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Mr. Sadr tweets on the budget and warns


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KRG ready to abide by budget commitments: PM Barzani

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A file photo of Prime Minister of the Kurdistan Region Masrour Barzani. Photo: KRG

ERBIL, Kurdistan Region —The Kurdistan Regional Government (KRG) is ready to adhere to its commitments in the recently-passed budget bill, Prime Minister Masrour Barzani said on Wednesday, also calling on the federal government in Baghdad to send funds to Erbil for the first three months of the year. 

"Passing of the bill is an achievement for all Iraq and Kurdistan,” he said in a press conference following a meeting with the Council of Ministers. 

“In normal circumstances this should not have been considered as an achievement but rather something normal, however the topic was politicized.”

The budget bill, approved by the Iraqi Council of Ministers in December, took more than three months to be passed by Iraq’s parliament. It was finally put to a vote on March 31. Under the law, the Kurdistan Region will hand over revenues of no less than 250,000 barrels of oil per day at state-regulated prices to Baghdad in exchange for federal funds.

"The KRG is ready to fulfill all responsibilities as part of this budget,” he added, calling on the federal government to “perform its duties” and send the funds owed for January, February and March.

Kurdish and Iraqi leaders alike have voiced hope that the passage of the bill will lead to better Erbil-Baghdad relations, with the end of months of financial disputes.

“Let’s be optimistic about the Iraqi budget. I urge the federal govt to deliver its obligation under the new law. It will not address all of our disputes, but it is a strong basis to tackle the remaining issues,” the Kurdish PMtweeted on Wednesday.   

Barzani also added that a draft of the new KRG budget is being prepared to be sent to the Kurdistan Region parliament. 

“This budget was an compromise — it doesn’t address all the hopes of either party. Our principal win is the continued protection and reinforcement of our constitutional rights," he said.

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Parliamentary law announces the possibility of returning the budget to the House of Representatives

 

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7th April, 2021

 

A member of the Parliamentary Legal Committee, Salim Hamza, announced, on Wednesday, the possibility of returning the budget to the House of Representatives if some of its provisions are challenged, even if the President of the Republic approved it

Hamza said in an interview with the Iraqi News Agency and its follow-up, "Al-Eqtisad News", that "the budget can be returned to the House of Representatives if the budget is challenged based on the constitutional articles, whether approved by the President of the Republic or not," indicating that "this does not mean completely rejecting the budget. Only identifying the articles that have been challenged and that need to be modified

He added that "the approval of the President of the Republic is something routine and not mandatory," noting that "the budget is approved 15 days after voting on it. He stressed that "there is no pressure to return the budget to the House of Representatives because there is political consensus to pass it

Yesterday, Tuesday, the General Secretariat of the House of Representatives sent the Federal Budget Law for the fiscal year 2021 to the Office of the Presidency of the Republic, after the parliament voted, on March 31, 2021, on the law as a whole.

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Is it possible to return the budget to the House of Representatives?  LINK

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Al-Kazemi reveals the upcoming files of the US-Iraqi strategic dialogue

Al-Kazemi reveals the upcoming files of the US-Iraqi strategic dialogue
 
 
04/07/2021 17:46:42
 
The Prime Minister and Commander in Chief of the Armed Forces, Mustafa Al-Kazemi, chaired today, Wednesday, a meeting of the Ministerial Council for National Security, in which he discussed developments in the security situation in the country, as well as the topics on its agenda.
 

Al-Kazemi stressed at the beginning of the meeting, "We have basic tasks represented in protecting and fortifying the state, through strengthening and rebuilding constitutional institutions, especially the Iraqi army and the rest of our security apparatus." 

He stated, "Iraq's distinguished regional and international relations support the direction of protecting the state," stressing that "last week witnessed a qualitative Iraqi contact with its surroundings and the world, whether through official visits to the Kingdom of Saudi Arabia and the United Arab Emirates, or the continuous international delegations to Iraq to strengthen cooperation and support." 

The Commander-in-Chief of the Armed Forces stressed that "the great development in the capabilities of our security forces, and the change in the form of the terrorist threat on the ground, have paved the way for the departure of nearly 60% of the coalition forces during the past months of the life of this government." 

While he stressed, "This matter enabled Iraq to move soon to the stage of the absence of the need for foreign combat units, and to limit themselves to training, advisory, logistical support and intelligence cooperation roles, until Iraq reaches the stage of self-sufficiency with the efforts of its sons and their cooperation and solidarity."

