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More Iraqi News Monday PM 12-28-20

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An Unprecedented Decrease In Central Bank Auction Sales

Time: 12/28/2020 12:12:44 Read: 15,743 times  (Baghdad: Al Furat News) The Central Bank of Iraq’s dollar sales decreased in an unprecedented way, on Monday.

According to the bank’s daily bulletin on the currency auction, the total sale for the purposes of strengthening the funds abroad {transfers, credits} amounted to 33 million 63 thousand and 878 dollars, while the cash sale amounted to one million and 100 thousand dollars.  While the total sales were 34 thousand and 163 thousand and 878 dollars.

Thursday’s foreign currency auction sales were $ 67 million.

The central bank sells dollars for the sums transferred to bank accounts abroad at a price of {1460} dinars per dollar, and cash sales at {1460} dinars per dollar, in implementation of its recent decision to raise the exchange rate.   LINK

The Continued Decline In Central Bank Sales In The Dollar Auction

Economie| 03:16 – 12/28/2020  BAGHDAD – Mawazine News   The Central Bank of Iraq sales continued, on Monday, to decline in the hard currency auction since the start of the new dollar price.

According to a statement by the Central Bank, Mawazine News received, “The total sale for the purposes of enhancing assets abroad (transfers, credits) came as follows:

33,063,878   Total cash sales   1,100,000    Total total sales   34,163,878.”

He added, “The sale price of the sums transferred to bank accounts abroad reached (1460) dinars per dollar, and the cash sale price (1460) dinars per dollar.”

It is noteworthy that the central bank’s sales in the currency auction were high before the start of the new pricing and were in the range of $ 250 million per day.  https://www.mawazin.net/Details.aspx?jimare=135954

Reflection:  I remember a very long time ago that Shredd made a statement in a chat that if you seen a very sharp down turn in currency sales and it stayed well below normal, there was a good chance of a revaluation or start of the currency reform process. I don’t remember the number he used but I think it was near or just under a million? Maybe? Been a minute so I may be wrong on that number.

New Year’s Celebrations In Iraq Are “Captive” By Corona And The Devaluation Of The Dinar

Reports| 04:32 – 12/28/2020   Baghdad – Mawazine News   Preparations to celebrate New Year’s Day in Baghdad seem apparent in most regions, but what is different this year is that the demand for purchase is less due to the stifling economic crisis in the country, and the decline in commercial activity after the devaluation of the Iraqi dinar, and this is noticeable in wholesale markets , Such as Shorja in central Baghdad, or the rest of the popular markets, as it was almost empty except for some shoppers.

 

This decline in turnout may also be due to another reason related to the measures taken by the Iraqi Ministry of Health several days ago to cancel celebrations in restaurants, malls, and social clubs and partially closed them for a period of two weeks starting from the current date of December 24, with expectations to impose a partial curfew in the number of From Iraqi cities.

These decisions led to a late apology issued on Saturday (12-26-2020) by a number of social clubs and restaurants to their fans for canceling their concerts on the occasion of the New Year and called on their customers to receive their money that was paid to attend it days before the specified date.

This step may be applied in the capital, Baghdad, and all cities of Iraq, except for the Kurdistan region, which will organize unique New Year’s parties for a number of Iraqi and Arab singers.

Prices have risen

It seems that the economic situation in Iraq and the depreciation of the Iraqi dinar have greatly affected the increase in the prices of goods for the New Year to reduce the total purchases by the people, which was reflected in the small number of shoppers, according to what some shops and sellers see.

Iraqi Christians celebrated Christmas with prayers and decorations Muhammad Manati, a shopkeeper in the Shorja commercial district, says, “Our sales have decreased by 60 percent. “He pointed out that the prices of these materials have increased, because they are not in a great way, and there is a general reluctance to buy.

For his part, Omar Salem in the New Baghdad market and owns a cart selling clothes, part of which was devoted to Christmas decorations, is likely to increase demand for what he has before the New Year’s Eve.

Celebration at home

On the other hand, writer and journalist Rahim Al-Shammari believes that the pandemic has directly affected the celebrations of the advent of 2021, indicating that “the celebrations will focus on homes and through congratulations on social media.”

