tax and non-oil outlets and imports, as well as the outlets of the Kurdistan region."
He continued, "The oil that has risen in global markets these days is 50 dollars a barrel, and we will not accept 42 dollars in the budget, and if the price remains stable, we may raise the price to 46 dollars in the budget."
It is noteworthy that the media and social networking sites reported yesterday a draft of the fiscal budget version for 2021, which included fixing the exchange rate of the dollar against the Iraqi dinar on the basis of {1450} and a deficit of more than 58 trillion dinars, and the estimated revenues from exporting crude oil were calculated based on the price 42 dollars a barrel, at the rate of exporting 3 million and 250 thousand barrels per day, including 250 thousand barrels exported from the Kurdistan region and the reduction of employee allocations.

This leakage of the draft budget caused turmoil in the foreign currency market in Baghdad, as the exchange rate of the dollar in the local market rose to 1,340 dinars, before declining to 132 thousand dinars, after government and parliamentary assurances that the draft is not final and subject to modification. 
A special source for Euphrates News revealed that the Central Bank of Iraq will soon set a new price for the exchange of dollars in the country.
The source told {Al-Furat News} that "the central bank, starting next Sunday, will adopt a new price for the dollar, at a value of 1450 dinars for one dollar {ie 145 thousand dinars for one hundred dollars}".
It is noteworthy that the Central Bank of Iraq is currently selling dollars for 1190 dinars.
Ammar Al-Masoud

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Sulaymaniyah ... the currency market swings due to the instability of the dinar value

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 2020-12-18 07:42

Shafaq News / The spokesman for the currency market in the Sulaymaniyah Stock Exchange, Jabbar Kuran, said on Friday that the instability of the Iraqi dinar exchange rate against the dollar has negatively affected the buying and selling operations, which made the market in a state of anxiety and volatility.

 

Kuran added to Shafaq News Agency, that "the leaked draft of the 2021 budget, which was not confirmed, estimated the price of 100 US dollars at 145 thousand dinars in the currency auction, and according to estimates, banks will buy the dollar and sell it at 150 thousand in the markets." 

 

He pointed out, "The International Monetary Fund’s proposal to the Central Bank of Iraq to raise the price of the dollar, and the recent statements by the Finance Committee in the Iraqi Parliament, is to feel the pulse of the Iraqi street, because the markets will witness a rise in the prices of goods by up to 20 percent, which affects the citizen in particular. 

 

It is noteworthy that the exchange rate of $ 100 reached 136,000 dinars yesterday, Thursday, in Iraq's local markets, after the leakage of the draft fiscal budget law for next year, which estimated the exchange rate of the Iraqi dinar at 145,000 dinars against $ 100.

 

The Iraqi government says that what is included in the budget is only a proposal from the Ministry of Finance, within the draft budget.

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Al-Ba'ji: The upcoming budget includes great injustice and prejudice for the people

 
0fe88cee841cea55186337a23f0568da?s=26&r=Author: AhadNA3 On 12/18/2020 - 1:56 PM 151

Al-Ahed News - Baghdad,
MP Mansour Al-Baiji, today, Friday, was surprised by the reform measures undertaken by the government, which were presented through the leaked budget copy, which includes catastrophic points that will lead to great harm to all the Iraqi people, stressing that this matter cannot be accepted completely and we will not Pass it through Parliament.
Al-Baiji said in a statement that Al-Ahed News received a copy of, that “it would have been better for the government to take more serious reform steps through its support for the industry, agriculture and trade sectors to supplement the budget rather than to cut off the people's livelihood and raise the value of the dollar against the dinar, which would cause an economic disaster. For the country ”.
He added, "If the budget law is sent in its leaked form, we will not pass it through the House of Representatives, and we will not be a reason to punish our people in this disastrous way under the name of reforming the economy or any other name because this matter is considered destruction for our people."
Al-Baiji stressed, "The current situation in the country does not bear such measures, especially since our people are expecting a lot from the government in the next year’s budget, such as releasing job grades and salaries for free lecturers, the return of those whose contracts were canceled, and fixing contracts because the government cuts salaries and other things will lead to the collapse of the general situation in the country."
Al-Baiji called on the government to "review itself and take more serious measures, especially in the next year's budget, before it sends it to Parliament in its leaked form, because we will not pass next year's budget in this format, and we will not stand against our people, whatever the reason