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Al-Kazemi reveals the axes of the new round of strategic dialogue between Baghdad and Washington  LINK

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In the joint strategic dialogue .. America: Iraq has opened up to its Arab and international surroundings

 
In the joint strategic dialogue .. America: Iraq has opened up to its Arab and international surroundings
 
 
04/07/2021 18:13:46
 
A spokesman for the Ministry of Foreign Affairs, Ahmed Al-Sahaf, announced: The third round of the Iraqi-American strategic dialogue will be launched through visual communication technology.
 
Al-Sahaf said, "Foreign Minister Fuad Hussein and his American counterpart Anthony Blinken open the Iraqi-American strategic dialogue session."

For his part, US Secretary of State Anthony Blinken said, "Our meeting today is an affirmation of the partnership between Iraq and the United States, indicating that "the Iraqi government is going to lay the foundations of democracy.
 

He added, "The Iraqi government has devoted itself to the principles of the constitution through its government approach, stressing that" the relationship between the federal government and the region has witnessed a development towards solving the outstanding problems.

He stressed that "Iraq is witnessing an openness in its relations within its Arab environment, its Islamic neighborhood and at the international level," noting that "His Holiness Pope Francis's recent visit to Iraq confirms that Iraq today is a regional and international gateway to peace."

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2 hours ago, 6ly410 said:

KRG ready to abide by budget commitments: PM Barzani

I'm sure that the crooked Barzani family and fellow crooks in Kurdistan has already sent the 250,000 barrels of oil to Baghdad for the months Jan, Feb and March...yeah right 

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With the start of the round of strategic dialogue, Baghdad sends a message to Washington

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7th April, 2021


Minister of Foreign Affairs, Fouad Hussein, on Wednesday, sent a message to the United States of America, regarding joint cooperation, memoranda of understanding and agreements signed between the two countries.

Hussein said, in a speech during the launch of the third round of the strategic dialogue between Baghdad and Washington, according to a statement by his media office, Mawazine News received a copy of it: I offer my thanks and appreciation for your response to the invitation to hold the third round of the strategic dialogue, and to convene the implementation of the Supreme Committee that emerged from the Strategic Framework Agreement for the relationship of friendship and cooperation between the Republic of Iraq and the United States of America.

He praised the "sincere efforts made by the two parties to overcome obstacles and make this round of dialogue a success," adding,"When we talk about the depth of the relationship between the two friendly countries and the relationship of the strategic partnership, we cannot help but recall the efforts of the United States of America and the support provided to Iraq. "In order to enhance security, stability and democracy in it, and end the era of the previous regime, which today marks the anniversary of the founding of its defunct party, as the Iraqi people chose to live in freedom, dignity and rejection of injustice."

He added, "Our meeting today comes as an affirmation of the partnership relationship between Iraq and the United States, and the serious efforts of the two governments to strengthen it and complete the joint efforts that were made in the previous two rounds of strategic dialogue, as the first round was held virtually on June 11, 2020, while the second was held in the capital."

Washington on August 19, 2020, and resulted in the signing of a number of memoranda of understanding and agreements on basic principles that covered many sectors such as (the oil and gas sector, electricity, financial, health, environmental, and cultural sectors, in addition to security and military aspects).

He said, "In our meeting today, we look forward to completing the tangible progress achieved in the aforementioned aspects, and working to implement what the two sides agree upon during this round of strategic dialogue." 

He continued, "As you know, the Iraqi government has devoted the principles of the constitution through its government approach, and has worked to consolidate human rights, values of citizenship and respect for religious, sectarian, ethnic and national diversity in Iraq, and it is going to establish the foundations of democracy. 

One of the government's priorities is to hold early elections in response to popular demands and achieving political reform. The Iraqi parliament has therefore enacted the new election law, and a date has been set for its conduct on the tenth of October of this year, and the Iraqi government is working to ensure the broad participation of all components of the Iraqi people, with a commitment to strengthening oversight and providing financial, logistical and security requirements, to achieve the highest Standards of integrity and transparency, along with international oversight in this electoral process, to ensure successful elections.

He continued: "Within the framework of the relationship between the federal government and the government of the Kurdistan region of Iraq, the relationship has witnessed a development towards solving the outstanding problems, leading to the approval of the federal budget," adding: "And in line with the government's approach to adopting a policy of balance in its foreign relations, positive neutrality and distancing Iraq from being an arena.

