KTFA
Samson » July 26th, 2022
Adviser to the Prime Minister determines one option to reduce the dollar exchange.. He predicts the fate of the 2023 budget
07/25/2023 23:16:43
The Prime Minister’s Advisor for Economic Affairs has identified one option to reduce the dollar’s exchange rate against the Iraqi dinar, while predicting the fate of the 2023 budget.
Haitham al-Jubouri said; For the program {Alstra} broadcast by Al-Furat satellite channel tonight, that: “The financial equation in the country is the one that controls the exchange rate of the dollar, and if we want to strengthen the dinar and convince investors abroad to invest in the country gradually, the dollar begins to decline, i.e. encouraging investments and increasing non-oil revenues will raise the level of value of the dinar.
He added, “The Iraqi people are increasing by one and a quarter million people annually, and if we do not remedy the situation and make plans, we will actually suffer in paying salaries during the coming years. The future of future generations cannot be mortgaged to fluctuating oil prices.” Al-Jubouri explained, “In Iraq, if thinking about the economy remains in the same current mechanism, we will have mercy on the current exchange rate, and the white paper remained ink on paper without brains;
With regard to the federal budget for the fiscal year 2023, al-Jubouri said, “It can only be approved by the presence of a new government and not necessarily the same approach as the current government. It may take austerity for the sake of the article, but if the current government remains, we will proceed with setting the doors of law.”
And he continued, “Prime Minister Mustafa Al-Kazemi is the most president who followed up on the energy file in the country, and Iraq spent nearly $6 billion on the electricity sector in 2021, and there was supposed to be a levy for electricity that covers the ministry’s costs completely, but it does not currently reach 15%.”
Al-Jubouri went on to say, “The Federal Court’s decision that the oil and gas law in the Kurdistan region is unconstitutional is a good step to negotiate with the federal government, and the Office of Financial Supervision is responsible for following up on the revenues generated from the region’s oil, while the advances that the region currently receives are deducted from its share in the budget.”
Regarding the economic pressure paper on Turkey after the criminal attack against civilians in the Bazakho resort, al-Jubouri said, “It is possible that the government has now begun to escalate. There is a complaint submitted to the Security Council and there is an intention for the presence of Iraqi forces in the areas adjacent to the Turkish border.” He stressed, “the need to arrange the situation before the boycott and to find an alternative to import, as the value of our imports from Turkey exceeds 20 billion dollars, which is higher than China.”
Regarding automation, Al-Jubouri commented, “Iraq needs the correct automation of the border crossings, and we need other measures to make the automation step successful,” noting “Al-Kazemi’s failure in the financial file, but in general he acted wisely and got Iraq out of major crises.”
With regard to the political file, al-Jubouri stressed, “The framework is keen on the unity of the national ranks by nominating Muhammad Shia al-Sudani for the position of prime minister, and I think that his personality is acceptable to all parties and he is known for his integrity, and so far most of the blocs are welcome.
Al-Jubouri concluded, “The two Kurdish parties are both insisting on their candidates for the presidency, and the nomination of Al-Sudani will lead to the acceleration of deciding the position of President of the Republic.” LINK
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Tivon » July 26th, 2022
Let’s talk about one section in this article regarding the dollar and how Iraq contemplating as to how they can lower the demand of the USD to strengthen the IQD by bringing in investors. This is in their view a strategic way at enhancing the national currency. At least in a local sense of the objective.
On their own this is the logical solution to bring their currency up to par with the USD. Supply & Demand determines the value of many things and their longevity in any market. Not just currency. So what can the investors put their money in that would ignite more interest in the IQD?
Well we know Supply and demand are influenced by a number of factors, including interest rates, inflation, capital flow, and money supply. The most common method to value currency is through exchange rates. The two main exchange rate systems are fixed rate and floating rate systems.
Early currencies were “commodity money,” meaning they derived intrinsic value from the precious metals they were made of. However, the impracticality of commodity money created the shift towards “representative money” – money that lacks intrinsic value but is backed by its ability to be traded for a physical commodity which can be anything from Export/Import, Clothing, Cars, Shoes, Hats, Houses, etc.
The most notable use of representative money is under the gold standard, where each country’s currency is tied to a fixed amount of gold. But we are not on a gold standard. So the commodity or representative of something with value are material things or products that are bought with that money. The local/international market.
So if those investors come in and start investing in banks, stores, schools, companies, businesses, stocks, shares, energy, oil, real estate. etc. I’m sure this will drive up the value of the IQD over time. But, we are not concerned with this aspect of Iraqs plan to come out gradually with a rate change on the way to 1:1 parity. Petra covered the reason why this is not feasible as it will go against guidelines by the IMF.
