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Iraqi News Sunday AM 12-13-20

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The 2021 Budget Deficit And A Warning Of The Decline In The Value Of The Iraqi Dinar

In recent days, the Iraqi dinar witnessed a decline against foreign currencies, especially the dollar, and the local markets recorded, this morning, Sunday, December 13, 2020, a rise in the exchange rates of the dollar, and the selling price of the dollar reached 127,500 dinars and the purchase price 126,500 dinars, per 100 dollars.

It is reported that the Central Bank of Iraq puts nearly 190 million dollars daily at a price of 119 thousand dollars per 100 dollars, while the price of 100 dollars is higher than this amount in the market.

Regarding the reasons for this rise, and the difference between the two prices, (official and non-toxic), economic expert Saleh Al-Hamashi told Radio Nawa, “Any movement in the Iraqi dinar exchange rate affects negatively, affects the income of all Iraqis,” noting that “80% Of the Iraqis depend on the salaries of employees and government support, and this means reducing the wages and salaries of state employees and thus will reduce the value of the Iraqi dinar, “noting that it” affects the purchasing power that is reflected in the commercial movement in Iraq and this is clear since 2019 “, attributing the reasons for this to” Because there is no economy in Iraq. ”

Al-Hashemi said, “Commercial exchange has decreased dramatically, as it reached 38 billion dollars annually, while it was up to 50 billion dollars annually,” pointing out that “this is due to the weak purchasing power of the Iraqi citizen who suffers from the financial crisis, delayed salaries, and many interruptions.” From business. ”

The expert called on the government to be limber and not austerity, stressing that “the government has a lot of unjustified spending,” pointing out that “the sales of the Central Bank of Iraq, from the dollar is very large, but more than entering Iraq,” noting that “it must be held accountable for bills.” This import is better than changing the exchange rate of the dinar. ”

Pointing out that “the depletion of the Central Bank of Iraq stock of foreign currencies, on top of which is the dollar, will lead to weakening the cover for the Iraqi dinar, and this leads to its rise,” adding that “the problem is in the Iraqi dinar, if it rises, the government will not be able to control it because there is no Iraqi financial capacity and an Iraqi ability to control On the Iraqi dinar. ”

Saleh Al-Hashemi noted, “If the government is able to rationalize consumption and move away from unjustified spending, we may be able to preserve the rise of the Iraqi dinar and the purchasing power, and to keep Iraq away from the zero risk, which seemed to rise significantly after the financial crisis of 2020.” .

As for Abbas Al-Ardawi, who discussed the economic issue, he told Radio Nawa, “There is no doubt that those who watch the Iraqi state’s economic policy find it confusing and unclear. It does not adopt legal studies and opinions, but rather we go towards diligence. Iraq from the 1920s. ”

He added that “there are a large number of experts who talked about stations that can change a lot of the Iraqi economy or deal with the government seriously in the issue of the currency market, large stations and the countries of the world have many experiences in reviving their economy, but there is a political decision that negatively affects any adoption of economic visions.” They can be solutions. ”

Al-Ardawi said, “We have alternative solutions, which are barter solutions, many economic solutions. We have solutions, but we will not go to them and will not produce a correct vision until this moment.”

As for the economist Safwan Qusay, he warned in a press statement against relying on the cash issue without a cover at a rate of 12%, meaning that the official Iraqi dinar price will be 1340 per 100 dollars, reducing the dinar against the dollar in the face of the budget deficit, stressing that it will negatively affect the poor citizen.

Qusay said, in light of a clear weakness in financing the federal budget deficit for the next fiscal year 2021, some suggest relying on monetary policy to face this deficit by undertaking the monetary issuance without cover at a rate of 12%, meaning that the official Iraqi dinar price will be 1340 per 100, stressing that ” The necessity to move away from this proposal and activate the role of the Central Bank of Iraq in maintaining the official rate of 1200 unchanged.

Economist: The Dollar’s Continued Rise Is A Dangerous Indicator Of New Crises

08:52 – 12/13/2020  The information / special  between the economist, Wissam Al-Tamimi, said that the continued rise in the exchange rate of the dollar in the local markets foreshadows an economic disaster at the level of Iraqi per capita income, in addition to being a dangerous indicator that raises the prices of all commodities in the market.