For conflicts and a departure from the policy of axes, as Iraq is witnessing an openness in its relations within its Arab and Islamic neighborhood and at the international level as well, which confirms the restoration of Iraq to its role as a meeting point for regional and international partnerships to achieve mutual interests. 

And he added, "The recent visit of (His Holiness Pope Francis) to Iraq came to confirm that Iraq today is a regional and international gateway to spread peace and love between the peoples of the region and the world, as a country for peaceful coexistence among its components regardless of their different ethnic, racial and religious affiliations. The peoples of the region who seek peace and freedom."

And he added, "It is no secret that we faced together many security challenges during the last stage, and I would like to refer to the Iraqi government's praise for the efforts made by the United States government to rehabilitate and train the Iraqi security forces, equip them, and provide advice in the intelligence field up to the readiness required in relying on their own capabilities." In order to enhance the sovereignty and security of Iraq and preserve its gains by defeating the terrorist organization ISIS."

The Minister of Foreign Affairs praised the "joint cooperation and coordination between the Iraqi security forces of all kinds with the international coalition forces led by the United States of America, which participated and are still in defeating the" terrorist organization ISIS "to complete its final elimination, describing the terrorist organization as a threat not only to Iraq and Syria, Rather, it is on the entire region and its reflection on international peace and security."

He stressed, "Our security forces still need the programs offered by the United States of America related to training, arming, equipping and developing expertise, and we seek to continue bilateral security coordination and cooperation," pointing to "the commitment of the Iraqi government to protect members of diplomatic missions, their headquarters and facilities."

And he continued, saying: "The Iraqi government has worked since the first day of assuming its duties to accomplish its economic reform program. To achieve this, it launched its White Paper and sought to fundamentally change its economic policy, and its main goal was to diversify the resources of the Iraqi economy, which depends on oil exports." 
He explained, "This drastic change has faced great challenges, foremost of which are the repercussions of the Covid-19 pandemic and the sharp decline in oil prices, early last year, which cast a shadow over the various sectors of the state, especially the health sector and the shortage of resources and equipment it suffers. Economy and money, a challenge that adds to a number of other challenges. In order to implement the Iraqi government's economic reform program, this requires stimulation of international support and an enhancement of expertise in this regard.

Regarding the energy file, Hussain stressed, "The Iraqi government is determined to achieve its security in this sector and to totally depend on its resources, especially in the field of gas, to stop its waste and environmentally harmful emissions, and to rely on the electric energy produced locally through its stations, and on clean and renewable energy sources, which is a step.

New and promising in Iraq, and in this regard we call on the United States to strengthen our partnership through memoranda and agreements signed between the two countries, and what will be agreed upon later, especially in the aspect of developing the oil and gas fields and the electricity sector, in order to achieve the desired goal and what we aspire to be self-sufficiency in the field energy".

He stressed, "the importance of partnership in the field of investment in various sectors, and strengthening the presence of American investment companies with experience and competence to ensure the smooth flow of their work in the promising Iraqi markets, and we also call for strengthening partnership projects in various important and vital sectors."

He concluded by saying: "I confirm Iraq's keenness to cooperate and strengthen the partnership with the United States of America in all fields, especially security, as well as in the fields of energy, health, environment, economy, culture, and education, in a way that promotes common interests between the two friendly countries, and we hope in our talks today." 
Reaching common understandings and agreements for all sectors of cooperation, and we look forward to the continuation of the strategic dialogue between the two countries in subsequent rounds.”

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3 hours ago, GreedyDinar07 said:

I agree with you Retiredofficer, I have been around the same amount of time and I understand your frustration!! I don't think anything will happen until after the elections when Al-Khedemi is the Official PM. Also, the New CBI Building is scheduled to be completed by 2022, so I don't believe anything will happen until the end of this year or the beginning of next year. JMO...If nothing happens by then I am going to totally ignore Iraq until I see something on the news about their people celebrating in the streets! I am hopeful because the IMF, World Bank, G7 etc are involved this time around. Other than that I would'nt be here. I was the same way back in the day like these new guys are now. I am gonna remain hopeful until then1 Go Iraq Go RV!! 