And this would defeat the purpose of the EFSL that is designed to address the immediate concerns of the overall economy. Because remember people keep in mind what has to happen before November. Do you know what that is? The adoption of ISO-20022. Why?
Because systems like the SWIFT, EBA-(European Banking Authority), and Target2, will have already migrated to ISO-20022. This is a digital system where only currency backed by natural assets can operate. No fiat.
Now does it make even more sense as to why the CBI mandated that all banks in the country be on their new platform by August 15th? This new system is way more faster at handling transactions, inflation, fluctuations, and any volatile market at extreme speeds no matter the volume of money that is moving.
Again, the goal is to phase out paper money or reduce it greatly. But I still think it will have a place somewhere. Iraq is on the SWIFT. Will they join the BRICS Nations that will use the CIPS system?
Probably some time in the future. But I am sure they have to have an international currency backed by gold/silver and at least be apart of the WTO first.
Guys, SWIFT is estimating that by 2023 79% of high value payments in international trade by a volume of 86% will be done with the ISO-20022 system. That’s basically all modern countries.
You think Iraq has until November to jump on board? Absolutely not. I have the link to that information from SWIFT. IMO
Wagmaster » July 26th, 2022
The u.s. dollar needs to be a non factor and the dinar must be the one and only currency used.
Samson » July 26th, 2022
A new parliamentary movement to restore the price of the dollar to its previous era
26th July, 2022
On Tuesday, the representative of the National Approach Alliance, Hassan Al-Asadi, indicated the possibility of reducing the dollar exchange rate in the new general budget, stressing that there is a parliamentary movement to return the dollar exchange rate to what it was previously.
Al-Asadi said in a statement to “Al-Maalouma”, that “there is a parliamentary move to reduce the dollar exchange rate in the new budget to its previous price.”
He added that “all the justifications adopted by the caretaker government regarding changing the exchange rate of the dollar had negative economic effects on the Iraqi people.”
Al-Asadi pointed out that “lowering the dollar exchange rate should be a priority for the next government,” noting that “Iraq is going through a very bad economic situation as a result of the caretaker government’s confusion and its raising of the dollar exchange rate.” LINK
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Billuke » July 26th, 2022
“Previous price”….”previous era”. “Does she or doesn’t she….only her hairdresser knows for sure.” imo
Tivon » July 26th, 2022
These people have to be clueless. Notice how he doesn’t specify what year? Because if he is referring to the 2022 Budget he would show his hand. As we know they don’t even want to open one. He can’t say the 2023 Budget because Iraq doesn’t have time to wait that long to address or adjust the rate of their currency thanksto SWIFT.
When they say next government they are basically saying 2023. This is what I would consider a disingenuous disinformation piece. They keep referring to Al-Kazemi as a caretaker government. As if he doesn’t have any authority to address the exchange rate now. Especially when those 100 deputies have already signed up to do so.
Obviously they were not waiting for any new government before they signed. They write these articles only with the Iraqi citizens in mind. Because the 2023 Budget will be for all the new projects. The EFSL has to address everything this year because it will be of no use beyond 2022.
So adjustors wages and salary that the Ministry of Finance appears to be doing Im sure is tied to the new oil contracts as well. Because any money left over will go towards the new government and budget.
You know what I noticed is we assume these people know everything about what is going on because that’s their backyard. But they are not on any websites constantly keeping up with the volume of information that conflict with their narrative of what needs to be done with the dollar. Because these are older people that are accustomed to an archaic system that is no longer in play. Especially when you are talking about the ISO-20022.
Didn’t the Federal Reserve come out with a report on the challenges facing cross border payments as being slow and archaic? Due to high fees, limited accessibility and the friction of this problem includes currency exchange, legal regimes, and technological issues.
Well what is one thing that can solve all of these problems? Digital Currency/XRP/XLP. Which is why countries are being linked via The World Bank & US Treasury that have already adopted the new ISO-20022.
Digital Currency or Crypto Asset= XRP for exchange across borders (X-borders) and exchanging value between all markets and asset classes. XRP will be used to balance trade accounts between Sovereign entities or countries, via Treasury & Central Banks.
What is Iraq trying to set up? A Sovereign Fund correct? I will comment more on this. I am very busy.