Al-Shammari added that this year will pass as an exceptional year that the world has never witnessed before, except for the Second World War, of the closure of crossings and borders, the mass death and deaths of more than a million people.

It shows that the government’s decisions will limit celebrations significantly, and it is expected that the health authorities will instruct the application of a curfew that preserves the health of citizens and the Iraqi society.

Threats of extremists

In a related context, the journalist and blogger Basem Al-Shara says that the New Year’s celebrations will be less than the previous one due to the difficult economic conditions in the country, especially the devaluation of the Iraqi dinar, which greatly disrupted the commercial movement.

Al-Shara added that the threat from some extremist movements to target the celebrants will not affect the celebrations, although participation in them is expected to decrease.    https://www.mawazin.net/Details.aspx?jimare=135965

The Dollar Is Rising In The Local Markets … And A Demand For The Dismissal Of The Governor Of The Central Bank Of Iraq

Today, Monday, December 28, 2020, dozens of citizens demonstrated in front of the Central Bank of Iraq, demanding the dismissal of the bank’s governor, Mustafa Ghaleb, and raising slogans describing the governor of the Central Bank that he wants to starve the people, demanding accountability for “corruption banks.”

And the local markets recorded, today, the exchange rate of the dollar rose against the Iraqi dinar, and the exchange rate of the 100-dollar note on the Al-Kifah Stock Exchange in Baghdad reached 141,900 dinars, and in the Erbil Stock Exchange 141,700, Basra 141,700, Sulaymaniyah 141,750, Najaf 142,000, Nasiriya 142,000, Mosul 141,700.

While the Rafidain Bank directed all its branches, today, in Baghdad and the provinces, to adopt the new official price for the exchange of the dollar, (1460 dinars) against one dollar, instead of the old price. ”

https://www.radionawa.com/all-detail.aspx?jimare=22843

Bloomberg: Al-Kazemi Awaits The Worst In The Iraqi Economy

Prime Minister Mustafa Al-Kazemi   Reports  Economy News – Baghdad   The US Bloomberg website confirmed that Prime Minister Mustafa Al-Kazemi is waiting for the worst economically, due to the inability of oil to maintain its prices as US President Joe Biden eased sanctions on Iran.

Economics News publishes the transcript of what Bloomberg wrote:

The outrage over President Donald Trump’s decision to pardon four American mercenaries who killed 17 people in Baghdad may bring an exceptional form of relief to Prime Minister Mustafa Al-Kazemi and the Iraqi political elite during at least the current news cycle; People will direct their anger at Trump, not at them .

But the humiliation and injustice stemming from the amnesty of Blackwater security guards will not distract Iraqis much from the wounds and humiliations they inflicted on their leaders, and the minds that will remember the horrific Nisour Square massacre in the fall of 2007 will soon return to the grim reality today, and the bleak outlook for next year. .

A warning came about the windy winds coming towards them at the end of last week, when the government reduced the Iraqi dinar by about 20% against the dollar, and thus the government will be able to economize more dinars from its dollar-denominated petroleum exports, which finance 90% of government expenditures. Al-Kazemi defended the devaluation – the first since the US-led invasion in 2003 – saying it was a “preemptive step” “to control inflation. But most Iraqis today face a high cost of living, because most of what they consume, including basic food items, is imported in dollars .

Moreover, there was some dismal news in the draft 2021 budget that was approved by Al-Kazemi’s cabinet this week, and Parliament is awaiting passage. The proposal will attract the most attention with a new income tax for middle- and high-class public sector employees.

The prime minister sought to ease the matter by reducing his private salary by 40%, and the wages of ministers and members of parliament by 30%. But this move is unlikely to moderate the reaction of the people, who view the entire political class as irreparably corrupt .

Employees in the public sector face a triple blow: a government is struggling to pay their wages, has reduced their income, and for middle- and high-class workers it suggests keeping 15% of it as taxes. And do not forget that the state is the largest employer in the state, with about 4 million employees, 3 million retirees, and another million receiving social security assistance .

Growing anger in the public sector has already taken to the square, which has been filled with anti-government banners for more than a year. Early this month, security forces shot government employees demanding their wages in the northern Kurdish region, killing at least seven people. Protesters set fire to government offices and political party headquarters.

