Sun. AM/PM TNT News Articles 4-24-22

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Minister of Finance: The financial situation is very good and an upcoming meeting with the International Monetary Fund and the World Bank is in Baghdad

Today, Sunday, Finance Minister Ali Allawi revealed that meetings with the International Monetary Fund and the World Bank are about to be held in Baghdad, while noting that the financial situation is very good.

Allawi said in a statement to Al-Iraqiya News that “the meetings with the International Monetary Fund, the World Bank and other major institutions in the American capital, Washington, were good,” noting: “We have reached several agreements, the most important of which is support for the reform process, especially the white paper.”

He added, “There are close meetings in Baghdad, which will be after the blessed Eid Al-Fitr, so that the support will be technical and there will be advisors, in order to strengthen the capabilities of the Iraqi government, in order to advance and move forward with the reform project.”

He pointed out that “Iraq is in the process of implementing agreements with the World Bank, especially to support the technical side. We have reached very good results, and will contribute to strengthening the cadres working in the state,” noting that “the ministry is in the process of submitting a law to the House of Representatives for the purpose of employing the unexpected gain resulting from The rise in oil prices, in the areas of strengthening support for groups affected by the prices of raw materials.

He continued, “The law is before the House of Representatives and will be enacted, and it will give strong support to the groups affected by the rise in the prices of basic materials and foodstuffs in particular, and to strengthen the pillars of the Ministry of Finance and to strengthen the possibilities of employing public employment projects,” explaining, that “there is an integrated plan to use the surplus of the price hike, in cooperation with Parliament”.

He pointed out that “this support is outside the concept of reform for the public sector, and we want to reduce government support, especially for sectors that can thrive without government support, but this will be for one time,” explaining that “the government acknowledges that some groups have been affected by the rise in the prices of raw materials, so it will be One-time and non-recurring support.

He stated, “We have a strategic agreement with the United States, especially in the economic aspect, and we want to do it now,” stressing that “there are preparations for cooperation at all levels.”

Allawi stressed the need to “submit projects to obtain support, or a kind of American aid, especially in the technical and technical aspects,” stressing that “the financial situation is very good, and we do not need support from any foreign parties, except for certain projects   link

CandyKisses:
Finance Minister: Our situation is very good and we will present a new law to Parliament that supports these

{Economic: Al Furat News} Finance Minister Ali Allawi described, today, Sunday, the country’s financial situation as “very good.”

Allawi said in a press statement, “The meetings with the International Monetary Fund, the World Bank and other major institutions in the American capital, Washington, were good,” noting: “We reached several agreements, the most important of which is support for the reform process, especially the white paper.”

He added, “There are close meetings in Baghdad, which will be after the blessed Eid Al-Fitr, so that the support will be technical and there will be advisors, in order to strengthen the capabilities of the Iraqi government, in order to advance and move forward with the reform project.”

He pointed out that “Iraq is in the process of implementing agreements with the World Bank, especially to support the technical side. We have reached very good results, and will contribute to strengthening the cadres working in the state,” noting that “the ministry is in the process of submitting a law to the House of Representatives for the purpose of employing the unexpected gain resulting from The rise in oil prices, in the areas of strengthening support for groups affected by the prices of raw materials.

He continued, “The law is before the House of Representatives and will be enacted, and it will give strong support to the groups affected by the rise in prices of basic materials and foodstuffs in particular, and to strengthen the pillars of the Ministry of Finance and to strengthen the possibilities of employing public employment projects,” explaining, that “there is an integrated plan to use the surplus of the price hike, in cooperation with Parliament”.

He pointed out that “this support is outside the concept of reform for the public sector, and we want to reduce government support, especially for sectors that can thrive without government support, but this will be for one time,” explaining that “the government acknowledges that some groups have been affected by the rise in the prices of raw materials, so it will be One-time and non-recurring support.

He stated, “We have a strategic agreement with the United States, especially in the economic aspect, and we want to do it now,” stressing that “there are preparations for cooperation at all levels.”
Allawi stressed the need to “submit projects to obtain support, or a kind of American aid, especially in the technical and technical aspects,” stressing that “the financial situation is very good, and we do not need support from any foreign parties, except for certain projects.”