 

This sounds right on, according to the only guy that has been right about this investment, as bad as I hate to admit it!  I was sure praying for March 2021, as we know that didn’t happen! I still would jump up and down with joy if they do something positive with their currency in 2021! Unfortunately all the signs are pointing to 2022! I certainly hope I’m wrong! Not upset or frustrated just looking at it for what it is! JMHO 🤠

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11 hours ago, coorslite21 said:

Thanks for all of your posts...your efforts are very appreciated!    CL


The Articles Are Just The Appetizers ! ;) 

 

 

But Goofin’ On The Bro’s Is One Of The Real Main Featured Attractions While We’re Stuck Waiting It Out - Here In The ‘Dinar Investment’ Purgatory Penalty Box ! :o 

 

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:D  :D  :D 

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The President of the Republic approves the 2021 budget and returns it to the government to implement it, starting tomorrow

 

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  • 2021-04-07 
 

Shafaq News /

 

An informed political source said, on Wednesday, that the Presidency of the Republic had approved the budget law and returned it to the government to work on it.
 
The source told Shafaq News Agency that the President of the Republic, Barham Salih, approved today the federal budget for 2021, and it was sent to the Ministry of Finance to start working on it, starting tomorrow, Thursday.

The Deputy Speaker of Parliament, Bashir Haddad, announced yesterday, Tuesday, that the parliament will refer the Federal Budget Law for the year 2021 to the Presidency of the Republic for approval.
According to a document signed by the Deputy Secretary-General of Parliament, Sadiq Jumah Hamid, addressed to the Office of the Presidency of the Republic, and obtained by Shafaq News Agency, that “based on Article 73, Clause III of the Constitution, we send to you (the Federal Budget Law of 2021).”

LINK

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Yes Artitech, I can hold out until then. I have waited for the last 14 years what's 8 more months give or take! It use to be exciting, now it is tedious but if it all goes down like we are hoping for, it will be well worth the wait for us. People have laughed at us, called us fools and said this is a scam but if people can get a return off of a bitcoin, why can't we get a return on a Country that is filled with resources. The same thing happened with the bitcoin and now everybody wants to buy some. All of the G7 Countries are investing in Iraq and I am going to follow the money. We are investing our time, research and what we could afford. Imagine what our Soldiers went through. It will be a great justice for the Iraq people because they have endured pure hell!! I have a feeling we will turn on the news one morning and see the people in the streets of Baghdad celebrating and we will know what time it is. It is in their Constitution that the Oil belongs to the people, so share the wealth and let Babylon rise again!!! Go Iraq!! Go Rv!! 

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3 hours ago, DinarThug said:

The President of the Republic approves the 2021 budget and returns it to the government to implement it, starting tomorrow

1617799281907.jpeg

 

Let’s Bro ! :o 
 

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:D  :D  :D 
 

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On 4/6/2021 at 10:22 AM, DinarThug said:

The governor of the Central Bank discusses with the Secretary-General of the United Nations the financial and economic conditions
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6th April, 2021

 

The Governor of the Central Bank, Mustafa Ghaleb, discussed with the Secretary-General of the United Nations in Iraq, Jeanine Hennes Plasschaert, the financial and economic conditions in Iraq

A press release issued by the Central Bank, received by "Al-Ektissad News", said, "Today, Tuesday, the Governor of the Central Bank of Iraq, Mustafa Ghaleb, received the Special Representative of the Secretary-General of the United Nations in Iraq, Jenin Hennis Blasshardt, and discussed during the meeting the financial and economic conditions that Iraq is going through and the measures that lead to it.
The management of this bank is part of the reform plan for the Iraqi banking sector

For her part, the United Nations representative, Mrs. Blashart, affirmed support system" rel="">support for the independence of the Central Bank of Iraq, like other international central banks, and its importance during the current and future period

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This is what the central bank governor discussed with Plasschaert  LINK

 

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The Central Bank launches new community contributions with the participation of the private banking sector


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7th April, 2021

The Central Bank of Iraq announced, on Wednesday, that it had held a meeting with the private banking sector, in the presence of the Mayor of Baghdad, Alaa Maan

In a statement received by Al-Iqtisad News, the Central Bank said that his governor, Mustafa Ghaleb, confirmed, "during his speech at the meeting, that the private banking sector has an honorable role in supporting societal initiatives, especially in the current economic situation in the country and the world

