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The Central Bank determines the dollar price variables and the mechanism for disposing of oil differences


yota691
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2 hours ago, Laid Back said:

Powerful statement from the finance ministry;

 

“We started with correct reform work, starting with banks and customs, and we came out safely from the difficult economic situation."

 

 They should RV after the Baghdad summit and before the elections. Just my opinion.!

 

Go Iraq 

Go White Paper reforms 

Go development 

Go RV

I share your opinions...

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ERBIL — Iraq's Minister of Finance Ali Allawi said on Thursday that his country does not need any loans from the International Monetary Fund (IMF) currently, despite a previous statement by the minister saying that talks had restarted with the IMF for new loans.

 

Speaking to reporters, the Iraqi Finance Minister pointed out that Baghdad, "at the moment", does not need loans from the IMF, reminding that "we needed four billion for the financial reform after the improvement of the financial situation."

"Funds could be obtained from the IMF via several routes: the first is Coronavirus, but we did not need it. The second is the financial reform funds, which we needed. The third is sought to cover the massive financial deficits, but we did not need it as well," he added, according to Shafaq News.

Earlier on 7th August, Allawi pointed out that Iraq has brought back the talks to the table with the IMF for a $4 billion loan after a halt of such efforts earlier in the year.

Iraq started to face an economic crisis after the emergence of the coronavirus and after the oil prices began to fall down dramatically. It started talks with the IMF on loans, but the discussions were halted after the economic situation improved slightly with higher prices of oil.

"I don’t think we’ll reach an agreement with IMF before the end of this year," Allawi told reporters in Baghdad at the time.

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ERBIL (Kurdistan 24) – The Iraqi government announced on Thursday that it no longer needs to borrow certain funds from international financial organizations, but instead requested help in retrieving billions of dollars "smuggled" out of the Middle Eastern nation in recent years.

"We do not need loans from the International Monetary Fund (IMF) now and we no longer need the nearly 4 billion dollars for economic reform, after the improvement of the financial situation," said Finance Minister Ali Abdul Amir Allawi in a press conference held at his ministry in Baghdad 

He added, "Currently there are three available ways for obtaining loans from the Fund. First, the coronavirus loans we did not need, the economic reform loans we did need, and the loans to cover large financial deficits of countries we also did not need."

Allawi instead advocated for international assistance in seizing and retrieving money from the nation's coffers that has been smuggled abroad which the minister said amounts to "between $150 billion and $200 billion, only five percent of which is money taken from the former regime." 

The official provided few details regarding the funds in question or practical plans for how the international assistance would be provided.  

"The longer this money remains abroad, the more it dwindles. We need cooperation from countries and international courts to recover it, and this task is very complicated and not easily completed."

He explained, "We have begun moving on this and talking with several offices to retrieve the money. We started with funds now in neighboring countries, some of which has evaporated, like when the Central Bank of Lebanon told us about the disappearance of 20 billion dollars." 

In January, Allawi confirmed that Baghdad was in talks with the IMF to obtain a $6 billion loan.

 

At the time, an IMF representative said, "The Iraqi authorities have requested emergency assistance under the Rapid Financing Instrument, in a long-term arrangement, to support the planned economic reforms."

The IMF Rapid Financing Instrument provides rapid financial assistance and is available to all member countries facing an urgent balance of payments.

 

 

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 2021-08-26 11:22
 

Shafaq News/ Finance Minister Ali Abdul Amir Allawi confirmed on Thursday that 30 million people depend on state salaries, indicating that these salaries constitute 65% of the budget. 

Allawi said in response to a question by Shafak News Agency; The number of people who receive salaries and benefits in the state, including employees, retirees, and the social protection network is between 6.5 million to 7 million people, and each person supports 5 people, so the number of people reaches 30 million people, which is unhealthy.

He added that "the salaries that these people receive constitute 65% of the budget," noting that "the decisions taken during the past periods about the employment process and the state's inflation of this size did not leave us with other resources so that we can spend them for development and employment."

He pointed out that "it is not against employment, but rather the problem lies in the loss of productivity in government institutions," noting that "the ministry is in the process of conducting a new survey of the numbers of employees under the supervision of the Ministry of Planning to find out the real number of these numbers."

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 2021-08-26 12:50
 

Shafaq News/ Finance Minister Ali Abdul Amir Allawi confirmed on Thursday that he supports floating the currency in a flexible manner.

