The Central Bank of Iraq launches a package of measures to improve the performance of transactions related to the dollar

[keylime]

On 12/24/2022 at 9:43 PM, Theseus said:

Really? The first to the 29th of January 2023? Let's look at a few items that have come out:

 

1) The fact that Iraq's CBI has stated they will be releasing 20,000 IQD notes at the end of 2023. Which blows the RV happening in January 2023 out of the water by itself. This is saying they are not removing the zeroes until after 2023. Second they are spending money on the design, plates and printing of the these notes. The 20,000 note also brings into line with most of the world's currency practices of 1, 5, 10, 20, and 50 notes. CBI has already said they are not going to print 100K notes.

 

2) The fact that Iraq's CBI has stated that they will be releasing coinage around 2026. 

 

3) The White Papers is the formula they are using to point to an RV between 2025, 2026, and 2027. As stated by several officials the rate will be this ways for years. Of course no one really knows except Iraqi officials in the CBI, the IMF and the World Bank. They will know before anyone else.

 

4) The GOI has yet to pass the Iraqi Oil and Gas Law, the HCL, and the implementation of Article 140.

 

5) The GCR will play a major role in the RV and whether or not the IQD will remain pegged to the USD. There is movement to unpeg the IQD from the USD after the RV stabilizes. Iraq history has depegged from Western currency before so it is not uncommon for Iraq to depeg from the USD.

 

6) Listen to what Blackrock is stating about the Central Banks next year on recession. Blackrock is stating that we are going to have a recession like any other because CBs are tightening up their policies rather than helping fight inflation. 

 

While there may, and I stress may, be movement in a positive direction, moving the rate back to the December 2020 rate,  it will not be a very large move as they, the CBI. will want to keep to the 2% rule the IMF set to get into Art 8.

 

MCP stands for Multiple Currency Practice, meaning a nation and it's citizens are using more than one currency for their internal transactions in their economies. Example using both the USD and IQD to purchase everyday goods and services. AT this time Iraq, even with the consolidation of the banks on who can sell the USD, is still employing MCP. A strong consternation for the IMF. While Iraqis may be getting paid in IQD, those same citizens are exchanging that for USD to increase their purchasing power.  

 

Be patient Iraq has turned the corner. The RV will happen, just not anytime in 2023.

An excellent analysis and perhaps it is better to think of this as a 3 to 6 more year plan and be pleasantly surprised if it hits before. Adam has always stated the HCL will trigger the RV so if that's the case, they've given themselves a six month window to pass it. Of course we've seen dates come and go but it seems to me there's a real and true desire by this administration to make it happen. 

As always Time will tell.

[JonnyV]

16 hours ago, Rochester said:

And she's hot. 🔥👩‍🚒🧯

 

I heard Meloni is full of baloney 

 

9 hours ago, Artitech said:

The end of MCP = dinar revaluation! JMHO 🤠

 

What is MCP?

 

[3n1]

19 minutes ago, JonnyV said:

 

I heard Meloni is full of baloney 

 

 

What is MCP?

 

 

multi currency practice ...... The cbi sells USD for iqd among their 32 or so banks im sure u know all this , iraq been pulling this scam since about 2003 or 2004 especially after they ran shabibi off its so tiresome .

cheers all the best johnnyv

[JonnyV]

1 minute ago, 3n1 said:

 

multi currency practice ...... The cbi sells USD for iqd among their 32 or so banks im sure u know all this , iraq been pulling this scam since about 2003 or 2004 especially after they ran shabibi off its so tiresome .

cheers all the best johnnyv

 

Thank you for the explaination.

[Dinarrock]

4 hours ago, keylime said:

An excellent analysis and perhaps it is better to think of this as a 3 to 6 more year plan and be pleasantly surprised if it hits before. Adam has always stated the HCL will trigger the RV so if that's the case, they've given themselves a six month window to pass it. Of course we've seen dates come and go but it seems to me there's a real and true desire by this administration to make it happen. 

As always Time will tell.