He added, "The Central Bank has taken upon itself, in community initiatives, matters of interest to support culture, empower women, provide job opportunities for young people, and rebuild monuments, buildings and heritage monuments of interest to the community in a way that revives the heritage of our country.
Private banks have responded greatly to these pioneering trends

According to the statement, Ghalib said, "The bank is seeking, in its new initiative, to rebuild Al-Mutanabi Street, the cultural center in Baghdad, and it is expected that these participations made by private banks today will contribute to developing the most important features of the capital, Baghdad, in addition to other community activities

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A new initiative for the reconstruction of Al-Mutanabi Street  LINK 

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The International Labor Organization and the Central Bank launch a financial initiative to support small enterprises in Iraq

The International Labor Organization and the Central Bank launch a financial initiative to support small enterprises in Iraq
 
 
04/07/2021 09:39:33
 
 
The International Labor Organization and the Central Bank of Iraq, with the support of the government of the Netherlands, launched a new financial inclusion initiative to support host communities and the displaced in Iraq. 
 
The initiative targets Iraqi youth and business leaders as well as existing companies to provide the very necessary financial services that help them establish and develop their own businesses, and face other barriers in the business environment that hinder access to decent and free work.

This initiative comes within the efforts made within the framework of the partnership to improve the capabilities of the displaced and host communities (Afaq), which seeks to improve access to education, employment and social protection services for these Categories.

The official opening activities were held to introduce the partners to the new initiative in Erbil and via the Internet, under the patronage of the Governor of the Central Bank of Iraq, Mustafa Ghaleb Mukhaif, and in the presence of Deputy Governor Ammar Hamad Khalaf.  
The opening was attended by the Minister of Labor and Social Affairs in the Regional Government, Kwestan Muhammad, and representatives of the Ministry of Labor and Social Affairs, the Ministry of Youth and Sports, and the Ministry of Planning. 
 
Also present were representatives of the ILO's social partners, Hans Akerboom, Consul General of the Dutch Embassy in Erbil, as well as the organization's development partners and stakeholders from the banking and financial sectors. 
“This is the first initiative in Iraq that will provide the beneficiary with training, financing and guarantee together, which is one of the requirements for the success of projects. International Labor and the Iraqi Company for Bank Guarantees, and training by the International Labor Organization, which prepared the trainers, who will in turn train the beneficiaries of this initiative. 

During the inauguration, the International Labor Organization's New Financial Inclusion Strategy for Iraq that is based on three levels of intervention and supports expanded access to finance was presented.

First, training young people and companies based on business management and financial culture to enable them to better manage their financial affairs and their relationships with banks and financial institutions; And refer them to partner banks to obtain the necessary financial services.

Second, building the capacity of financial institutions by training their employees in assessing and analyzing loans, and getting acquainted with international experiences in mainstreaming financial services, and business development service providers by training them on various training programs in business development and financial culture using the ILO training methodology.

Third, the initiative benefits from financing the "1 trillion initiative" launched by the Central Bank of Iraq to provide loans to proposed entrepreneurs from the displaced Iraqis and host communities, and work to support the Central Bank to enhance financial inclusion in Iraq.

Hans Akerboom, Consul General of the Dutch Embassy in Erbil said: “This initiative enables young people from marginalized societies to unleash their energies and supports them in achieving their aspirations. In parallel with other interventions from partners in the Afaq program, this initiative contributes not only to support employment but also to real access.
 
To decent work through the development of the private sector." Dr. said. Maha Sector, ILO Country Coordinator in Iraq: 
We developed this initiative to address the problem of youth unemployment by providing young women and men with tools and means to create job opportunities for themselves and other young men, in line with the priorities of the National Decent Work Program.
Very necessary financial, it is important to provide them with the necessary training, to be better prepared to manage and develop their facilities.

Prospects for a global partnership that includes the International Labor Organization, UNICEF, the United Nations High Commissioner for Refugees, the International Finance Corporation, and the World Bank, whose goal is to enhance protection and participation; Learning and skill development; In addition to securing the access of the displaced and members of the host community to financial and economic opportunities.
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8 minutes ago, Pitcher said:

It is time.  Time for the big Reveal or Not


So Apparently Bruce Is Wearing The ‘A’ Cups On The Top - And A Total ‘Decaf’ Down Below ! :o 

 

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Butt He Was Hoping That Those ‘A’ Cups Would’ve At Least Made His Nipples More Perky...