 

Allawi said in response to a question by Shafaq News Agency, "The Iraqi currency is floating, but the central bank intervenes from time to time until it places it within a certain bar, for example, plus minus 5 percent."

 

He added, "Personally, for me, the best kind of floatation is flexibility in pricing so that the price is not sacred as it was before when it entered people's minds without change, and thus economic problems accumulate and explode."

 

The Minister of Finance continued by saying, "There must be some kind of flexibility; it is not the flexibility with which you lose control over it, but the flexibility that stabilizes the price and setting a range of 2 to 3 percent for both parties." 

 

Allawi pointed out that "the central bank's policy is to maintain this price and put the gap between the official price and the market at an acceptable level," noting that "it has also proven that the stability of the exchange rate is important, except in the case of economic indicators that push you towards change."

 

Floating the currency is fully or partially liberalizing the currency exchange rate so that the government or the central bank does not interfere in determining it directly, but rather it is automatically released in the currency market through the supply and demand mechanism that allows determining the exchange rate of the national currency against foreign currencies.

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Iraqi Finance Minister "Supports Floating Exchange Rate" for Dinar

27th August 2021 in Iraq Banking & Finance News

By John Lee.

Iraq's Deputy Prime Minister and Finance Minister has reportedly said that he supports a floating exchange rate for the Iraqi currency, the dinar.

Shafaq quotes Ali Allawi (pictured) as telling a press conference on Thursday that the Central Bank of Iraq (CBI) intervenes occasionally to keep the dinar in the range of plus or minus 5 percent, adding:

"The exchange rate is not sacred as it was before. Fixing the rate leads to the accumulation of economic problems and explosion later. https://www.iraq-businessnews.com/2021/08/27/iraqi-finance-minister-supports-floating-exchange-rate-for-dinar/

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The Minister of Finance reveals the exchange rates of the dollar in the next budget in Iraq

 

 

16,030 Economie 2021/08/26 14:25 Baghdad today -

Baghdad Today, Thursday, Finance Minister Ali Allawi commented on the issue of the dollar exchange rate in the 2022 budget in Iraq. The minister said in a press interview that I followed (Baghdad Today) that "the exchange rate of the dollar against the Iraqi dinar will not change in the next budget." He added that "the preparation of the 2022 budget has been completed, and the budget will be presented within 3 weeks to the Council of Ministers," noting that "the exchange rate reflects many issues and its rise is beneficial for some economic sectors." The minister pointed out that "the change in the exchange rate created a competitive atmosphere in Iraq, and that the government's policy is to stabilize the exchange rate." Regarding the price of oil in the budget, Allawi said that "the price of a barrel of oil in the 2022 budget will be 50 dollars."

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Hitting the statement of the Minister of Finance.. Parliamentary Energy comments on setting the price of oil in the 2022 budget in Iraq

 

 

1,192 Economie 2021/08/27 13:43 Baghdad today -

Baghdad Today, Friday, the Parliamentary Oil Committee commented on the price of a barrel of oil in next year’s budget . Committee member Zaitoun Al-Dulaimi said in a statement to (Baghdad Today) that “Finance Minister Ali Abdul Amir Allawi set the price of a barrel of oil in the draft budget law for the fiscal year 2022 at $50 per barrel, and this is just a proposal, as the House of Representatives is the one who will determine the final figure. Relying on the current market prices, according to a special mechanism due to price fluctuations, and the adoption of the average ratio. She added that "the current parliament may not be able to approve next year's budget if the elections are held on schedule," noting that "the modern mechanisms that will be adopted in the elections and the announcement of results within 48 hours may enable the new parliament to hold its first session in the month of 12, Therefore, in one month, he can approve the budget, if things go according to what was planned.

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http://non14.net/public/images/large/8-1629986398.jpg

Today, Thursday, Finance Minister Ali Abdul-Amir Allawi revealed the value of the price of a barrel of oil in the 2022 budget, while hinting at the imposition of a new tax law in Iraq.


Allawi said in a press statement, "The price of a barrel of oil in the 2022 budget will be 50 dollars, indicating the possibility that OPEC will add 450,000 barrels to Iraq's oil production."

He added that "65% of the state budget goes to salaries," noting that "the delay in the payment of salaries was caused by the massive inflation in Iraq."