“The government confirms that the exchange rate of the dollar is fixed and has not witnessed any increase in the central bank, as the economic control committees should be activated to account for banks and banking shops that raise the exchange rate,” Al-Tamimi said.

He added that “the high exchange rate of the dollar threatens to increase the rate of poverty in Iraq , due to the rise in commodity prices in a country that depends more than 90 percent on imported goods.”

And that ” Iraq will enter into new crises, and the market will witness a great rise from which the government will benefit in bridging the budget deficit, but that is theft of the people’s money and inserting it into a new cycle.”

Which Is The Savior Of The Iraqi Economy … Internal Or External Financial Diversification?

Reports| 04:48 – 12/13/2020   Special – Mawazine News   The consequences and effects of the past years of financial and economic mismanagement of Iraq are still continuing, and building the national economy on a single financial resource has increased these consequences as the rentier resources are directly affected by any crisis that may occur at the global level, since the black gold market is directly linked With political, security, health and other events, and oil prices are rapidly collapsing, as happened in 2020, when only a few days remained; Oil prices plunged to about $ 10 in the middle of the year, and then stabilized between $ 30-35 per barrel. Here was the end of the beginning for the Iraqi economy.

The continuous fluctuation of crude oil prices has weakened the Iraqi government’s ability to pay monthly salaries and ruling expenses and its resort to the internal borrowing law that the House of Representatives voted last month to pay monthly salaries until the beginning of next year, paralleled by parliamentary statements of the government’s inability to pay the salaries of January of next year due to the lack of Sending the government of Mustafa Al-Kazemi to the federal budget, where the House of Representatives says through the Finance Committee that “the draft budget, if it reaches parliament, needs 45 days to read and amend it, and then the parliament begins to vote on it.”

Do we need loans?

Gold loans, which are long-term loans accompanied by easy payment facilities for the implementation of projects, the condition of productivity, but does the Iraqi economy need it at the present time and with the start of the new year or going to diversify the financial resources is better for the Iraqi economy?

Mazhar Muhammad Salih, the financial advisor to the prime minister, Mustafa Al-Kazemi, told Mawazine News that “real internal financial diversification remains the one who has priority, but going to external diversification such as sovereign wealth funds comes as savings that are difficult for the economy, especially rentier, to absorb them immediately in internal projects due to many obstacles. “.

He attributed the reason for this to “the lack of absorption capacity, so diversification is taking place, meaning those surpluses or sovereign savings are being invested in flexible economies with advanced financial markets and strong activities that need financing, and profits when achieved are transferred to the local economy.”

The need to diversify public debt instruments in a way that contributes to entering the wheel of investment, contributing to development, moving and maximizing the market capitalization, and withdrawing the mass of the public to be a partner in slimming its size and bridging its gap according to the assertions of economic researcher Ola Al-Tamimi to / Mawazine News /.

Al-Tamimi pointed out that “this matter requires the issuance of a new type of public debt bonds bearing the investment, development, not savings, character, because the Iraqi economy, according to Al-Tamimi today, is in need of a specialist in public debt to lead and draw up its policies in light of the successive governments’ pursuit of a single path in financing a gap. (Revenues / expenditures) are represented by resorting to domestic (government) and external borrowing, and the first task assigned to this specialization is “diversification of public debt instruments.”

Saleh parallels Al-Tamimi by responding to her opinion that “saving is definitely an investment tool and comes opposite to hoarding, which means a leakage in the income cycle and a weakening But the reality of saving that does not go to investment remains, which also leads to the so-called paradox of thrift, a society that enjoys surpluses, but they will be eroded with the passage of time due to weakness in their investment and their maximization, as is the case in our country today through the forms of hoarding and uninvested savings.

Saleh added: However , when matches the desired savings exante Allergob investment inevitably will change the equation savings towards growth through the financing of investments. ”

I have posted on this place how to set up a development fund sponsored government can issue bonds to the public and the formation of specialized financial lever flows for investment projects for the private sector and not Change it, as Saleh says. ”

Financial advisor that he can bondholder (and adds as a religion) that converts to the winner (shares as equity) in the fund converted bonds is called a hybrid method that works perhaps under Islamic Sukuk systems. ”

Case Allaigbn are prevalent in customer behavior as evidenced by the cash leakage money leakage Out of the banking system, from the cash issued to circulation, it lies 85% in the form of hoardings in the quarters of traders, investors and individuals in homes. ”

This is due to the fear and uncertainty of political and economic conditions and policies volatile and loss of confidence in financial institutions and markets the risk of loss Awalkhosarh, confiscation and fraud. ”

Everyone ‘s looking for certainty certainty and the availability of the certain guarantees in the recovery and avoid the risk of loss of liquid financial wealth with investments surrounded by doubts.