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Deputy calls on the government to "correct" the course of the budget

Policy

2020-12-18 | 06:01

https://www.alsumaria.tv/news/سياسة/367290/نائب-يدعو-الحكومة-الى-تصحيح-مسار-الموازنة

نائب يدعو الحكومة الى "تصحيح" مسار الموازنةOn Friday, the representative of the Badr Karim Aliwi al-Muhammadawi bloc called on the government to correct the course of the federal budget in its correct form that is in the interest of the people, warning of tension in the street and the negative impact on it in case files are presented that do not serve the interest of the citizen.

 

Al-Muhammadawi said in an interview with Al-Sumaria News, "The budget that was leaked to the media does not meet the demands of the Iraqi people, especially since the people are going through a difficult stage of weak economy and health situation," indicating that "the budget talks about one thing and the people talk about something else." .

He added that "the budget spoke about deductions in the salaries of employees by up to 60%, which is incorrect and cannot be accepted, given that salaries are delayed every month, which increases the difficulties for the citizen and directly affects the economic situation," pointing out that "the coming of the budget In this way, it is considered unsatisfactory for the Iraqi people and the representatives of the grass. Therefore, the parliament and the government must pay attention to this matter and address these matters. "

He pointed out that "the leaked budget was the reason for the rise in the exchange rates of the dollar against the local currency, which had a negative impact on the Iraqi market," calling on the government to "correct the budget path in its correct form that is in the interest of the people because our primary goal is to satisfy the people and achieve their demands instead of putting up files. Tense street and the negative impact on it and the security and economic situation in the country

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The Parliamentary Finance Committee confirmed that the one who leaked the draft budget of the two thousand and twenty-one is not qualified to protect the interests of Iraq, and the committee said that the sudden rise in the exchange rate of the dollar was deliberate and caused by crises creators, adding that the House of Representatives will respond decisively to such actions that harm the country.

The Parliamentary Finance Committee describes the leaked draft of the 2021 budget as a "crisis trigger" and threatens a decisive response in the House of Representatives.

A leak of the draft general budget for the year 2021 made the local market fiery as it grappled with the high jumps of the dollar, which reached one hundred and thirty seven dinars per hundred dollars, and between a liquidity crisis, an interruption of salaries and an economic crisis that hit all joints of life in the country.
 
 
The Parliamentary Finance Committee described the draft draft as a "fabricator of crises" and was not qualified to protect the country's supreme interests. The committee said that the sudden rise in the exchange rate of the dollar was deliberate and caused by crisis inspectors, adding that the House of Representatives would respond decisively to such actions that harm the country.

Specialists attributed the sudden rise in dollar prices to the leakage of the draft, which included cuts to the financial allocations for employees, some of which reach sixty percent, and the re-work of imposing taxes on services provided by ministries and government institutions, which led to an increase in the level of fear among citizens and their assurance of their march towards the unknown.
 

The problem of the budget and employees ’salaries will cast a shadow over the Iraqi market, the purchasing power in the street, and the commercial trading ratios between the seller and the buyer. Therefore, Iraq will suffer from the disruption of the circulation of money and will witness a class financial division, as liquidity accumulates in people and scarcely among others.

The rise in dollar prices between the fabrication and the failure of the financial management and the leakage of a draft warning of an upcoming danger. Will the citizen be wheat between the two millstones, or will the crisis go away with the rise in oil prices globally
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36 minutes ago, rvmydinar said:

 

The minister of finance already talked with the imf to determine the exchange rate and the imf devalue the rate to 1600. What do you think about 1600 dinarrock? I love the way you think , Drop the zeros and boom we have the rate $1.60. Isn't the rate $1.60 fantastic? I think everyone will love the rate $1.60.

rvmydinar the rate of exchange at 1600:1 is $.000625/1 IQD. drop the zeros and you are at $.625/1 IQD. The exchange after dropping the zeros from the nominal rate of exchange becomes 62 cent or about 1.61 dinar/USD.

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1 hour ago, Spartakus said:

If my memory serves me well, I think that a rate has always been there. Someone can check it out.

 

If someone wants to look, can you direct them where you saw the exchange rate in any of the budgets you have reviewed. Budgets and hefty and complex. This would help someone find the rate. Does the rate state IQD is worth an IQD or $$$ dollar value?