Mazhar Muhammad Salih: The Central Bank’s balance is three times more than the government’s external debt

Economy News – Baghdad

The financial advisor to the Prime Minister, Mazhar Muhammad Salih, explained, today, Sunday, the monetary policy of the Central Bank of Iraq, and between the contents of two basic pillars of this policy to address crises, he revealed the size of the foreign reserves of the Central Bank and the internal debt .

Saleh said, to the Iraqi News Agency, that “the monetary policy of the Central Bank of Iraq has exercised and is still playing its great role in strengthening the national economy and supporting and supporting it in liquidity, stability and the management of monetary resources, especially through two successive double crises that the national economy was exposed to between the years 2014-2021, as monetary policy confronted The Central Bank has led to the serious stagnation to which the macro-economy and its real sectors were exposed, and its use of a satisfactory monetary policy .

He added, “The two pillars of this policy are: credit easing and granting the monetary market with sufficient liquidity through the continuous initiatives of the Central Bank, and the other is quantitative easing policies to support macroeconomic liquidity in general by motivating secondary market operations with calculated, accurate and successful ranges that saved the national economy in the most contracting economic conditions and supported by one side.

The last of the Iraqi financial policy to get out of the impasse of the fiscal deficit and the deterioration of the country’s financial sustainability by relying on the internal liquidity levers provided by the Central Bank with its accurate, balanced and successful tools .

He pointed out that “the first crisis that our country faced in the years 2014-2017 was a serious double crisis, financial and security at the same time, as energy markets and Iraq’s financial revenues from exported oil deteriorated between these years, accompanied by strict security conditions, namely the war on ISIS terrorism.” The Central Bank of Iraq played its prescribed role in its monetary policy, which contributed to assigning victory in the war and economy arenas, with remarkable accuracy .”

He continued, “While the second double crisis came between 2020-2021, it represented a serious deterioration in Iraq’s oil revenues, a frightening deficit in the current account of the balance of payments, and a more serious deficit in public finances as a result of the price war in the energy markets in the world, and the reduction in the quantities of our country’s oil production to nearly less than Half is under the influence of the (OPEC Plus) agreements and the deterioration of global demand for oil throughout 2020 and parts of 2021

Accompanied by a stifling global health crisis represented by the Corona pandemic and the closure of the global and local economy, as the country was affected by an agricultural crisis due to severe drought and the deterioration of agricultural crops, which made the output The GDP is shrinking to (minus 11%), in addition to the prevalence of poverty and unemployment at unprecedented rates in the country’s economic history .”

And he added, “Under these compelling circumstances, the monetary policy of the Central Bank of Iraq, with accuracy and with calculated and successful steps, led the process of building the foundations for maximizing the liquidity of the national economy, whether by proceeding with the Central Bank’s initiative in revitalizing the real sector with soft loans in which the grant element increased,”

Noting that “those loans approached about about 13 trillion dinars to push the activity of the national market and operate the labor market and the business of private activity forward, in addition to supporting government liquidity and attributing the effectiveness of the government economy and public finance without stopping, by deducting government treasury transfers, which constituted about 67% of the total debts of the Ministry of Internal Finance or the internal public debt borne by the bank The Central Bank of the total internal debt balance, which amounts to about 72 trillion dinars .

He continued: “Thus, the monetary policy of the Central Bank of Iraq, with high success, fulfilled the requirements to meet the needs of growth and stability of the national economy and to provide it with sufficient liquidity, with high accuracy and wisdom, and at the same time supportive of the financial policy that faced harsh conditions through the two successive double crises between 2014-2021, as well as the restoration of the Central Bank Its foreign reserves, which are the cover of the national currency, record its balance today at more than 70 billion dollars, a balance more than three times the government’s foreign debt payable during the years 2022-2028, which confirms the efficiency of the foreign reserves of the Central Bank of Iraq .

He pointed out that “the Central Bank of Iraq is an independent authority under its amended Law No. 56 of 2004, and it is he who draws the monetary policy himself without the interference of any party, and he is the most knowledgeable and best able to manage his policy in stability and development based on the articles of the Constitution of the Republic of Iraq .”

Tishwash:
The dollar is in danger

The countdown has begun for the strength of the redemption owned by the dollar, which was the basis of its strength among the currencies.