The leadership in Baghdad is preparing for more of these fires across the country. Most of the anger will be directed at the prime minister at a time when he needs street support for vital economic reform plans. Being responsible without a large political base, he does not expect much solidarity from the Iraqi political parties that rely on control of ministers and government agencies to maintain patronage networks .

Perhaps the worst has yet to come for Al-Kazemi, who is to see oil prices continue to decline amid fears that new strains of the Coronavirus will prolong the economic pain resulting from the epidemic. Iraq’s 2021 budget assumes that oil will be at $ 42 a barrel. Even if the effects of the epidemic are excluded; That price might prove difficult to sustain if President-elect Joe Biden eases sanctions on Iran, which will allow it to boost oil exports next year .

In light of its heavy dependence on oil exports to obtain revenues, and the restrictions resulting from OPEC production cuts that prevent it from exporting further; Iraq is already feeling the pressure of lower prices, and the government is desperately trying to get down payments for long-term contracts. So far, only the Chinese company, ZhenHua Oil , has approved the game, and sealed a $ 2 billion deal .

This deal will not save the damage to the Iraqi economy, as the International Monetary Fund expects that it will shrink by 12% this year, and that the budget deficit will reach 22% of GDP. The United Nations expects the poverty rate in Iraq to double to 40 %.

In light of the expected political turmoil, what can be said about the outlook for 2021 are the worst. And starting January 21, there will be no “Trump” to offer Kazemi the distraction that people pours out of their anger on . Source: Bloomberg   Number of observations 188 Date of addendum 12/27/2020

https://economy-news.net/content.php?id=23328

Al-Kazemi: We Are Now At A Crossroads, And My Authority Is Not Self-Satisfying

Time: 12/28/2020 15:00:16 Read: 3,016 times   (Baghdad: Al Furat News) Prime Minister Mustafa Al-Kazemi chaired today, Monday, an expanded meeting, which includes ministers and a number of heads of independent bodies, security agencies and the Elections Commission, to activate the mechanisms of supporting the electoral commission and the electoral process. Stressing that power is not self-satisfying, as he put it.

“The central mission of our government is to hold early elections, as it is an exceptional government by all standards, as it is the product of a popular movement on the one hand and a demand for reference and political forces that seek change on the other hand,” Al-Kazemi said in a statement.

He added, “The successive governments since 2003 have made the transitional period a sustainable period, and this is one of the biggest reasons that have made the mechanisms sterile.”

He continued: “We are now at a crossroads, after three basic goals have been achieved in this transitional period that we are leading now, the first of which is an independent prime minister who does not belong to any of the political blocs, an independent election commission, and a fair election law in which the one who gets the highest votes wins.” .

The Prime Minister indicated that “we have an opportunity to succeed in restoring the people’s confidence in the state, the political system and democratic mechanisms, by establishing fair and fair elections that will achieve the stability of the country.”

He pointed out that “my authority is not self-satisfying, but rather it is the burden of carrying out early elections, and then we will have accomplished the historic mission entrusted to us, and we are serious to complete this task.”

And he added, “We will not allow uncontrolled weapons to move and threaten the citizen’s freedom, security and confidence in the electoral process.”

Al-Kazemi explained, “We have assumed this secretariat and honored it, and a date was set for the elections and the election financing law was sent, and before that we visited the commission and asked it to determine its needs for the purpose of voting on it in the Council of Ministers, and our meeting today is nothing but evidence of our seriousness to accomplish this historic mission.”

He added, “We need the political forces and Parliament to resolve the issue of the Federal Court, in order to complete the requirements of the entire electoral process.”   LINK

The Association Of Private Banks: 42 Banks Have Loaned Thousands Of Projects At 329 Billion Dinars

Pratha News Agency81 2020-12-28   The Iraqi Private Banking Association announced, on Monday, that 42 banks granted loans in the amount of more than 329 billion dinars as part of the one trillion initiative launched by the Central Bank to the commercial, residential, service and agricultural sectors.