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1 hour ago, mr.unlikely said:

rvmydinar the rate of exchange at 1600:1 is $.000625/1 IQD. drop the zeros and you are at $.625/1 IQD. The exchange after dropping the zeros from the nominal rate of exchange becomes 62 cent or about 1.61 dinar/USD.

Mr. Unlikely is absolutely correct sorry Rvmydinar! If Iraq lowers the exchange rate when you drop the zero and then RV it would make 1600 equal .625 cents to our dollar sorry I forgot this! So if Iraq does make the exchange rate of 1450 like they say we are at $.00068966/1 IQD so after dropping the zeros from there would give us an RV of about .69 Cents which is still an awesome rate of return!!

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2 hours ago, rvmydinar said:

 

The minister of finance already talked with the imf to determine the exchange rate and the imf devalue the rate to 1600. What do you think about 1600 dinarrock? I love the way you think , Drop the zeros and boom we have the rate $1.60. Isn't the rate $1.60 fantastic? I think everyone will love the rate $1.60.

 

RVmydinar ... this is a older post from a member of the house of representatives scroll down to the Sixth section monetary policy / exchange rate , interesting that it seems this might be what iraq is currently doing , a mod can delete it , i will not post the link as it was on another site but interesting read nonetheless this person suggest a 2 to 1 rate cheers .......

 