Starting Monday, Zimbabwe is selling one-ounce, 22-carat gold coins bearing an image of Victoria Falls, its world-famous natural wonder. Each has a serial number, comes with a certificate and will be sold at a price “based on the prevailing international price of gold and the cost of production,” the central bank said in its announcement on July 4.
The coins will be tradable both in Zimbabwe and overseas, the bank said, and can be exchanged for cash. The goal is to reduce the quantity of Zimbabwe dollars in circulation to eventually restore that currency’s value.
Tell me this does not sound like what Iraq will do to address the paper currency in some other form? Now will this be affordable to the average citizen? Not sure. As only institutions will be able to afford it at its current price. So there’s still room for other methods. IMO
Source: Dinar Recaps
Samson » July 26th, 2022
Iraq signs a memorandum of understanding with the United Nations on the digital transformation project
26th July, 2022
The General Secretariat of the Council of Ministers announced, on Tuesday, the signing of a memorandum of understanding with the United Nations Development Program on the digital transformation project in Iraq.
A statement by the secretariat, which Mawazine News received a copy of, stated that, under the patronage of the Secretary-General of the Council of Ministers, Hamid Naim Al-Ghazi, the Director of the National Data Center in the General Secretariat of the Council of Ministers signed, today, Tuesday, with the resident representative of the United Nations Development Program (UNDP) in Iraq, a memorandum Understanding on the digital transformation project in Iraq.
Al-Ghazi indicated, during the signing ceremony ceremony, that the signing of this Memorandum of Understanding is a step forward towards further digital transformation in Iraq, in line with our national strategies and objectives, by strengthening e-governance processes, and establishing a more efficient, modern and reliable civil system for all Iraqis.
He added that the United Nations Development Program (UNDP), through the memorandum, will provide advisory support and training in the field of digital transformation and e-governance by providing specialized international consultants to formulate digital transformation policy, as well as preparing for a national cloud strategy, and developing road maps that support e-government projects.
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MilitiaMan » July 26th, 2022
There is digitized border tax system called AYSCUDA, there is the BUNA platform owned by the AMF for clearing digitized currencies in the region and around the world. There is here now more support for E-Government out of the UNDP.
Keep in mind the CBI has hooked up to at least 3 key links to entities within the GOI for communication. A managerial aspect appears to be in the wings now form the MOU. It looks like we are in the READY, SET, GO… mode!!! Well, per the conference call yesterday the following supports that there are other items in the process of being exposed to those with a need to know. It shall likely not be long for all of us to have that similar need to know too.
I imagine that the go part would be simultaneously with the FX. We surely can see the writing on the wall now.. imo ~ MM.
FRANK26 » July 26th, 2022
“IT IS OUR OPINION/RUMOR/SCUTTLEBUTT … LAST WEDS, 2 FIRM GUYS, IMO, ARE IN THE ME RIGHT NOW MEETING WITH THE ARAB MONETARY FUND IN A CLOSED MTG. WITH THE CBI, WHO WILL SHOW AT THIS MTG. THE PROOF NOTES.” ~ Frank26
Samson » July 26th, 2022
The General Secretariat sets the ceiling for the salaries of lecturers and workers within the Food Security Law
26th July, 2022
Secretary-General of the Council of Ministers, Hamid Al-Ghazi, set, today, Tuesday, the ceiling for the salaries of lecturers, workers and contracts after they were included in Resolution 315, while noting that the amendment of the salary scale law was sent to the House of Representatives for approval.
Al-Ghazi told the official news agency, Mawazine News, that “in light of the law on emergency support for food security, the issue of lecturers, wages and contracts was presented to the Council of Ministers to adjust their status within Resolution 315,” noting that “a committee of the ministries of finance, planning and electricity is working to adapt he put them to submit the final report to the prime minister.
He added, “The service, preparation, competencies, and financial amounts required from institutions will be calculated, to adapt their status within the emergency support law for food security, so that the minimum salary of the employee will be 350 thousand dinars, up to 700 thousand dinars, because most employees, especially in service departments, have low salaries.”
Regarding the salary scale amendment, Al-Ghazi stressed that “the amendment of the salary scale law is among the government’s priorities,” noting that “the amendment of the salary scale was sent to the House of Representatives for approval.” LINK
MilitiaMan » July 26th, 2022
It looks like they are doing what the Prime minister ordered them to do. While they adjust salaries, etc., they are going to restore the Dollar exchange rate to what is was in a previous era. Hence the need to adjust the rates at which they pay out. Who wouldn’t want 100% increase in wages..? Calculate away I say.. imo.. lol ~ MM
18th July, 2022
The Prime Minister’s Adviser for Economic Affairs, Haitham al-Jubouri, presented an economic vision that is summed up in converting four ministries to a self-financing system, restoring the dollar exchange rate and unifying employee salaries
Al-Jubouri said, according to the official Al-Sabah newspaper, that “there is an economic vision for the next
Source: Dinar Recaps
Speaker Of The Russian State Duma: 5 Reasons Why The Dollar Is Losing Its Positions More And More
26th July, 2022
The Speaker of the Russian State Duma, Vyacheslav Volodin, explained that there are five reasons why the dollar is losing its global positions more and more.