The Executive Director of the Iraqi Private Banks Association, Ali Tariq, said in a statement that “The Central Bank of Iraq launched an initiative to support small and medium enterprises and allocated an amount of 1 trillion dinars to the banks,” explaining that “42 private and government banks granted loans in the amount of 329 billion dinars, which contributed to support Thousands of small, medium and residential enterprises. ”

He added that “the initiative continues until now, and grants loans to citizens at an interest rate of 3.5% when the loan amount is less than 20 million dinars, and 4% when the loan ranges from 21 million dinars to one billion dinars.”

Tariq pointed out that “the agricultural sector had its share of loans 6.84 billion dinars, the industrial 46.57 billion dinars, the commercial 100.5 billion dinars, the service 86.15 billion dinars, the housing 48.52 billion dinars, while there were loans at the grant stage of 40.5 billion dinars,” pointing out that “the loans allocated to The residential sector is 100 million dinars, at 4% reducing interest, and with a repayment period of 15 years.

Tariq pointed out that “the initiative to lend 1 trillion dinars to citizens is still continuing to revitalize the economy on easy terms. The application is made directly through the banking sector and is granted after studying the feasibility of the project.”

The Central Bank of Iraq announced the launch at the end of 2015 the One Trillion Initiative to finance small and medium enterprises, with the aim of encouraging young people to invest in the agricultural, industrial, commercial and service sectors.   http://burathanews.com/arabic/economic/383336

An Economist Advises The Central Bank Of Iraq To Stay Away From Lending In Order To Preserve Its Budget

Monday 28, December 2020 09:31 | Economical Views: 430  Baghdad / NINA / Economist Raad Twaij called on the Central Bank of Iraq to deal transparently with the size of its cash reserves and to accurately represent its legal personality as a first-class monetary institution.

Twig said in a statement to the Iraqi National News Agency ( NINA ): “The central bank should not give the opportunity to other parties to talk about false data about the size of its cash reserves, which has an impact on monetary stability and undermines public confidence in the central bank and the monetary situation of the country.”

He pointed out: “The governor of the Central Bank of Iraq, in his last television interview, did not reveal the size of those reserves, which he described as good,” stressing: “This must be determined in the form of statements and not verbally.” Suspect

The economic expert continued: “We advise the Central Bank of Iraq to stay away from lending at this critical time, in order to preserve its general financial budget.”  https://ninanews.com/Website/News/Details?key=878730

Parliament Sets A New Date For An Emergency Session To Discuss The Economic Crisis

12:15 – 12/28/2020  The information / Baghdad ..Member of the Parliamentary Economic and Investment Committee, Nada Shaker Jawdat, revealed, on Monday, that a new date has been set for the emergency session to discuss the market crisis, indicating that Parliament will not allow any prejudice to the simple rights of citizens.

“The House of Representatives set a date for the seventh of next month to hold an extraordinary session to discuss the implications of raising the dollar on the market,” Jawdat said in a statement to / the information.

She added, “Parliament cannot continue to remain silent about the government about compromising the salaries of employees, manipulating the prices of the dinar, and harming citizens.”

Jawdat explained that “the only possible action is to reduce the salaries of special grades, as well as to issue a comprehensive economic plan to ensure a reduction in the total dependence on oil in the budget.” https://www.almaalomah.com/2020/12/28/512452/

Talabani Announces The Agreement Between Baghdad And Kurdistan On The Budget And Awaits Coordination

Editing date: 28/12/2020 16:03 • 74 times read  [Erbil-Where]  The Vice President of the Kurdistan Regional Government announced, on Monday, that an agreement had been reached with the Iraqi government on the 2021 budget,

He said during a press conference after a meeting with the Parliament of Kurdistan, “We are ready to deliver 250 thousand barrels per day to the federal government and we have confirmed that to them more than once.”

He added, “We need more coordination between the Kurdish political forces to pass the budget law in the Iraqi parliament, according to the quota set for the region.”

And during our meeting today, we presented all the files to Parliament and assured them that the regional government has always tried to reach an agreement even with previous governments such as the government of Adel Abdul Mahdi and the current government headed by Al-Kazemi.

He also confirmed that tomorrow there will be a meeting of the National Union’s political bureau that he will participate in, without giving further details.   http://www.alliraqnews.com/modules/news/article.php?storyid=105663

Al-Haddad: Amendments And Transfers To Be Made To The 2021 Budget

Parliament. “Internet”  Money  and business  Economy News – Baghdad  The second deputy speaker, Bashir Al-Haddad, confirmed, on Monday, that Parliament is awaiting the arrival of the 2021 budget this week, likely to approve the general budget law within a month after it reaches Parliament.