No his or hers analysis is not completely correct, JUST BECAUSE SOMEONE SOUNDS EDUCATED ON A FORUM DOES NOT MEAN THEY KNOW WHAT THEY ARE TALKING ABOUT!!!

 

This person Theseus seems to be knowledgeable and puts together his or her thoughts extremely well HOWEVER Theseus DOES NOT even know what they are referring to regarding the practice of MCP which they have stated Iraq must stop using! In a nut shell it is trading with different countries USING DIFFERENT EXCHANGE RATES that exceed more then 2% and spreads WHICH IS A NO NO!!

 

That is what they want Iraq to stop doing it has ZERO really to do with them using the dinar and dollar inside the country!!  The only thing Theseus is correct about is Iraq is required to stop using MCP but again people do some research even Adam stating that the HCL must be done and then we will see the RV is his own opinion and a guess..however he has been right so far..lol. Here you go a quick read direct from the IMF website on what MCP is!! I have been in this investment since 2005 and have stuff on a couple of laptops saved that I cannot access because they are so old..lol 

 

Iraq is NOT going to ever come on how and state when they are going to add significant value to their currency ever!! All we can do is watch what they are actually doing not so much what their bs media says but you get the jist you kind of have to figure out which articles are bs and what’s not and typically you don’t know that until after the fact when they actually implement something they said they were going to do! 

 

https://www.imf.org/en/News/Articles/2019/06/07/pr19203-imf-executive-board-reviews-multiple-currency-practices-policy-and-considers-reforms

[keylime]

29 minutes ago, Dinarrock said:

No his or hers analysis is not completely correct, JUST BECAUSE SOMEONE SOUNDS EDUCATED ON A FORUM DOES NOT MEAN THEY KNOW WHAT THEY ARE TALKING ABOUT!!!

 

This person Theseus seems to be knowledgeable and puts together his or her thoughts extremely well HOWEVER Theseus DOES NOT even know what they are referring to regarding the practice of MCP which they have stated Iraq must stop using! In a nut shell it is trading with different countries USING DIFFERENT EXCHANGE RATES that exceed more then 2% and spreads WHICH IS A NO NO!!

 

That is what they want Iraq to stop doing it has ZERO really to do with them using the dinar and dollar inside the country!!  The only thing Theseus is correct about is Iraq is required to stop using MCP but again people do some research even Adam stating that the HCL must be done and then we will see the RV is his own opinion and a guess..however he has been right so far..lol. Here you go a quick read direct from the IMF website on what MCP is!! I have been in this investment since 2005 and have stuff on a couple of laptops saved that I cannot access because they are so old..lol 

 

Iraq is NOT going to ever come on how and state when they are going to add significant value to their currency ever!! All we can do is watch what they are actually doing not so much what their bs media says but you get the jist you kind of have to figure out which articles are bs and what’s not and typically you don’t know that until after the fact when they actually implement something they said they were going to do! 

 

https://www.imf.org/en/News/Articles/2019/06/07/pr19203-imf-executive-board-reviews-multiple-currency-practices-policy-and-considers-reforms

Thank you for this. It takes a village sometimes to keep up with all the webbings this thing is made of. I, too, have a couple old laptops with stored info that I just don't have the time to dredge it up. In any case, yes, I do feel the HCL could very well be the trigger but will it be immediate like some believe or will it take several weeks, months, etc. Maybe they pass it and then three months to implement it. Who knows. I just want the HCL to be passed and cross that off the list finally. Then we will see what happens.

[3n1]

great read and link Rock .... 

[Dinarrock]

9 minutes ago, keylime said:

Thank you for this. It takes a village sometimes to keep up with all the webbings this thing is made of. I, too, have a couple old laptops with stored info that I just don't have the time to dredge it up. In any case, yes, I do feel the HCL could very well be the trigger but will it be immediate like some believe or will it take several weeks, months, etc. Maybe they pass it and then three months to implement it. Who knows. I just want the HCL to be passed and cross that off the list finally. Then we will see what happens.