After the trauma suffered by the economy The Iraqi government and the great tremor that the current government faced, there is no longer any excuse or room for procrastination by not setting effective policies and solutions.

The country’s financial policy cannot be managed by the method of borrowing, and this method will make Iraq a bankrupt country in the event that the march is prolonged in this direction, as the central bank looms short “Sharp has started to affect the financial stock, and if that stock is exhausted, alarm bells will ring, and then biting the windows will not help.”

Parliamentary Finance Reveals What Will Be Included In The 2021 Budget Regarding Appointments

Pratha News Agency80 2020-12-13  On Sunday, the Parliamentary Finance Committee announced its intention to include more than 250,000 job grades resulting from deletion and creation in the 2021 budget.

Committee member Naji Al-Saeedi said in a statement carried by the official Al-Sabah newspaper that “it is likely to vote on the budget for next year in the cabinet session next Tuesday.”

Al-Saeedi added that “the draft federal budget law will also include the dues of the 315 decision for workers in accordance with the system of contracts and daily wages in all ministries and agencies, and the investment budget for the provinces will also be included.

The Central Bank Supports Eight Sports Clubs

December 13, 2020   The central bank supports eight sports clubs   Based on the importance of supporting the youth and sports sector in Iraq, His Excellency the Governor of the Central Bank, Mr. Mustafa Ghaleb Makhaif, announced an initiative to support eight sports clubs. This came during his participation in a ceremony organized in Baghdad in the presence of His Excellency the Minister of Youth and Sports Captain Adnan Darjal, government and parliamentary figures, in addition to the heads and pioneers of sports clubs and representatives of the banking sector.

The initiative, which was launched through the Tamkeen Initiative Fund, which is supervised by the Central Bank and sponsored by banks and exchange companies, I received thanks and appreciation from His Excellency the Minister of Youth and Sports and those concerned with this sector, stressing that this will greatly contribute to the progress of the clubs ’work and help them in light of the financial distress the country is experiencing.

To that, His Excellency the Bank’s Governor stressed the necessity for sports clubs to go to the field of investment to face financial hardship and to enhance self-resources. It is reported that the clubs that were included in the initiative are (Al-Samawa, Al-Qasim, Al-Diwaniyah, Najaf, Zakho, Erbil, Nasiriyah, and Al-Shatrah). The Central Bank of Iraq  Information Office  December 13, 2020

Al-Faw Port .. Exciting Details Of The Transport Meeting, Deputies, And A Public Session Of The Council Of Ministers

Time: 12/13/2020 15:36:23 Read: 2,496 times  {Baghdad: Al Furat News} A member of the Parliamentary Services and Reconstruction Committee, Jassem Al-Bakhati, revealed exciting details about the results of a meeting of members and deputies from various parliamentary committees with Minister of Transport Nasser Al-Shibli and his advanced cadre in the ministers regarding the Faw Grand Port project and the company to be contracted to implement it.

Al-Bukhati told Al-Furat News, “After there was a conflict of opinions and statements, we met today the Minister of Transport, his technical team and the director of the ports, and we asked him specific questions, among them, (What company has the specifications and experience in building ports),” so the minister answered frankly that the company The Chinese company is a company specialized in the field of electricity and is far from the issue of building the port, and the schedules that it set are inaccurate in the issue of the main facilities and sections of the port, such as docks, pits, etc.

He added, “The Minister of Transport and the Director of Ports confirmed that all technical specifications, technical expertise, experience and similar works are owned by Daewoo in implementing the port.”

Al-Bakhati pointed out that “there is complete agreement on the integrity, services and other committees to go towards what the Ministry of Transport sees regarding the company, its work and the quality of implementation, and an agreement that the Daewoo company is better through the port manager’s proposal and that the cabinet session next Tuesday will be public so that we know who With the project and who is against it? ”

“We have instructed the Minister of Transport that if the contract is completed and authorized by the Prime Minister in the referral and contracting process, we will go within a few days to make a comparison with the Korean company (Daewoo).”

