Samson » September 6th, 2021
Spokesperson for the Prime Minister: The exchange rate will be fixed in the 2022 budget and there will be no change in it
6th September, 2021
The spokesman for the Council of Ministers, Hassan Nazim, confirmed, on Monday, September 6, 2021, that the dollar exchange rate will be fixed in the draft financial budget law for 2022 and there will be no change in it.
Nazim said in a press statement, which was followed by “The Obelisk”, that increasing the dollar exchange rate is an idea that has been discussed for years, and the previous government did not dare to take this step because of the risks and controversies surrounding it, and Al-Kazemi’s government was bold to take this decision because it is in the interest of the Iraqi economy, and in the economic vision. Reform of the Ministry of Finance, as this idea was presented within the reforms of the white paper and won acceptance and extensive discussion.
And he continued: The government always takes steps to support goods and materials whose prices have risen, and has developed solutions and taken decisions regarding them. The idea of the dollar exchange rate is not retracted by this government, and I do not think any 2022 budget will change this price, since this government is the one who will set the budget for the next year.
He pointed out that the government at one period was not reassured of its ability to pay the salaries of employees, but with its policy it crossed this crisis and the increase in oil prices came as a catalyst, and even if oil prices increased, there would be major problems unless there was a wise management of the financial resources coming from export raw.
He pointed out that there is a kind of rise in the foreign reserve, and there is no abundance as a result of the accumulated deficit, and therefore any financial increase through which the government will try to fill the deficit with it, and we are not talking about existing surplus funds that we park here and there, but rather we are trying, within the white reform paper, to control the economy and make it dynamically developed.
MilitiaMan » September 6th, 2021
A spokes person saying he thinks the exchange rate that harms the citizens is going to be fixed..? I think he his misleading when he says that. Notice he says
“unless there was a wise management of the financial resources coming from export raw”, and “rather we are trying, within the white paper reform paper, to control the economy and make it dynamically developed.
1190 nor 1460 was able to make it dynamic. This piece is at best lousy propaganda. Then again, it says unless there is wise management of the financial resources from export raw.” Well the white papers are not about a program rate.. imo.. Never were to be either.. imo.. They are about becoming a dynamic market and private sector based economy.. Be careful how things read.. imo ~ MM
Samson » September 6th, 2021
Parliamentary Finance : 50% of the articles of the 2021 budget have not been implemented
6th September, 2021
Today, Monday, the Parliamentary Finance Committee confirmed that there are several articles in the country’s general budget for the year 2021 that have not been implemented so far, while noting that the appeals submitted by the government concern only five articles.
A member of the committee, Jamal Cougar, told the “National News Center” website, “Parliamentary finance, pending the resolution of the appeals submitted by the government to the Federal Court, with articles (8, 12, 4, 52, 50), within the 2021 budget law, including what concerns The petrodollar fund and the increase in the prices of agricultural crops.
And Cougar stated, “The resolution of the appeals by the Federal Court, during the coming days, cannot be considered a gain for the government, because the House of Representatives has developed an alternative to these articles in the event that they are challenged,” stressing that “50 percent of the articles of the current year’s budget have not been implemented.”
The Council of Ministers had earlier authorized Prime Minister Mustafa Al-Kazemi to file an appeal with the Federal Court on some items of the federal budget for the 2021 fiscal year. LINK
MilitiaMan » September 6th, 2021
Lets see if the appeals get resolution this week.. The appeals will need to be sorted prior to any 2022.. imo The coming days could be at anytime.. imo ~ MM
Samson » September 6th, 2021
Millions of dollars.. Iraq and Syria are about to sign export contracts
6th September, 2021
A number of Syrian and Iraqi industrialists expected, with the conclusion of the “Made in Syria” export exhibition, specialized in the field of clothing and textiles, that export contracts with Iraqi companies will be signed soon. These contracts are expected to be worth millions of dollars, giving new impetus to the Syrian textile industry, which has suffered during the war years.
In a statement to the Syrian newspaper, Al-Watan, the Iraqi merchant, Muhammad Al-Rubaie, confirmed that the Syrian products are very popular and have a good reputation for their quality and the right price, explaining that the exhibition for them in Iraq is a window to open new horizons of joint cooperation between Syria and Iraq in the field. Commercial and industrial, and that this exhibition was one of the most important exhibitions, as many contracts were signed with Syrian industrialists worth millions of dollars.