No worries and maybe I came off a little harsher then I should have but I have seen all kinds of gurus or no it all’s looking to make themselves or lives feel more important on many different forums. In my journey thus far I have come across a few really knowledgeable people which either chose to not post anything more or possibly moved on who knows. But one thing I do know is the money I spent for then many many millions of dinar that I accumulated over the years is long spent and what I was willing to lose if ever this thing goes south somehow. But I still firmly believe that one day Iraq will actually RV their currency but going by once again another paper saying it won’t happen for another 3 to 5 years and taking that as gospel is pure nonsense! This is seriously the 3rd or 4th similar thing proposed n some form or paper on why or why not they can’t add value in a specific amount of time..lol… is Shabbbi’s plan still what’s going to happen who knows that is now a 10 year old plan!! I have basically calmed myself into believing it will happen when it happens and if it doesn’t it not worth stressing or wasting much more time about when and if it will ever happen…that’s how I deal with it anyway!!

[screwball]

2 hours ago, Dinarrock said:

No his or hers analysis is not completely correct, JUST BECAUSE SOMEONE SOUNDS EDUCATED ON A FORUM DOES NOT MEAN THEY KNOW WHAT THEY ARE TALKING ABOUT!!!

 

This person Theseus seems to be knowledgeable and puts together his or her thoughts extremely well HOWEVER Theseus DOES NOT even know what they are referring to regarding the practice of MCP which they have stated Iraq must stop using! In a nut shell it is trading with different countries USING DIFFERENT EXCHANGE RATES that exceed more then 2% and spreads WHICH IS A NO NO!!

 

That is what they want Iraq to stop doing it has ZERO really to do with them using the dinar and dollar inside the country!!  The only thing Theseus is correct about is Iraq is required to stop using MCP but again people do some research even Adam stating that the HCL must be done and then we will see the RV is his own opinion and a guess..however he has been right so far..lol. Here you go a quick read direct from the IMF website on what MCP is!! I have been in this investment since 2005 and have stuff on a couple of laptops saved that I cannot access because they are so old..lol 

 

Iraq is NOT going to ever come on how and state when they are going to add significant value to their currency ever!! All we can do is watch what they are actually doing not so much what their bs media says but you get the jist you kind of have to figure out which articles are bs and what’s not and typically you don’t know that until after the fact when they actually implement something they said they were going to do! 

 

https://www.imf.org/en/News/Articles/2019/06/07/pr19203-imf-executive-board-reviews-multiple-currency-practices-policy-and-considers-reforms

well said....

[screwball]

this year we will see countries stop using USD for Oil, the Petrodollar is no more. Some bold 2023 predictions by the former russian   former president Dimitri Medvedev, now head of the Russain Security Council he has made some interesting predictions, go to his most recent tweets his top 10, pay attention to the stuff about the USD Putin as threatened Biden in selling oil for gold which will drive the price up to 3000-4000 per ounce.

 

this is interesting...https://rumble.com/v20h3to-trumped-how-donald-j-trump-took-over-the-federal-reserve-bank-fed.html.

 

then watch this  https://rumble.com/v22c5bm-cbdcs-what-weve-seen-is-everybody-has-a-friction-point-of-cbdc-int.html     pay attention to the asian dude

 

also lets  not forget that Putin as from Feb 1 2023 to July 2023 has stated then no country that deals with the USD in trade will get oil and gas, this will drive the oil ans gas price to $150 per barrell and end OPEC and the Petro Dollar.....link this to Dmitry Medvedevs predictions for 2023 and we are in trouble.

Edited December 28, 2022 by screwball
spelling

[screwball]

lets also remember the the ruble has gone up 30% since sanctions and announcing they selling oil in rubles and backing their currency with gold.

Edited December 28, 2022 by screwball

[keylime]

7 hours ago, screwball said:

lets also remember the the ruble has gone up 30% since sanctions and announcing they selling oil in rubles and backing their currency with gold.