 

:D  :D  :D 

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You are so bad!!!  :lmao:

57 minutes ago, DinarThug said:


So Apparently Bruce Is Wearing The ‘A’ Cups On The Top - And A Total ‘Decaf’ Down Below ! :o 

 

62D08740-04EF-4B70-9881-4FE54BDC9D00.gif.2f1699cb809e958622eafa654b4ef21c.gif


Butt He Was Hoping That Those ‘A’ Cups Would’ve At Least Made His Nipples More Perky...

 

:D  :D  :D 

 

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Aboul Gheit in Baghdad next week

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10:40 - 08/04/2021
 

The Secretary-General of the League of Arab States, Ahmed Aboul Gheit, intends to visit Iraq next week.

According to sources, the upcoming visit comes as confirmation of the Arab League’s standing with Iraq in its policies aimed at extending bridges of cooperation and building confidence with countries.

The Secretary-General of the League of Arab States will meet the three presidents, ministers and parliament.

It is noteworthy that Aboul Gheit is on an Arab tour, the last of which was his visit to Tunisia, in which the Arab summit was supposed to be held in 2019 and postponed for two years due to the spread of the Corona pandemic. 

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Arab Monetary Fund releases April Edition of the Arab Economic Outlook for 2021

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7th April, 2021

Arab economies are expected to grow by 2.8 percent in 2021 and 3.6 percent in 2022 in light of the anticipated recovery of the global economy, the continuation of expansionary monetary and fiscal policies, and the positive impact of economic reforms

The recovery pace will vary according to the economic structures, health preparedness, policy space, and advances in digital transformation

Inflation rate is forecasted to decline to 10.6 percent in 2021 and to 5.9 percent in 2022 amid expectations of receding inflationary pressures

 The easing monetary policy stance is expected to continue in 2021 and 2022 to ensure sufficient liquidity to support economic recovery using a set of interventions that take into account ensuring banking soundness and financial stability

The consolidated budget deficit for the Arab countries as a group is expected to decline to 8.7 percent of the GDP in 2021, reflecting the anticipated positive impact of fiscal reforms

In line with its continuous efforts to support policymakers in the Arab region, the Arab Monetary Fund (AMF) releases the April edition of the "Arab Economic Outlook" report for 2021, which includes projections for the Arab countries' macroeconomic performance in 2021 and 2022.

With the availability of anti-virus vaccines, hopes for a gradual recovery of the global economy have revived, as the world economy is expected to grow by 4.5 and 3.8 percent in 2021 and 2022, respectively, according to the average of international institutions’ estimates. On the other hand, the international oil markets are expected to witness an increase in demand for oil by 5.8 million barrels per day during 2021 to support the gradual global economic recovery. This will work in conjunction with the continuation of the "OPEC+" agreement to reduce the quantities of oil produced on supporting its prices in international markets.

The Arab economies are forecasted to witness a gradual recovery and to grow around 2.8 and 3.6 percent in 2021 and 2022, respectively. Several factors will support this recovery, including the improved external demand, the anticipated rise in commodity prices, and the positive impact of economic reforms. The continuation of the expansionary fiscal and monetary policies and the stimulus packages to boost the aggregate demand in some Arab countries, especially those with adequate fiscal space, will also support economic recovery in 2021 and 2022.

In this context, oil-exporting Arab economies are anticipated to grow by 2.9 percent during 2021 in light of the anticipated increase in oil production levels and its prices in international markets and the continuation of the stimulus packages in some countries within this group especially the Gulf Cooperation Council countries. The growth of this group of countries is expected to rise to 3.6 percent in 2022, benefiting from the positive impact of reforms aimed at increasing economic diversification and encouraging private sector participation in output and job creation in a number of these countries.

The Arab oil-importing economies are expected to grow by 2.8 percent and 4 percent in 2021 and 2022, respectively supported by the expected improvement in external demand and solid domestic demand levels in some of these countries and the positive impact of economic reforms implemented in a number of these countries.

The inflation rate for Arab countries as a group is expected to decline to about 10.6 and 5.9 percent in 2021 and 2022, respectively. This comes in line with easing the precautionary measures in many Arab countries with the widespread availability of vaccines and the expected increase in the supply of goods and services.