Al-Haddad said that “the draft budget law for 2021 did not reach the House of Representatives, but it is expected that the project will arrive during the current week.” According to “conscious.”

It is likely that “next month, the budget bill will be read for a first reading and then the second reading, and extensive discussions will take place in the relevant committees, such as the Finance Committee and inside the parliament, where there will be changes and sharp discussions about the articles, chapters and articles of the law.”

He continued, “It is possible to make adjustments to the budget, such as reducing expenditures or transferring them in the chapters or requesting the government to amend some paragraphs.”

He pointed out that “the period of discussions on the draft law and voting on it takes from 20 days to a month.” Number of observations 135 Date of addendum 12/28/2020

https://economy-news.net/content.php?id=23349

The Kurdish Delegation Informs The Kurdistan Parliament That It Has Not Obtained A Single Dinar From Baghdad

Pratha News Agency91 2020-12-28   The head of the New Generation Bloc, Kazem Farouk, announced, Monday, (December 28, 2020) that the Kurdish negotiating delegation informed Parliament that it did not receive a single dinar from Baghdad, while warning of renewed protests in Kurdistan.

Farouk said in a press conference that “the negotiating delegation informed the Kurdistan Parliament that it did not receive a single dinar from Baghdad in accordance with the fiscal deficit law,” calling on the regional government to “demonstrate good faith with Baghdad to prove its seriousness of the agreement with the federal government.”

Faruq added, “The Kurdistan Region delegation goes to Baghdad and demands its share of Basra’s oil imports and its border outlets, while the region sells its oil and its imports do not go to the citizens of Kurdistan or to Baghdad, in addition to the region’s border outlets full of smuggling operations,” wondering, “How can Baghdad agree with The territory in this case? ”

Faruq added that “the regional government pays salaries once every two months and cuts 21% from it. It also did not pay salaries for five months of the current year, and there is a lack of transparency in oil contracts for Kurdistan,” noting that “in the year 2019 the volume of oil imports of the region reached more than 8 billion A dollar, but more than half of this amount is not known. ”

Farouk warned of “renewed protests and an explosion of the situation in the event that no solution is found to address the living conditions,” explaining that “the citizens of Kurdistan will not give up their rights at all costs.”

It is noteworthy that a Kurdish delegation headed by the Vice President of the Kurdistan Regional Government, Qubad Talabani, held talks with the federal government over the past few days regarding the share of the Kurdistan region in the financial budget.

Talabani announced on (December 22, 2020), reaching an agreement by the federal government in Baghdad regarding the region’s share in the budget.    http://burathanews.com/arabic/news/383354

Digital Economy

Monday 28th December 2020   37  Dr.. Omar Hussein

The communications and information technology sector is witnessing significant growth at the present time, which contributes to supporting the country’s ambitions to move forward in the process of economic development and achieve the vision of Iraq 2030, which aims to build a safe, unified, fair and sustainable environment and achieve economic diversification under the appropriate management of the country’s resources.

Technology is a fundamental factor in achieving these goals during the current digital age, and the importance of the communications and information technology sector is highlighted in building a smart and connected society to contribute to diversifying the economy, enhancing productivity and developing competencies and thus building a knowledge-based digital economy.

Digital technologies contribute to empowering various sectors and enhancing the economic value to keep pace with the fourth industrial revolution, and modern communication technologies such as the fifth generation and artificial intelligence will be the main factors in strengthening the social and economic development paths in Iraq over the coming years.

By nurturing local talent, strengthening the IT and communication infrastructure in Iraq, and building bridges of cooperation between the public and private sectors, we can build a cohesive ecosystem that enables development plans and elevates the Iraqi technological experience to new levels. We stress here the importance of the partnership between the public and private sectors as a pivotal factor in achieving these goals. * PhD in Engineering / Iraqi University

https://alsabaah.iq/38090/%D8%A7%D9%84%D8%A7%D9%82%D8%AA%D8%B5%D8%A7%D8%AF-%D8%A7%D9%84%D8%B1%D9%82%D9%85%D9%8A

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