This came in a post that Volodin published on his own channel on the “Telegram” application, where he wrote:
“5 reasons why the dollar is losing its position more and more:
1- The dollar has no cover of real goods or resources
After the withdrawal of the United States of America from the Bretton Woods agreement, the dollar was no longer tied to gold, and the US dollar press became unrestricted, hence the huge US national debt, and the record inflation that is associated with Biden’s name.
2- Using the dollar as a tool of political war
Unlawful sanctions, payment restrictions, and theft of foreign exchange reserves do not add confidence to other countries that their money will be safe.
3- Geopolitical changes
The unipolar global model has exhausted itself, and there are increasing demands for multipolarity in the world. As a result, there is a growing demand for an alternative to the dollar. Evidence of this is the increase in mutual settlements in local currencies.
4- Washington’s unwillingness to admit its mistakes and then work to solve them
5- The cyclical nature of history
There is a recurring historical pattern: each world currency has its own period, about 100 years. Replace the Portuguese Real with the Spanish. Then the Dutch guilder, the French franc, the British pound and the US dollar dominated. The latter will be exchanged for a new currency. We can say today that that currency will not be the euro, which is losing more and more as well, but the currencies of countries with sovereign economies.
At what speed will this happen? Unanswered question. But it is clear that the process of declining the position of the dollar around the world has begun and can no longer be stopped.” LINK
Samson » July 26th, 2022
Russia Will Abandon The International Space Station After 2024
26th July, 2022
Russia announced today, Tuesday, that it will withdraw from the International Space Station project after the year 2024.
The new head of the Russian Space Agency “Roscosmos”, Yuri Borisov, said that his country will abandon the International Space Station after 2024, provided that a Russian national orbital station will be established.
At a press conference, Borisov stressed that Russia is working within the framework of international cooperation on the International Space Station, and will, of course, fulfill all its obligations to partners. He stressed that the decision to leave the International Space Station in the specified period “has already been taken.”
Earlier, Russian President Vladimir Putin issued a decree relieving Dmitry Rogozin from the post of Director General of Roscosmos Agency, and appointed Deputy Prime Minister Yuri Borisov in his place.
America’s Strategic Oil Reserves Fall To Their Lowest Level Since 1985
25th July, 2022
Data from the US Department of Energy showed that crude oil stocks in the US Strategic Petroleum Reserve fell by 5.6 million barrels during the week ending July 22.
According to the data, the crude stockpile in the strategic petroleum reserve fell to 474.5 million barrels, the lowest level since June 1985, according to what was reported by “Reuters”.
And the administration of US President Joe Biden had approved a plan to withdraw from the strategic oil reserve, according to which the United States would release nearly one million barrels of oil per day from its reserves for a period of six months, a historical volume that confirms the White House’s concern about high energy prices and lack of supplies in the wake of the Russian invasion. for Ukraine. LINK
America sells an additional 20 million barrels of oil from the strategic reserve
26th July, 2022
The White House announced, on Tuesday, that the administration of President Joe Biden will sell an additional 20 million barrels of oil from the strategic reserve as part of a previous plan to sell 180 million barrels
The Biden administration said it would sell an additional 20 million barrels of oil from the strategic reserve as part of a previously announced statement aimed at calming oil prices
The administration said in late March that it would release one million barrels of oil per day for six months from the Strategic Petroleum Reserve, which is located in caves on the coasts of Louisiana and Texas LINK
Source: Dinar Recaps
Clare » July 26th, 2022
Financial Expert: Issuance Of A Late Budget Law Is Better Than The End Of The Fiscal Year Without It
Baghdad – The financial expert, the financial advisor for the Prime Minister, Madhar Muhammad Salih, confirmed that “issuing a late budget law is better than the end of the fiscal year without it.”
He told the National Iraqi News Agency (NINA) that the availability of the appropriate atmosphere is necessary for approving the general budget, even if its issuance was late.