I think when analyzing all of these threats and possibie scenarios, we have to remember the shadow cabal that is the elite of the elite are much darker and much more evil than any of us could ever know. They are bigger than one leader of any country, including a dictator. So these leaders can say, we are going to do this, and the Cabal laughs and counteracts it before it can even get started. If the evil elite continues to want the US dollar to be the money of the earth, it will be and no single person or entity is going to stop it. These people write the rules for everyone else and then break them when it benefits themselves, and then rewrites them for everyone else again. I mean, we are talking about evil personified with these people, with no conscience to getting their way no matter who it hurts.

 

[md11fr8dawg]

8 hours ago, screwball said:

we are in trouble.

As long as we keep voting the Rats in power we will ALWAYS be in trouble or cease to exist as the beacon of freedom in the world.

[Artitech]

Thanks for all of the thoughts about this investment! In just 3 short days the window of opportunity will raise again! 2023 could be our year! I like to think it will be!! Like I say, we will know by the middle of March 2023 if we are in for another dead year or not! Which  if, this window closes with nothing but the same ole Bull$h!+, coming out of that $h!+ hole. I’m going to make some moves even if is wrong! Me myself and I are not going to play this game anymore! I’ve made my mind up! I’m going to keep a little IQD, just in case something happens in my life time. But this is where this old cowboy takes another trail south! It’s been fun but I have had all the hopiem I can take! There is a lot of great information and moves being made in Iraq! Iraq has made all the necessary moves for the IQD to RV! This is a known fact. Now we are in the phase of when are they (CBI) going to make a rate change!!! PERIOD! We will see!  I do think it’s interesting that the all seeing Eye, would make a comment about something big happening in the 3 week of January 2023! Is this something that only a few people know and just gave everyone a shot of hopiem! The good news is, we are in days and not year’s, of a final count down, one way or another! We will see! As Mark Chestnut says Time keeps marching on! Maybe someone would post a link to that great  tune! As we get ready to turn the Calendar!!!! Happy and blessed New Year to everyone! JMHO!🤠

[Artitech]

9 minutes ago, md11fr8dawg said:

As long as we keep voting the Rats in power we will ALWAYS be in trouble or cease to exist as the beacon of freedom in the world.

We can not beat voter fraud, the DemoRats have the play down to a science! Till a about 6 states do something to stop it, I’m afraid the United States is lost forever! Till some brave people decide to take a stand,  it’s an every man for himself situation! When they can take President Trump out, they can take out anyone that they want to and step on them like a Pi$$ ant! JMHO 

[Dinarrock]

2 hours ago, md11fr8dawg said:

As long as we keep voting the Rats in power we will ALWAYS be in trouble or cease to exist as the beacon of freedom in the world.

That’s the problem we ARE NOT VOTING IN THE RATS!! They keep stealing it over and over America has become an absolute joke!! So Keylime is correct all the corrupt will continue to do whatever they want whenever they want. No I don’t believe the US dollar is going anywhere either this finds all the corruption! Only GOD can intervene and change what he wants it’s far too late for us to change anything the corrupt are the only ones that have this thing down to a science!

[cutter73]

3 hours ago, md11fr8dawg said:

As long as we keep voting the Rats in power we will ALWAYS be in trouble or cease to exist as the beacon of freedom in the world.

@md11fr8dawgThere's NO WE... if you're doing it; STOP LOL  I'm with @Dinarrock😉

[Theseus]

On 12/26/2022 at 6:21 PM, screwball said:

What still no formulae…..you can’t product it because it doesn’t exist

Why? Because you say it doesn't because you are not going to any research into it? 

 

The White Papers exist, were implemented  and to say it doesn't not only shows that you lack all credibility in this discussion. 

 

Try again. You come with no facts.

[Theseus]

On 12/26/2022 at 6:21 PM, screwball said:

What still no formulae…..you can’t product it because it doesn’t exist

Why? Because you say it doesn't because you are not going to any research into it? 

 

The White Papers exist, were implemented  and to say it doesn't not only shows that you lack all credibility in this discussion. 

 

Try again. You come with no facts.

