Samson: Kurdistan Alliance retreat from the decision to challenge the federal budget

2018-03-10 at 15:47 (Baghdad time)

The Kurdistan Democratic Party (KDP), the head of the parliamentary legal committee, Muhsin al-Saadoun, announced on Saturday that the Kurdistan Alliance has withdrawn its decision to challenge the federal budget for 2018, pointing out that the appeal decision needs a unified Kurdish decision.

He said Saadoun, in a statement reported by the Patriotic Union of Kurdistan viewed by / Mawazin News / “The Kurdish blocs will not resort to the Federal Court to challenge the federal budget for 2018 contrary to what is rumored.”

He added that “the blocks sought to prevent the passage of the draft federal budget law because of the reduction of the proportions of the Kurdistan region to have failed,” noting that “the decision to appeal or object to the budget law needs a unified Kurdish decision of the top leadership in the region.”

The House of Representatives ended on Saturday (March 3, 2018), marathon the budget by voting on its paragraphs, to go a long way and resolve the debate has been going on for months by approving the general budget for 2018 deficit exceeded the 12 trillion and 514 billion Iraqi dinars.  LINK


FaithPrevails:  Pip PIp Hoooray keep up the work to Parity     FP………….BTW time to stop the Auctions IMO NOW

Samson:  The low exchange rate of the dollar in the stock market and local markets

10th March, 2018

The exchange rate of the dollar fell in Kifah and local markets on Saturday 10 March 2018.
Bursa Al-Kifah Baghdad 122.12 dinars, while the prices for Thursday was 122.600 dinars.
Selling and buying prices in the

money market Selling price of the dollar = 122,500 dinars.

The price of buying the dollar = 121.500 dinars     LINK


Samson:  A delegation from the Kurdistan region is visiting Baghdad to receive the financial dues of three circles

10th March, 2018

A delegation from the Kurdistan region will visit Baghdad tomorrow to receive the salaries of the last three months of last year to the directorates of passports, civil status and the national card.

Salar Abdullah said in a statement to “Khandan”, that the visit of the delegation of the province to Baghdad, comes at the request of the Ministry of Interior in the federal government, to receive these receivables.

He noted that the Iraqi government after the referendum in the Kurdistan region and disputed areas, did not pay the salaries of months (October, November and December) for the employees of the three directorates mentioned.   LINK


DLR:  MAYBE THEY WANT A RATE?????????????????????????????????????

Lkosi0:  That’s what I was thinking….I’m thinking this may be a good thing….maybe Iraq need to include those conditions the IMF wanted from them…

GSA:  A.  Do the right thing…..push that button….

Samson:  The International Monetary Fund rejects the Iraqi budget for 2018

March 10, 2018

Sumer News: The IMF announced its rejection of the federal budget for 2018 which the House voted to pass last week.

“The International Monetary Fund, announced its rejection of the financial budget for 2018, because it was contrary to the agreement signed between Iraq and the International Monetary Fund,” adding that “the agreement between Iraq and the International Monetary Fund, obliges Iraq to implement A set of conditions including the abolition of jobs and not to add financial burdens on the budget. ”

“The inclusion of the budget by the government and the parliament by the decisions to install contracts and the reinstatement of their contracts and other financial burdens that have led the Monetary Fund to reject the budget,” noting that “the decisions of the Iraqi government and parliament accelerated for electoral propaganda.”

The House of Representatives, voted last Saturday, March 3, the federal budget law for the year 2018.   LINK


Don961:  Contradictory news about the refusal of the “International Monetary Fund” Iraqi budget

Baghdad – Aktham Saif al-Din
10 March 2018

There were conflicting reports that the International Monetary Fund (IMF) rejected Iraq’s budget  for the current year, while officials urged Iraq to meet the fund’s conditions, as it is in the interest of the country.

“The International Monetary Fund, announced its rejection  of the Iraqi financial budget for 2018, because it was contrary to the agreement signed between Iraq and the Fund,” noting that “the agreement between the two sides requires Iraq to implement a group Of the conditions, including the abolition of jobs, and the addition of financial burdens on the budget.