Al-Rubaie stressed that “the Syrian product is a window for us to the neighboring countries. The Iraqi trader demanded that some difficulties and restrictions be overcome and the procedures that hinder the movement of trade between the two countries be removed, because the Syrian markets are the lifeblood of the economic movement.”
In turn, the head of the Syrian Garment and Textile Exporters Association, Ragheed Al-Halabi, confirmed that the exhibition is “a step to advance the Syrian economy and rebuild the Syrian textile industry and launch it towards export markets so that Syria can regain its position strongly in the export markets as it was previously, but the most important concern for exporters is to control prices. Exchange”.
Al-Halabi pointed out that this season, good contracts were signed at the exhibition, “and we noticed the industrialists’ pleasure by signing contracts for export, especially since shipping has become expensive for countries such as China and other countries.” Al-Halabi mentioned that the Arab markets are open to Syrian products from the widest of doors, and there is an intention and continuous work to establish a specialized exhibition of clothes “Made in Syria” in many Arab countries, and the beginning may be in Libya.
It is noteworthy that the exhibition “Made in Syria”, organized by the Federation of Syrian Chambers of Industry in cooperation with the Association of Syrian Exporters, was held on the grounds of the exhibition city in Damascus with a large participation of 180 companies, and the participation of about 1,000 businessmen, traders and industrialists who specialize in the fields of clothing and products Textiles from different countries. LINK
Total: $10 billion in the company’s investments in contracts signed with the Iraqi government
6th September, 2021
The French company, Total Energies, said today, Monday, that the total value of its investments in the projects signed yesterday with the Iraqi government for the optimal investment projects for associated gas and the development of oil fields is 10 billion dollars.
These agreements mark the company’s return through the front door to Iraq, the country in which Total was born in 1924, said Total Chairman and CEO, Patrick Boiani.
Boyani added: “Our ambition is to help Iraq build a more sustainable future, by developing the country’s natural resources, obtaining electricity through more sustainable use, reducing gas flaring that generates air pollution and greenhouse gas emissions, managing water resources and developing solar energy.”
For his part, Iraqi Oil Minister, Ihsan Abdul-Jabbar Ismail, said that Total Energy will invest up to $10 billion in building gas and oil facilities, water injection and solar energy during the first years of the gigantic integrated gas project, in the largest investment step in the country’s energy sector. The Minister of Oil added, through his official account on “Twitter”, that it will spend about 27 billion dollars cumulatively during the life of the project.
Yesterday, Sunday, the signing ceremony of the umbrella agreement for optimal investment projects for associated gas and oil field development , which includes three contracts between the Iraqi Ministry of Oil and the French Total Company, and the fourth contract for the solar energy project between the Ministry of Electricity and the French Total, under the auspices of the Iraqi Prime Minister, Mustafa Al-Kazemi. .
The total value of the four projects is $27 billion, while the total return on profits during the contract period is $95 billion, calculating the price of a barrel of $50.
Total Energy in Iraq began its activities in the 1920s with the discovery of the Kirkuk field. The company currently owns a 22.5% stake in the Halfaya oil field, which will produce approximately 20,000 barrels per day in 2020. Total sells lubricants in Iraq through distributors in the local retail market, according to the company’s statement. LINK
The coming months… The first specialized exhibition for opportunities and community support will be held at the Baghdad Fair
6th September, 2021
The General Company for Iraqi Fairs and Commercial Services at the Ministry of Commerce announced, on Monday, that it will organize the first specialized exhibition for opportunities and community support during the month of next October, under the auspices of the Minister of Trade, Dr. international.
The general director of the company, Sarmad Taha said, in a statement received / scales News / copy of it, “this exhibition aims to support various segments of society and offer investment opportunities and highlight the role of the Ministry of Commerce in the provision of services to citizens through the participation of all departments and its affiliated companies In cooperation and coordination with the private sector.
Saeed added, “This exhibition aims to attract local, Arab and foreign companies, as it is a comprehensive international exhibition, a major economic event, and an important step towards achieving economic integration, bringing major international companies and investors, and moving the wheel of the Iraqi economy.”
He explained, “The exhibition is a great opportunity for the participating companies to display their products in the Iraqi market, which is considered one of the most promising markets, in addition to opening up to Iraqi businessmen and merchants to obtain exclusive agencies from these companies.”