[Theseus]

On 12/26/2022 at 6:21 PM, screwball said:

What still no formulae…..you can’t product it because it doesn’t exist

Since you fail to do research let me repost this once again straight from GOI website:

 

The White Paper for Economic Reforms: vision and key objectives

 

 22 Oct 2020 - 2:50 pm

 

The Iraqi government has formally adopted the White Paper for Economic Reforms prepared by the Crisis Cell for Financial and Fiscal Reform.

The White Paper seeks to put Iraq’s economy on a path that allows the state to take appropriate steps in the future to develop it into a diversified, dynamic economy. Dr. Ali Allawi, Deputy Prime Minister and Minister of Finance

The White Paper is a comprehensive programme that sets out a clear roadmap to reform the Iraqi economy and address the accumulated, decades-old serious challenges that confront it.

Iraq’s Deputy Prime Minister and Minister of Finance, Dr. Ali Allawi said that the White Paper seeks to put Iraq’s economy on a path that allows the state to take appropriate steps in the future to develop it into a diversified, dynamic economy that creates opportunities for citizens to live a decent life.

And although the current severe fiscal crisis that Iraq is going through is related to the recent sharp decline in oil prices and to the repercussions of the Coronavirus pandemic, the White Paper makes it clear that the causes of Iraq’s economic and financial woes date back several decades.

The White Paper identifies the expansion of the role of the state as a key cause of the crisis.

The roots of the crisis

The White Paper provides a detailed outline of the factors that have distorted the Iraqi economy, undermined its capacity to provide a decent life for large number of Iraqis, and its failure to keep pace with the economic developments that the world has witnessed.

The expansion of the role of the state

The White Paper identifies the expansion of the role of the state and emergence of a command economy in Iraq as a key cause of the crisis.

From the nationalisation of vital economic sectors in 1970s, to the commandeering of all economic levers by the state to support the war effort in the 1980s, through the period of  sanctions imposed on Iraq in the 1990s, these shocks, as well as the absence of strategic planning, mismanagement, maladministration, patronage and misguided political ideology, all led to an expansion of the role of the state in all aspects of economic life in Iraq.

The Iraqi economy continued to be directed by the state after the events of 2003 because of the failure of the new political system to create a free and diversified modern economy as outlined in Iraq’s Constitution, and instead continued to rely on the state as the almost only driver of economic activity in the country.

The expansion of the role of the state, and the associated increase in the number of those employed in the public sector and the cost to Iraqi exchequer of their salaries and pensions, came at the expense of the government’s ability to invest in basic infrastructure in Iraq.

To illustrate the point, the White Paper points out that from 2004 to 2020, state expenditure on the salaries of civil servants and on public sector pensions increased by 400% in real terms, as the total number of public sector workers during the same period increased by threefold.

The cost of salaries and pensions of public sector workers is expected to be around 122% of Iraq’s oil revenue in 2020. The White Paper for Economic Reforms

And between 2006 and 2018, average public sector salaries increased by 134%, more than the increase in labour productivity, which rose by only 12%, or the cost of living, which rose by 28% during the same period.

Over the past 17 years, government spending on the salaries of state employees, and on public sector pensions became the fastest growing expenditure item in Iraq’s successive federal budgets during this period.

There are currently around 4,500,000 public sector employees and 2,500,000 pensioners.

Decline of the private sector

The expansion of the state’s role, in addition to the complex administrative system and the state’s weakness in imposing the rule of law, the militarisation of society, and the influence of non-governmental actors in public institutions, led to the decline of the Iraqi private sector.

With the exception of a number of small and medium-sized companies operating in the oil and telecommunications sectors, and very small companies operating in the fields of trade, retail, transport, construction, hospitality and textiles, there is almost a complete absence of private sector companies in manufacturing.

In addition, most of the larger private sector companies depend on providing services to the state and on government contracts.