Salih added: Issuing a budget law is better than the end of the fiscal year, which is empty without a general budget.
The state budget law was supposed to be approved at the beginning of this year. LINK
Tivon » July 26th, 2022
Sorry buddy, doesn’t look like that is happening. Because by the time they get around to it Al-Kazemi would have already addressed all outstanding issues concerning the citizens. Which will make him a political juggernaut in the eyes of the international world and his supporters. There is no way Al-Kazemi will leave his people out to dry waiting for another GOI to get their act together and stall laws, projects, and investments with political sectarianism. Which is why we have the EFSL to begin with. IMO
Popeye7 » July 26th, 2022
Imo, you are right Tivon… Why bother when fiscal year 2023 is needing to be addressed now… The Emergency Food Law will be more than adequate to take care of what is necessary… Salih has been making some rather unsound statements during the coarse of this last year.. When in the past that has not been case… Is he being used as a decoy to throw off Kazemi’s enemies within parliament?… Because in the past Salih’s advise, and suggestions were very wise, and made sense… He has been somewhat off this year Imo…
Tivon » July 26th, 2022
The volume in which he has been stating his opinions on the strategies as to what is feasible for Al-Kazemi were off & on. Especially when he stated how they need to wait for this and that to address the USD exchange rate.
So I would not be surprised that he is running interference for Al-Kazemi to throw off the scent of his opposition to hide what is really happening. Because the system they reference as to how to go about addressing the rate is no longer viable or application. Which is why the digital economy is taking shape from the BUNA, AYSCUDA, Blockchain, etc. These are platforms that can handle high volume trade with no issues regardless of the capital flow. This is what the Federal Reserve even addressed in their reports not to long ago.
The more information I read about the new platforms the more the CBI makes sense. They are ready to do something new and modern. Which is why I read these articles with a keen eye because there are layers seen and unseen that need to be brought up to make sense of the jargon at times. IMO
MilitiaMan » July 26th, 2022
There seems to be more to this story as well as others. There are I see varied thoughts on this today topic too from others. From my perspective, for Salih to be talking about things that he should know quite well, is not to be lost or put off on his potential of poor work and or misleading view points under the present conditions the country and Kahdimi are under. Kahdimi would know if this guy was off his rocker or not. If so and he is, it would be unlike Kahdimi to allow mis direction from him or at least have counter to it.
From the looks of it he is stating that it is better to have a late budget over not at all or into next year. Salih suggests there needs to be an appropriate atmosphere and it is necessary for approving the budget.
Well, if we look at previous writings there is an atmosphere that supports a budget could be placed possible now even if it is late, as late is better than never or next year. He notes that rising oil prices have a positive factor for Iraq’s economy. There is a surplus in the current account of payments and a surplus in the country’s financial budget.
He states that the surplus will remain a reserve for Iraq outside the EFSL and outside the 2019 FML, presumably. Everything that is not spent is placed into a precautionary reserve account which is usually a sovereign fund that establishes sustainability of the budget in the future. That reserve is for development and investment purposes.
We all know there is far more revenues that are not talked about above, but, they are out there. For instance, the border customs, fees, taxes, tariffs, etc.. Add them into the atmosphere and economically the air is clear.
So, is there anything else that may be in parallel with the financial side of things? Surely, there is the political side of things that are on a side track moving along with the reform efforts.
They have not seated a government for about 10 months now. That is out side of their constitution.
The present government is the tripartite if you will at present and have been running the show and have been quite capable in doing so. We did see deals being made, contracts being signed with countries, entities, contractors, etc.. That Total deal was $27 billion USD. That is a big deal.
There would have had to been assurances between the PM, FM, CBI, etc.., for that the political side of things would be legal for to have concluded the contracts.
That said, there could be an easy fix for this and it may all hinge on a few things that may have been worked out in advance, yet, not yet exposed in totality.
One is that at present the government has shown that they can use the necessary powers to get things done. They may even be able to exercise similar powers to get through the impasse politically or they vote the president and the PM in and in short order.
There is a meeting with Parliament and the Ministry of Justice tomorrow, if I am not mistaken.. Will that have anything to do with legalities to budgetary items, legalities to constitutional issues, issues with Maliki, etc.? They didn’t say, but they did refer to about 20 items being on the table..
The advisor to the PM suggest the atmosphere is good from that way I see it. He states there can be a budget out side of the EFSL and FML, as there are monies not spent and that getting a budget out now is better than later.
I look forward to seeing what they do next.. imo It could be very powerful.. imo.. ~ MM.
Source: Dinar Recaps
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