And he indicated, “This exhibition provides the possibility of concluding direct contracts with the participating discreet companies in accordance with the controls and powers. It also contributes to presenting new and exclusive offers and creating investment opportunities available by the ministry’s companies during the duration of the exhibition,” noting that “spaces will be granted to the participants (free of charge) on that the participating companies bear the fees for installing their own decoration and the rest of the other expenses.” LINK
Reforming the private banking sector according to the central bank’s methodology stimulates the economy
6th September, 2021 by Samir Al-Nusairi
Several months ago, the government issued the white paper, which is the roadmap for the desired macroeconomic reform for the coming years
The white paper, on pages 56 and 57, identified the main objectives for reforming the banking sector in the medium and long term between 3-5 years, and it is in fact an accurate diagnosis of problems that have already been diagnosed.
By the Central Bank and the World Bank, and it has already developed solutions and urgent and strategic mechanisms for it, as is clear in the Central Bank’s strategy (2016-2020) and strategic banking projects for the years (2019-2023). The paper focused on the basic objectives of private banking reform, as follows
First – Pave the way for private banks to take their role as levers of the economy and end the role of government banks as an arm of bank financing
Second – Addressing defaults in banks, the forced merging of troubled banks, and restoring confidence with the public
Third – Providing the appropriate environment to encourage banks to lend to stimulate the economy. Practicing the real business and not relying entirely on the currency window, guarantee fees and other banking fees
Fourth – Completion of the application of international accounting standards (IFRS) and the development of banking work using modern banking techniques
Therefore, the reform goals were based on detailed diagnoses of the current problems and obstacles that banks suffer from, which stand in the way of achieving the goals of reform. Since the issuance of the white paper, the Central Bank has begun to take measures to reform the banking sector since November of last year, according to its plan based on its strategy for monetary policy applications for that. The Bank issued lending initiatives to stimulate the economic cycle and activate the financing of small, medium and housing projects and to move at a confident pace to move the banking business from the banking role to the developmental role
The urgent procedures and solutions for banking reform can be identified as I see them as follows
First – making decisions on financial policy to restore balance between government banks and private banks in terms of capital, activity, and tasks, and focus on starting the structuring of the Rafidain and Rasheed Banks, according to what was stated in agreement with the World Bank several years ago
Second – Through an analytical view of the reality of the Iraqi economy and the challenges facing the fiscal and monetary policies, in particular stimulating and revitalizing the economy with bank financing requires clarity of financial policies and coordination with monetary policy in stimulating the economy
Third – taking immediate measures to redistribute the banking density of private banks in proportion to the actual need of the Iraqi economy and towards stopping the granting of new licenses to establish new banks, and starting to rehabilitate troubled banks and study the economic feasibility of continuing to work or merging them according to the merger guide issued by the Central Bank in 2019
Fourth – that the nature of the activities of banks depends on the nature of the activities of other economic sectors, and as long as the economic activity is concentrated in trade (imports), the activity of banks remains focused on external transfer, and this means that the problem of the currency window is not in the dollar supply from the central bank, but rather the reason is the demand for the dollar. Therefore, unless other sectors (industry, agriculture, tourism and others) move, we cannot expect diversification of banking activity
It is worth noting that without controlling imports, these sectors will not rise, because without support for the domestic product, the demand for the dollar cannot be reduced
Fifth – It is necessary to provide a legal environment and extend the authority of the law in order to eliminate the phenomenon of default in the repayment of loans, as the non-performing debts amounted to (5 trillion dinars), 70% of which are the debts of government banks and 30% of the debts of private banks, which constitute a large percentage of the total monetary credit granted
Sixth – Activating the implementation of the decisions of the Council of Ministers and the Economic Affairs Committee in the Council of Ministers, which were previously issued to support the banking sector, in particular private banks, to open accounts for ministries and government departments, accept certified instruments, and open documentary credits to the government in the amount of 50 million dollars without going through the Ministry of Finance and the Iraqi Trade Bank and other decisions concerning borrowing for investment projects, collecting taxes and customs fees, and settling salaries
Because on the contrary, it will obstruct the work and activities of private banks and greatly affect their liquidity, revenues and deposits, and delay the transition of banks from the role of banking to the developmental role as established in the white paper
Seventh – Considering the bad debts cases owed by customers in private banks are urgent cases and excellent debts, similar to government debts
Eighth – Working to provide conditions and take measures to help private banks obtain the internationally approved credit rating, and thus strengthen international banking relations with correspondent banks LINK
Source: Dinar Recaps
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