Baghdad – Mawazine News,
a member of the House of Representatives, Muhammad Sahib al-Darraji, on Wednesday presented a road map for solving the financial crisis in the country.
Darraji said, in a statement received by / Mawazine News / a copy of it, that “given the economic and financial situation in Iraq reaching the bottleneck stage, there must be solutions applicable to the near and far ranges, and through some professional experiences gained in the areas of government executive and legislative legislative work With accumulated experience from working in the private sector and touching the economic and service situation of the Iraqis at different levels, I would like here to present a short-term road map to contribute to solving the financial crisis and protecting the country’s economy must be followed by medium and long-term measures to reform the Iraqi economy and find a clearly defined economic doctrine for Iraq that changes the form of spending The country’s financial resources are commensurate with the societal nature and global ruling conditions of energy prices and the diversity of means of production. ”
He added, “This plan is summed up as follows: –
First: The general budget
1 – A simple construction and installation budget must be submitted and approved for the remainder of 2020 that clarifies the ruling real revenues and expenditures and what relates to these two items only and the ways of filling the resulting deficit and without touching on any other items.
2 – Building a budget for the year 2021 on a sectoral basis and on a fixed oil price for the operational budget and a mobile for the investment budget, directing the budget for salaries, purchasing the ration and medicines, sterilizing water and the educational process only and listing items that encourage dependence on investment and the private sector to address other sectors so that these provisions govern all budget law Laws to other and restrict them in favor of financing unfunded sectors.
3 – Providing the final accounts for the past years and validating them to know the deficiencies in financing certain sectors in exchange for wasting in other sectors in order to create an economic balance between the service and productive sectors.
Second: – The cash block:
Withdraw the cash mass stored with the community and try to invest it in an investment through the following: –
1 – Raise the interest rate for cash deposits in banks even if the monetary authority is forced to support the banks.
2 – Establishing projects in which the state contributes a certain percentage and the rest is offered for subscription, especially in projects of city centers (dawn town) and major industrial projects such as petrochemicals (Nebras).
3 – Offering some of the winning companies (or that could win by changing the management tactic) for subscription like air navigation company, airlines, cement, fertilizers, and others.
4- Selling oil coupons locally. At the prevailing price now and buying it a year later at the prevailing price then.
5 – Building confidence between the state and the citizen by committing to pay interest and profits.
Third: – Oil licenses
1 – Negotiating to postpone the oil companies’ dues or pay them in kind outside OPEC’s share.
2 – Evaluating company spending and reducing it to a minimum.
3 – Re-negotiation in consensual ways with oil companies to improve contract terms for the state when the oil prices drop.
Fourth: – Legislative measures
1 – Revoking the Coalition Provisional Authority’s decision to ban the export of raw materials and the export of some materials such as gravel, sand, and others.
2- Requiring the government to start licensing rounds to invest some mineral resources, such as phosphates, and others.
3 – Preparing a new salary scale that takes into account the economic situation and achieves social justice and encourages the employee to leave the job with a set of privileges outside the framework of the job.
4- Prepare a special bill to reduce all allocations granted under previous laws by a certain percentage.
5 – Amending some transitional justice laws and laws that have concessions that are no longer needed.
Fifth: – Governance and automation
1 – The Ministry of Finance issues the e-dinar for the purpose of collecting government revenues and fees and what distinguishes them from being non-negotiable in the market as cash and thus we have reduced corruption in this aspect as well as the state’s knowledge of the value of those imports quickly, to be issued by a government bank It is not done through private companies.
2 – Encouraging and organizing electronic payment, obligating banks and institutions to electronic payment, and encouraging sales outlets in the private sector to use electronic payment devices without commissions and ensuring that their accounts are fed by the national exchange in the Central Bank daily.
3 – The necessity of automating the ports and customs and linking them to any process of transferring the dollar or opening bank credits for the purposes of importing and controlling the border outlets and preventing militias and gangs from controlling them.
Sixth: – Monetary policy
A – The exchange rate
1 – Begin to gradually reduce the Iraqi dinar price to reach 1500 dinars against the dollar until the end of the year 2020 and review the economic situation.
2 – And then start another reduction up to 1,800 within 6 months.
3 – Then we study the possibility of deleting the zeros, so we will end with a fixed price of 2 Iraqi dinars per dollar.
B – Methods to address potential inflation and the effects of reducing the value of the Iraqi dinar so that this procedure is accompanied by the following steps: –
1 – Increasing nominal salaries for grades five to nine and increasing social protection net salaries by 12% to reduce the impact of potential inflation on the
fragile classes .
2 – Amending the currency selling mechanism to maintain the hard currency inside the country and that the dollar and other foreign currencies are sold and traded directly in the currency markets or through the stock market in order to get a real price of the Iraqi dinar against the US dollar and that the guarantor of the prices is the value of the available reserve The Central Bank of Iraq has hard currency.
3- Government projects pricing in the investment budget in dollars and financing the exchange units budget for the investment budget in dollars.
4- Setting an import platform, stopping some imports, controlling customs outlets, supporting the tax system, and exempting the local product from income tax for a period of two years.
5 – The state imports commercial foodstuffs into the market and injects it into the ration program in the event of high prices.
6 – Supporting fuel for public transport, factories and irrigation projects, and giving high relative importance to the food industries.
7 – Pumping a hard currency to the exchange markets to maintain the price level of the Iraqi dinar, which prevents price fluctuation due to possible speculation.
8 – Activating the role of economic security and entering the relevant government agencies to control the cash rhythm in the currency market and the food market.
Seventh: – State property
1 – Liquidate the unexploited government assets from real estate, buildings, vehicles, furniture, etc. by selling or entering into investment partnerships
2 – Selling lands that were overtaken by those who exceeded them at the same price to give a justification for their recovery from those who do not pay (and vice versa it cannot be recovered and take out those who exceeded)
Eighth: – The private sector
1 – Raise the credit limit of government banks to give loans.
2 – Activating the central bank loan initiative and easing guarantees for industrial, construction and agricultural projects, while controlling payments and linking them to completion rates and opening credits to move the private sector.
3- Finding ways through joint financing or external borrowing to finance government-funded projects and completing projects with
high percentages .
4- Reducing the restrictions of letters of guarantee and their expenses for ongoing unpaid advances due.
5 – Displaying productive projects for the purpose of investing them by the implementing agencies in exchange for completing them and entering the service.
6- Moving the housing fund and real estate bank loans to move the construction sector, which withdraws unemployment, being the largest
employer.
7 – Increasing taxes on imported commercial products and reducing them from imported raw materials to encourage the national product. “

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From 3n1's document above:

 

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

Edited by Carrello
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They aren’t proposing devaluing by 30-50% to then revalue upward 1000%. They’re proposing devaluation for a bit then a revenue neutral redenomination, aka the bad three letter word. If they truly devalue my confidence in this will drop significantly. The good news is we should find out soon. Remember the white paper reforms were formulated then Kazemi came here and made a few more important stops. Seems like a lot of hoopla for what any third world country is doing when they have big deficits, devalue. 

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