The Parliamentary Services Committee and a number of deputies met with Minister of Transport Nasser Al-Shibli and his advanced team regarding the port of Faw.

In a statement after the meeting, the committee stated an agreement with the ministry “to agree to sign the contract for the completion and completion of the Faw port project, which will be voted on in the cabinet session next Tuesday.”

The statement added that “the committee announced that it will continue with the Korean company (Daewoo) to complete the completion of the large Faw port project, according to the specifications set by an Italian consulting company.”

It is noteworthy that the Ministry of Transport said earlier that it would announce before the 15th of this month (next Tuesday) the signing of the Faw port contract, either with the Korean Daewoo company or with a Chinese one, and that it would start implementing the project before the end of this year,and the large port of Faw is a port in the Faw peninsula Southern Basra Governorate.

The cost of the project is about 4.6 billion euros and the estimated capacity of the port is estimated at 99 million tons annually, to be one of the largest ports overlooking the Gulf and the tenth in the world.

The foundation stone for this project was laid on April 5, 2010.   LINK

Talabani: The Kurdistan Government Is Ready For An Agreement With Baghdad

Political| 05:01 – 12/13/2020  BAGHDAD – Mawazine News  , Deputy Prime Minister in the Kurdistan region, Qubad Talabani, confirmed, on Sunday, that the regional government is ready for an agreement with Baghdad.

Talabani told the negotiating committee in Baghdad, “The regional government is ready to deal with the rights and financial dues for the Kurdistan region in accordance with the constitution and applicable laws.”

And, “the regional government also announces its willingness to reach an agreement.”

The negotiating committee formed by the House of Representatives had held its meetings in advance with the relevant Iraqi parties, in addition to its preparations to reach as soon as possible to find an appropriate mechanism for the outstanding issues, especially the problems of oil and financial revenues.

The committee asked the region’s delegation to present its proposals and recommendations, so that the committee could unify these propositions with its plans and find an outlet that would facilitate the issue of defining tasks and the rights of the Kurdistan Region from the federal budget for the next year 2021.

Economist To / NINA /: Achieving A Government Vision For Comprehensive Development Is Better Than Immediate Steps That Deepen The Country’s Economic Crisis

Sunday 13, December 2020 10:05 | Economical  Views: 240  Baghdad / NINA / A consultant in industrial development and investment, Amer Al-Jawahiri said: “The country’s economic reality requires quick government steps that stop its continuous deterioration.”

Al-Jawahiri said in a statement to the Iraqi National News Agency ( NINA ): “Achieving a government vision for comprehensive development with revitalizing steps for all government institutions is better than immediate steps that deepen the country’s economic crisis.”

He added: “All indications indicate that the reality of the economic deterioration that will continue to decline imposes on the management of the economic file, the Ministerial Committee for the Economy and all state institutions, and with the support of civil society institutions, to focus on the basics and requirements of development and to achieve the vision of sustainable and comprehensive development instead of following steps that indicate weakness in the methodology of management. And confuse the convulsive dialogues taking place. ”

He stressed the importance of taking constructive productive activity steps with a higher resonance than the problems of financing, salaries and cash reserve consumption. /

The US ambassador: We are continuing to reduce our forces in Iraq and redeploy them in the region

Time: 12/13/2020 15:39:16 Read: 1,248 times  (Baghdad: Al Furat News) The National Security Adviser, Qassem Al-Araji, received in his office today, Sunday, the US ambassador in Baghdad, Matthew Tueller.

Al-Araji’s media office said in a statement, which Al-Furat News received a copy of, that “the National Security Adviser received in his office the American ambassador in Baghdad, Matthew Toller, and during the meeting discussed the overall political and security situation in the region, and emphasized the importance of Iraq and the region witnessing more security and stability.” In addition to continuing the war on terror and drying up its sources of funding. ”

The American ambassador affirmed, “his country’s continued support for the Iraqi government, and the progress of reducing the American forces and redeploying them in the region,” noting that “the completion of this file will be achieved through the continuation of joint cooperation between Baghdad and Washington, in the intelligence and security effort, to combat terrorism.”

Al-Araji also discussed with the American ambassador ways to develop relations between Iraq and the United States of America in the economic, financial and commercial fields that serve the interests of both countries.  LINK

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