On Monetary policy side, a number of Arab central banks are expected to adopt expansionary monetary policies to support the economic recovery during 2021 and 2022 by keeping monetary policy interest rates at low levels. In addition, Arab central banks will continue their efforts to intervene through the rest of other monetary policy tools to ensure the availability of adequate levels of liquidity in the local and foreign currencies in a way that will not only target supporting economic recovery but also ensuring banking soundness and financial stability. On fiscal policy, the consolidated budget deficit is expected to decline to 8.7 percent of GDP in 2021, reflecting the anticipated positive impact of fiscal reforms.

On the external sector, the trade balance of Arab countries will benefit from the improved performance of commodity exports and the positive impact of measures taken by some Arab countries to rationalize merchandise imports, especially consumer goods. It is also expected that the current account balance of the Arab countries as a group will benefit from a relative and gradual increase in service receipts in light of the expected easing of the restrictions imposed to contain the Pandemic.

Consequently, it is expected that the current account balance of Arab countries as a group will record a surplus of about 4.8 billion dollars, representing about 0.2 percent of the GDP in 2021. The current account surplus is expected to improve to 41.6 billion dollars
in 2022, equivalent to about 1.6 percent of the GDP of the Arab countries as a group.

The full version of the report which is a 76 page Arabic pdf is available here - LINK

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Mac Index and Currency Wars: Can McDonald's Sandwich Prices Help Governments Think About Currency Manipulation?

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8th April, 2021

 

Despite its recent depreciation , the dollar still looks strong. Using the simple BeckMac index to evaluate currencies, it appears that among the currencies of twenty countries, a trading partner of the United States, studied by the US Treasury, all have made gains compared to the dollar since July of last year. But those currencies, with the exception of the Swiss franc, are still undervalued. This gives the US government that has promised to take "strict enforcement measures" against currency manipulators a lot to deal with

The BC Mac Index is based on the idea that prices must adjust in the long run, with a basket of tradable commodities everywhere costing the same price. Converting prices into dollars at the prevailing exchange rates enables a judgment of whether a currency is undervalued or appreciated. To avoid the problem of differing goods that people buy in different places, we only compare the price of one good: your Mac McDonald's. The sandwich is not exactly the same across countries: the Indian maharaja of mac, for example, does not contain beef, but is consistent enough. The sandwich in Thailand costs 25% less than in America when it is converted into dollars at the prevailing exchange rates, indicating that the Thai baht is undervalued

Since wages tend to be lower in poor countries, your Mac sandwich might be cheaper. Therefore, an index adjusted for GDP ratio is used. On this basis, the Thai baht was no longer low compared to the dollar and the number of undervalued currency trading partners decreased to 11

Does your MAC Index comply with the US policy on currency manipulators? It appears that US policy is not looking at the same things that the index rates. Your Mac Index records the results; Meanwhile, policymakers try to punish countries that deliberately devalue their currencies. The US Commerce Department says it will not tolerate countries that intentionally devalue their currencies. The Treasury Department is concerned about manipulating the value of the currencies rather than devaluing them, and is looking for evidence of government intervention

However, given the fluctuations in the value of currencies during the past year, the BC Mac Index could act as a re-examination of US policy. When the Corona pandemic first spread, investors flocked to the dollar, but the Federal Reserve flooded the markets with liquidity in the opposite direction. According to the BKMAC index, fluctuations in the Mexican peso mean that it moved from a 53% undervalued ratio against the dollar to 61% during the first half of 2020. In comparison, the Vietnamese dong decreased by less than 0.5% against the dollar in the first half of the year. the past

In line with this, Mexico evaded US Treasury and Commerce Department sanctions; Vietnam did not escape. On December 16, the Treasury described Vietnam as a currency manipulator, citing huge commodities surplus it exports to the United States and its interference in foreign exchange markets. The Ministry of Commerce imposed tariffs on tire imports from Vietnam, on the grounds that the Dong was under pressure to lower its value as a subsidy to domestic producers

Recent US actions contradict PCMC results elsewhere. The Treasury described Switzerland as a manipulator, based in part on its intervention in the currency market of nearly $ 100 billion (14% of GDP) in the year ending in June. However, the core indicator and the revised benchmark indicate that the Swiss franc is overvalued against the dollar

The Ministry of Commerce used the issue of currency value manipulation to justify imposing customs duties on the twisted ties imported from China, used to seal plastic bags. US officials may need to note that after adjusting for GDP, the BC Mac Index indicates that the yuan is actually 2.5% above its true value compared to the dollar. This may be a cause for deeper reflection

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