The White Paper also identified other factors that led to the deteriorating economic situation in Iraq is, most notably:

• The collapse of oil revenues
• The impact of Covid-19
• Mismanagement and lack of planning
• The weakness of financial institutions
• The absence of modern coherent systems for managing state revenues
• An ineffective and outdated banking sector
• Complex and antiquated government procedures
• Destruction of infrastructure and the costs of the war against Daesh terrorists

Two strategic goals 

The White Paper identifies two overarching strategic objectives. The first is to initiate an immediate reform programme to address the budget deficit to create a fiscal space to give time for the process of implementing the other wider reforms over the medium term.

The second objective is to put the economy and the federal budget on a sustainable path, after which Iraqis can decide and choose the economic direction of the country.

The White Paper anticipates that the short and medium-term objectives and associated reforms will require between 3 to 5 years to implement.

The reform pillars

The White Paper identified five key pillars for the reform programmes:

1- Achieving sustainable financial stability

Key reforms include:

• Reducing the deficit from 20% to 3% of GDP and expenditure on salaries from 25% to 12.5% of the federal budget
• Collecting electricity tariffs from all users based on the real price of fuel on global markets
• Recovering and returning Iraq’s smuggled and stolen money
• Increasing revenues from customs and taxes
• Reforming Iraq’s Pensions Fund and move to gradually end federal budget support
• Reforming financial management systems
• Reviewing the current exchange rate of the dollar against the dinar

2- Implementing strategic reforms and creating sustainable job opportunities

Key reforms include:

• Modernising and rehabilitating the financial sector
• Modernising and rehabilitating the banking system, supporting the development of private banks, reforming government banks and introducing and activating the Core Banking System in Al-Rafidain and Rasheed Banks
• Expediting the development of e-banking services
• Establishing new trading markets, such as a commodity market and a currency exchange market (Forex)
• Supporting the sectors that drive the economy, such as agriculture, oil and gas
• Introducing a private sector support fund, simplifying procedures, and providing other non-financial aid
• Creating job opportunities in the private sector and supporting small and medium enterprises
• Adopting a national strategy for education and training that links educational outcomes with the future need for the labour market

3- Improving basic infrastructure

Building Iraq’s digital infrastructure is a key aim of the White Paper.

Key reforms include:

• Increasing the effectiveness and improving the performance of all parts of Iraq’s electricity sector
• Developing Iraq’s digital infrastructure, including the introduction of advanced technology (4G) at the beginning of next year, and preparing for the introduction of (5G) technology
• Modernising the legal and regulatory framework of the transport sector, and encourage private investment in transport
• Developing industrial cities and free zones in Iraq

4- Providing basic services and protecting vulnerable groups during and after the reform process

The reforms aim at establishing a unified and financially sustainable pension system for all Iraqis whether they are working in the public, private, cooperative or mixed sector. The White Paper for Economic Reforms

Key reforms include:

• Improving water supply for both drinking and irrigation and complete sanitation projects and networks
• Building 1,000 new schools during the period of the reform programme
• Reforming the social security system
• Establishing a unified and financially sustainable pension system for all Iraqis whether they are working in the public, private, cooperative or mixed sector
• Completing and implementing the draft health insurance law to ensure that all Iraqis have access to essential health services

5- Improving governance and introducing changes to the legal framework to enable institutions and individuals to implement reforms

• Reviewing and amending the official guidance in relation to government contracts
• Introducing e-governance systems to strengthen oversight of government contracting and the collection of taxes and customs
• Working with specialist investigative international organisations to return the large sums of money smuggled out of Iraq
• Introducing an electronic governance system in the field of government contracting and tax and customs collection
• Completing the project establishing the National Information Centre to facilitate the introduction of government e-services to citizens, and automate the procedures for obtaining key documents  such nationality and passports and accessing pensions and social security
• Introducing electronic signature and transactions throughout the public administration system and phasing out paper transactions

 

A detailed implementation plan of White Paper will be published later to outline the required process, identify key stakeholders and establish timelines and monitoring mechanisms.

[Theseus]

Iraqi government to begin implementation phase of the White Paper for Economic Reform

 

 15 Feb 2021 - 3:55 pm

 

The Iraqi government is preparing to begin the implementation phase of its reform programme known as the White Paper for Economic Reform.

