“SDR’s, Kuwait, Float” – Thurs. PM TNT Thoughts/News 8-26-21

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TNT

Patty:
Can someone help please is the Kuwaiti Dinar be in the basket ?

MountainMole:
Patty, the GCR will effect every currency. There are various baskets based on what we’ve heard from TNT leadership. Every currency will be involved at some point…. its has not been said that it is in the first basket

The GCR is an action taken by the IMF to help bring financial stability globally. Each country’s currency value will be based on that country’s ability to support the new value based on its natural resources, gold, oil, minerals. This means that some currencies will increase in value and some will devalue. This is forcing countries away from fiat monies.

Mpeagle:
Patty… the Kuwait Dinar is currently $3 and change… about 3.85…. I would not look for them to be in an RV but float with the other Dinars when the IQN is RI.. Re instated…and then Re Valued in the world market. If the IQN comes out at over 15$$s it would definitly effect the Kuwait value… Rumor has the IQD or IQN at over $19 in the world market… but we will have to wait and see.

Chevy:
I kind of remember that Iraq would be about the same range as the KWD – that was some agreement that Kuwait would be within .50 or something like that. Also, I don’t remember Tony or Ray ever talking about the IQD going over $19 in a world market? Tony talked often about it floating up around $12 or so for a very short time and then settling down to agreed amount?

Yada:
Agreed Chevy, the strength of the dinar could withstand $19 but doubt the country would risk it and manage it at the RI rate of $3.71 or there about. Floating up for our exchanges and settling back to the RI rate.

Airam:
How does the Afghanistan situation affects dinar

Phantom809:
Afghanistan a horrible situation but it should not affect the RV.

Kaseyko1:
I’m hopeful to see something by the 1st; Iraq has been putting out some good news: appears SDRs were paid out, Iraq has declined the IMF loan since they can use their established exchange rate to finance themselves now & they are looking at having a managed float on their currency.

Tac1seaday:
What dose SDR’s stand for?

Kaseykp1:
Special drawing rights…. Special drawing rights are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund. SDRs are units of account for the IMF, and not a currency per se. They represent a claim to currency held by IMF member countries for which they may be exchanged.

Rightontime:
It seems like the Good Guys are one way or another still being stymied by the PTB. I’d like to see the breakthrough we’ve been hearing about for so long.

Kaseyko1:
I’ll second that.

Tishwash:
The Iraqi Finance Minister supports the floating of the currency

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 flotation 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.  link

Finance Minister: Iraq no longer needs an International Monetary Fund loan

Finance Minister Ali Abdul Amir Allawi confirmed, on Thursday, that Iraq does not need an International Monetary Fund loan, while revealing huge costs borne by the state at the level of several sectors.  

In response to a question by the “Nass” correspondent, during a press interview held at the Ministry’s headquarters, (August 26, 2021), the minister said that “one of the loans identified by the IMF was allocated to confront the Corona crisis,” noting that “negotiations with the Fund regarding the liquidity loan have been going on since The beginning of the year, and perhaps we will continue with them even after the next elections.”  

Allawi stressed, “The relationship with the International Monetary Fund is good,” noting at the same time that Iraq “no longer needs to borrow due to the rise in oil prices, as well as adjusting the exchange rate of the dollar.”  

The minister talked about a number of files related to the volume of public spending and the amount of cost borne by the state in certain sectors such as housing and energy.  

Allawi said, “The Basmaya project is very complex, as the executing company requests large amounts of money, but it does not implement some of its obligations,” explaining that “the project continues with continuous banking support, and it can be completed during this year.”  

6 million employees.

“It would have been better if it had been done differently, it is very expensive,” he added.  

And on the salaries of employees of the Kurdistan region, the minister said that “our position is neutral, professional and objective,” noting that “the size of salaries amounts to 200 billion dinars per month.”  

And he indicated that “the ministry’s policy does not stand against government employment, but we are against the loss of productivity in the state sectors,” attributing “the delay in the payment of salaries to the massive inflation in Iraq.”  

The minister revealed that the number of employees in Iraq is up to 6 million people, including all beneficiaries of government salaries.  

Oil prices..and OPEC  

On oil prices, the minister stated that “the price of a barrel of oil in the 2022 budget will be 50 dollars,” adding that “OPEC will add 450,000 barrels to Iraq’s oil production during the next year.”  

The minister stressed that it is not possible to “impose taxes in the absence of production,” explaining that “taxes are necessary and important in stimulating production and investment, and they are very few in Iraq, and there is a new tax policy that we will work on during the coming period.”  

He pointed out that “taxes in Iraq are not equivalent to 1% of the national income.”  

He also indicated, “The tax law will reconsider the issue of tax in Iraq and draw up a new policy,” stressing that “state resources in Iraq are used in an incorrect and improper manner.”  

Smuggled money.   

The minister touched on the file of smuggled funds, saying that “the money that was smuggled abroad in the previous regime was for the benefit of the state,” noting that “the value of Iraq’s property abroad is not equivalent to 5% of the volume of smuggled funds.”  

Allawi revealed that “the volume of smuggled sums exceeds $200 billion,” noting the need for “the economic, political and intelligence cooperation of the countries concerned to recover these funds.”  

He also revealed, “the launch of dialogue with some foreign countries and neighboring countries to return the smuggled money.” But he said that “huge amounts of that money has evaporated in the banks of the rest of the countries.”  

The minister stressed, “Iraq’s need for a clear policy and large funds for the purpose of returning the smuggled funds abroad.”  

Debt, electricity and recruitment.   

In the same context, the minister said, “Iraq’s foreign debt has reached 50 billion dollars, some of which is related to the Paris Club,” explaining that the high volume of debt has led to “the collapse of international oil prices.”  

Allawi added, “We are dealing with corporate capital visit issues, and we encourage Iraqi private companies to prove their worth.”  

Regarding the electricity file, Allawi revealed that “the electricity sector in Iraq costs the state more than 25 billion dollars,” noting that the size of the Ministry of Electricity’s employees alone rose by more than 100,000 employees, which raised the volume of spending.  

The minister also spoke about the compulsory conscription law, saying that “the law was previously presented and has not yet been officially discussed, and we do not know the position of political currents and parties,” noting that its implementation “costs the government more than 150 billion dinars.”  

“I don’t know what they want!”  

On the other hand, the minister was surprised by the repeated questioning by Parliament.  

Allawi said that he “received 7 requests for interrogation,” but he “does not know what they specifically want,” noting that some of the interrogation requests did not reach him officially.  

Allawi confirmed, “He went to Parliament more than 14 times between visits, meetings and requests for hosting.”    link

Source: Dinar Recaps

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