Allawi explained that "taxes are important in stimulating production and investment, and they are very few in Iraq, and they are not equivalent to 1% of the national income," noting that "the tax law will reconsider the issue of tax in Iraq and draw up a new policy and a new law."

And he added, "The Kurdistan region has not implemented its obligations regarding the payment of oil prices, and that the price of oil obtained by the region is above the equilibrium price by about 10 dollars."

The Minister of Finance pointed out that "the improvement in oil prices does not solve the financial distress quickly due to internal and external debts."

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2 hours ago, 64jaguar said:

 

I'm not sure it would show up in the 2022 Budget anyway jake21It's up to the CBI and the budget is just designed around what the value is now, Imo.. 

Sounds right to me.

All the same dinar amounts, just the value would change and adjustments done later.  Just think of it like a floating currency, they dont keep changing, subtracting or adding dollars, pesos yen everytime a value changes in the middle of the year.

Now is a good time for me.

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On 8/27/2021 at 4:58 AM, Wiljor said:

 "Iraq's Deputy Prime Minister and Finance Minister has reportedly said that he supports a floating     

   exchange rate for the Iraqi currency” 

*** It is now front and center DV, it’s not a question of if, it’s a question of when..!  

 

Right-on Wiljor ... keep the faith ... RON 

 

On 8/27/2021 at 9:21 AM, Laid Back said:

Agree with you my brother 😎

Yesterday's statement from ministry of finance“We started with correct reform work, starting with banks and customs, and we came out safely from the difficult economic situation." Today’s statement from ministry of finance; “Ali Abdul Amir Allawi confirmed on Thursday that he supports floating the currency in a flexible manner.”

 

Thanks Laid Back ... more confirmation..! :salute:RON 

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On 8/28/2021 at 2:21 AM, Laid Back said:

Agree with you my brother 😎

 

Yesterday’s  statement from ministry of finance;

“We started with correct reform work, starting with banks and customs, and we came out safely from the difficult economic situation."

 

Today’s statement from ministry of finance;

“Ali Abdul Amir Allawi confirmed on Thursday that he supports floating the currency in a flexible manner.”

 

 

Where there’s smoke 💨  there’s fire 🔥 


 

Go floating dinar

Go Purchasing power

Go time is now1

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 Baghdad: Hussein Thaghb
Finance Minister Ali Abdul-Amir Allawi stressed that the country's situation is described as sensitive and requires concerted efforts by all, in order to achieve serious reforms that distance the country from potential dangers, pointing out that cooperation is most intense with the Central Bank of Iraq with the aim of building a clear financial map. Allawi said during a meeting with a group of journalists: The budget for the year 2022 will be completed within 3-4 weeks and presented to the Council of Ministers, expecting to submit it to the next parliament.
 
And it will depend on the price per barrel of oil, $50, and it will be based on the current production level. With regard to the exchange rate and the decision to devalue the national currency, Allawi stated that {the exchange rate represents the external face of the economy, and the high exchange rate brings benefit to many economic sectors}, indicating that {the price when it affects the economy negatively and encourages the transfer and transfer of resources. On the outside, it is necessary to reconsider and this is what happened.”
He said, "The decision to devalue the currency came in order to create a competitive economy that encourages the work environment in the country," noting that "during the past six months, we have indicated an increase in demand for investment licenses in the sector."
 industrial.”
Allawi pointed out that {the increase in prices in local markets, and the percentage that exceeds the percentage of devaluation of the currency, came due to the increase witnessed in global markets, which coincided with the decision to reduce and the Corona pandemic, which had negative effects on the global economy as a whole.
He stressed, “We are moving towards offering treasury bonds for trading in the Iraqi Stock Exchange, and we expect a great turnout for them in the absence of ideal investment opportunities in the country,” noting that “Iraq’s revenues are large, but obligations are also wide, and there is an inflation in the number of employees that coincides with a lack of productivity
 employee.”
He said: {Reform of government performance and the economic system is inevitable, and far from it we cannot create an incubating environment for the economy}, pointing out that we have begun a real reform of government institutions, banks, customs and taxes, in order to manage 
Economy".
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2 hours ago, yota691 said:
He said: {Reform of government performance and the economic system is inevitable, and far from it we cannot create an incubating environment for the economy}, pointing out that we have begun a real reform of government institutions, banks, customs and taxes, in order to manage Economy".

 

Thanks yota691 ... a bit of a convoluted article ... more like excuses..! :tiphat:RON

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