This phase will focus on the implementation mechanisms and on the fulfilment of the objectives and the vision outlined by the White Paper.

The implementation phase consists of:

• Putting in place governance, oversight, monitoring and evaluation mechanisms to ensure that the reform process is administrated and managed effectively under the direction and guidance of strong and competent leadership which will have a direct link to the Prime Minister, with the aim of equipping the implementation team with the necessary authority to carry out the reform programme, providing vigorous oversight of the implementation process, and ensuring coordination between different governmental institutions

 

• Translating the vision of the White Paper for Economic Reform into a practical programme for delivering 64 projects and for ensuring their implementation in an integrated and coherent manner by specifying detailed procedures for each project, setting a specific timeline for progress and identifying the state entity which will be responsible for carrying out each project

 

The Iraqi government adopted the White Paper for Economic Reform prepared by the Crisis Cell for Financial and Fiscal Reform in October 2020.

The White Paper is a comprehensive programme that sets out a clear roadmap to reform the Iraqi economy and address the accumulated, decades-old serious challenges that confront it.

The White Paper identified two overarching strategic objectives. The first is to initiate an immediate reform programme to address the budget deficit to create a fiscal space to give time for the process of implementing the other wider reforms over the medium term.

The second objective is to put the economy and the federal budget on a sustainable path, after which Iraqis can decide and choose the economic direction of the country.

The White Paper anticipates that the short and medium-term objectives and associated reforms will require between 3 to 5 years to implement.

The White Paper for Economic reform enjoys the support of the international community as reflected by the establishment of the Iraq Economic Contact Group (IECG) whose mission is to provide the support needed for the economic reform process in Iraq within the framework of the White Paper. The IECG includes, in addition to Iraq, the G7 group of industrialised countries, the World Bank, the International Monetary Fund, and the European Union.

[Theseus]

Cabinet approves the White Paper for economic reforms

 

 14 Oct 2020 - 12:30 pm

 

The Cabinet held its weekly meeting on Tuesday under the chairmanship of Prime Minister Mustafa Al-Kadhimi.

At the start of the meeting, the Minister of Health presented a detailed report on the latest health developments in Iraq and the government efforts to contain the spread of Covid-19 and reduce infection-rates throughout the country. He also  outlined the ongoing national health awareness campaign advising citizens to continue to remain vigilant and follow official health guidance.

The White Paper

The Deputy Prime Minister and Minister of Finance presented the final report from the Emergency Cell for Financial Reform in Iraq which outlined a number of key measures to tackle the immediate financial crisis facing Iraq.

The Deputy Prime Minister and Minister of Finance then briefed the Cabinet on key elements of the White Paper for economic and financial reforms which aim to tackle the dangerous and serious problems facing the Iraqi economy which have accumulated over many years.

Following extensive discussions, the Cabinet voted to approve the White Paper.

Other decisions

The Cabinet discussed other items on its agenda, and decided to:

• Authorise the Ministry of Transport to enter into negotiations with the Alstom-Hyundai consortium of companies regarding the Baghdad suspension railway project
• Direct all ministries and government agencies to suspend the collection of principle debts owed by farmers, and to cancel all late payment fees, with the repayment of debts becoming due again once farmers have received their payment from the government
• Request farmers who have sold strategic crops (wheat, barley, rice and corn) to government agencies to open accounts at the Agricultural Bank
• Direct the Ministries of Trade and Agriculture to release the money owed to farmers to their accounts at the Agricultural Bank

[Theseus]

 

[Theseus]

FROM "IRAQ 2020 ARTICLE IV CONSULTATION—PRESS RELEASE; STAFF REPORT; AND STATEMENT BY THE EXECUTIVE DIRECTOR FOR IRAQ" FEBRUARY 2021 PG 3

 

 

Quote

 

Exchange Arrangement

 

Iraq’s de jure and de facto exchange rate arrangements are classified as a conventional peg arrangement. The Central Bank Law gives the Board of the Central Bank of Iraq (CBI) the authority to formulate exchange rate policy. Effective December 20, 2020, the official exchange rate was set at ID 1,460 per U.S. dollar including the Central Bank commission (ID 1,450 plus ID 10 (fees)) according to the closing prices of the daily bulletin of gold & main currencies published on the CBI website (www.cbi.iq). Previously, on May 24, 2018, the official exchange rate was set at ID 1,190 per U.S. dollar including the Central Bank commission (ID 1,182 plus ID 8 (fees)).