In the first challenge faced by the dollar, which is the decision of the Russian state to dispense with the dollar in its foreign trade dealings, and its requirement for the ruble currency as a basis for its transactions with the countries of the world. Here, analysts and economists are awaiting the extent of Russia’s resistance to persuading the countries of the world to deal with it in rubles in a safe manner, away from the US sanctions that it will impose on the countries that deal with it, as Russia will be able to achieve its goal in an attempt to avoid weakening its economy, due to US and European sanctions due to its war in Ukraine. . 

For its part, Russia launched a balloon not to accept commercial transactions, except in rubles, and monitors the reaction of countries.

Here, necessity will be the mother of invention. In cases where countries cannot dispense with Russian goods and merchandise, especially Russian energy and gas and other strategic goods, they will be forced to deal in rubles based on the principle of accepting the least losses after comparing them to the effects of possible US sanctions with the option not to deal in rubles, and here is the interest Countries will judge which way to go. 

Also, any leniency on the part of the US allowing some countries to deal with the ruble in appreciation of the interests of the allies, would be a real victory for the ruble. Will America allow its allies to deal with the ruble?!

If Russia can pass this test in imposing its currency parallel to the dollar, it will set a dangerous precedent for the value of the dollar in the future. Last year, China announced through its president that China intends to trade with the countries of the world in its currency, the yuan, but it waited due to fears of possible sanctions that America might impose. on China. 

We believe that the ruble initiative will encourage China to take such a step, and other countries that feel the importance and ability of their currencies to compete and be freed from the dominance of the dollar can follow. 

Countries may face difficulties at the beginning, but as a result, they will try to make preparations for such a possibility and decision, and we see that China is at the forefront.

If China decides to replace its dealings with the Chinese yuan, it will break the back of the dollar, given the volume of its trade exchanges with the world.

For this reason, we had expected in previous articles that the world is heading towards a new economic system completely different from unilateral hegemony, represented by the strength of releasing the dollar, which has begun to weaken recently, due to circumstances and policies that are no longer appropriate to the new era. 

Do you think Iraq will pay attention to the future of monetary policy in the new economic system, that is, will it care about the real value of the Iraqi dinar and the requirements of its strength in the future and its liberation from the dependence of the dollar or any other currency? 

All the aforementioned indicators are evidence of the confusion of the global economic system and globalization. Will these changes lead to a global event outside of our control?

Fashionable?.

The conclusion that I reached through this reading is that the dollar is in real danger and a candidate for the collapse of its value and its impact on dominating the global economy, but in the medium or long term.  link

Source: Dinar Recaps


Harambe:
Zimbabwe’s Central Bank Says No Plan to ‘Raid’ Forex Accounts | Bloomberg

(4/23/22)

Zimbabwe’s central bank said it has “no reason or appetite to raid” foreign-exchange accounts and denied allegations from the country’s largest industry lobby group of U.S. dollars being raided and a bank run.

The Confederation of Zimbabwe Industries in a position paper published Friday had asked the central bank to dump its weekly foreign currency auction and also highlighted the growing use of U.S. dollars in most transactions, which undermines the use of the Zimbabwean dollar. The lobby group also referred to the “raiding” of foreign currency accounts.

 “The impressions depicted therein are unfortunate and uncalled for as they have the potential of destabilizing financial markets and economic stability of the country,” John Mangudya, the Reserve Bank of Zimbabwe governor, said in an emailed statement late on Saturday.

The central bank won’t suspend the weekly foreign currency auction as requested by the lobby group as this will lead to a shortage of goods and stoke inflation, Mangudya said. “The government and the bank will pursue an orderly de-dollarization process and hence it is false that a mono-currency system is now in place,” he said.

The official exchange rate of $155.14 Zimbabwean dollars per U.S. dollar lags behind the parallel market exchange rate of Z$360 per U.S. dollar, according to ZimPriceCheck.com, a website that tracks both official and unofficial market rates.

Old Mutual’s unit in Zimbabwe in its quarterly economic brief said Friday that dollarization is inevitable, as the official exchange rate is being sidelined in favor of the growing and divergent parallel market rates.

https://www.bloomberg.com/news/articles/2022-04-23/zimbabwe-s-central-bank-says-no-plan-to-raid-forex-accounts

Source: Dinar Recaps

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