 

The CBI provides foreign exchange at the official exchange rate for permissible transactions through its daily auctions (allocations), establishing a peg. However, because certain transactions are excluded from access to the CBI auctions, many transactions take place at parallel market exchange rates. The CBI publishes the daily volume of the auction allocation on its website.

 

Iraq continues to avail itself of the transitional arrangements under Article XIV, Section 2 but no longer maintains any exchange restrictions or multiple currency practices subject to Article XIV, Section 2, and currently maintains one multiple currency practice (MCP) subject to Fund approval under Article VIII, Section 3.

 

The MCP arises from the lack of a mechanism to ensure that the exchange rate at the CBI foreign exchange window and the market rates (retail exchange rates of commercial banks and exchange bureaus for the sale of foreign currency from sources other than the CBI foreign exchange window) do not deviate from each other by more than 2 percent.

 

 

 

 

[Theseus]

Dinar-Dollar exchange rate to be fixed for five years: parliamentary finance committee

15-08-2021

Dilan Sirwan@DeelanSirwan

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IRAQ

File photo: Bilind T. Abdullah/Rudaw

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ERBIL, Kurdistan Region — The dinar-dollar exchange rate will be fixed for the next five years, a member of the Iraqi parliament’s finance committee told state media on Sunday.

“The exchange rate will remain at this rate for the next five years,” Naji al-Saidi told state media.

According to Saidi, the government had three main reasons to devalue the dinar: to reduce deficit in the budget, to increase reserves, and to make domestic goods more competitive in markets.

In the 2021 budget law, the Iraqi parliament voted on setting the price of dinar at 1,450 dinars per dollar.

Iraqi state media announced on December 19 that the Central Bank would set the dollar at 1,470 IQD for the public.

The devaluation of the Iraqi dinar is a step towards reform and creating a “financial balance” that will revive the economy, Iraq’s Minister of Finance said at the time.

A member of the finance committee said in January that the devaluation will save the country around 12 trillion dinars in 2021.

The devaluation of the dinar struck the public hard as government employees get paid in dinar, and they would be able to afford less with their salaries given that many imported goods are paid for in dollars.

The spokesperson for Iraq’s Ministry of Planning told state media in April that the devaluation had caused inflation to increase by around 5 percent and that primary poverty indicators rose between 26 and 27 percent.

Iraq has been gripped by an economic crisis, exacerbated by a drop in oil prices and the global coronavirus pandemic, which has left many unemployed. The devaluation of the dinar only added to the financial burden on people.

The country has almost exclusively relied on oil revenues since the US invasion in 2003. In June last year, Iraqi Prime Minister Mustafa al-Kadhimi stated that the country currently gets 94.7 percent of its income from oil sales, a business that is also carried out in dollars.

Iraq’s poverty rate stood at about 20 percent before the coronavirus pandemic – but in November, the World Bank Group estimated the poverty rate in Iraq will increase by seven to 14 percent, calling on Baghdad to introduce urgent economic reforms.

At the time the devaluation was decided, influential Shiite cleric Muqtada al-Sadr voiced his skepticism of the measure’s ability to alleviate public suffering.

“The Central Bank and all other banks are prisoners of corruption and corrupters. The government and parliament must seek specialized methods to end this and liberalize it immediately. It is not,” Sadr tweeted on December 19.

Iraqi demonstrators took to Baghdad’s protest epicentre Tahrir Square on December 21 to air their discontent after the government decision to devalue the country's currency.