“The inclusion of the budget by the government and parliament decisions to install contracts and the return of persons whose contracts and other financial burdens, which prompted the Monetary Fund to reject the budget,” noting that “the decisions of the Iraqi government and parliament accelerated for electoral propaganda.”

The “new Arab” tried to make sure of official government bodies, but did not get a response. The officials declined to make the announcement at a time when no official government position had been announced.

The member of the parliamentary finance committee, MP Abdul Qadir Mohammed, the “new Arab”, that “talk about the IMF’s refusal to balance Iraq, is not yet confirmed, as there could be a statement from the IMF in this regard, may be just Media talk, “noting:” We have not received any government confirmation on this, and the government may be silent on the subject. ”

He added that “the IMF set a set of conditions to help Iraq in terms of credit, the most important transparency, and that Iraq so far did not meet this condition, as it is not the required level.”

He pointed out that “the rejection of the budget is not the Fund, but it can not help Iraq in terms of fiscal deficits and loans and the restructuring of Iraqi credit credit, if not meet the conditions, which will have significant negative effects on the country.”

He said that “Iraq’s response to the conditions of the Fund, if it has been made, is in favor of Iraq. Transparency is the foundation of building the state, building the economic structure and building up the strength of the Iraqi currency, which is one of the main points of the IMF. Improving credit for Iraq’s cash and restoring confidence in the economy, all of which have positive effects on Iraq. ”

 He stressed that “if Iraq has the real intention to meet the conditions of the IMF, he will be able to, and can take steps in this direction.”

The Iraqi parliament voted on March 3 last year on the budget of 2018, after a political dispute lasted for several months   link


Connie:  Yes, it is good what  President Trump is doing!! Just remember, this is the same media who exclaimed that if Trump was elected president, China and the whole Asian market along with the US markets, would crash and burn!! The US would become unstable…yadda yadda….  One needs to look at what and why..the big picture for now and our future.   IMHO

Don961:  How is the currency market preparing for the global trade war?

09 March 2018 06:28 PM

Mubasher: In foreign exchange markets, investors are not waiting to see if all customs threats will lead to a full-scale trade war.

According to a Bloomberg report, some fund managers have begun transferring funds to traditional havens such as the yen, while others have moved away from the currency altogether and even those who do not bet too much will resort to hedging in case of any situation.

The concern is that US President Donald Trump’s plan to impose tariffs on steel and aluminum imports will trigger a wave of reprisals that hinder global economic expansion.
The European Union’s response to the proposed tariffs on metals was through the preparation of retaliatory measures against the famous goods, which are currently studying which American products will be charged.

On the other hand, the resignation of ” Gary Cohen, ” adviser to US President Donald Trump economic trends of investors, as the yen rose while the value of the peso and the Canadian dollar.

Kohn is a leading advocate of free trade policy, which means his resignation is due to his refusal of customs duties, which have already turned into a formal decision, but Trump later confirmed that he would return to work again and that the order to resign was temporary .
Strengthening the Yen

“The currencies can be very small, but they have strong effects,” said Jean Tannozo, portfolio manager at Columbia Thredneedel. “Few investments can have a big impact.

The first reaction came from the Japanese yen, then the Swiss franc, but to a lesser extent, with the Japanese currency reaching its highest level since 2016 in conjunction with tariff disclosure.

Following the unveiling of the Trump tariffs, the US dollar weakened markedly to last year’s losses, while Treasuries rallied as markets headed for less risky assets.

pulling out

According to Tanuzu, the response to the trade skirmishes looming was to gradually reduce currency risk.

He explained that he acted on this concern last year with expectations that NAFTA negotiations would turn into a panic, reducing exposure to the Mexican peso and the Canadian dollar in Colombia’s Strategic Income Fund.

The fund had about 4 percent of the currency divided between the two currencies before selling its deals in mid-2017 as well as the Canadian dollar cut late last year.
“This is probably the first time that the IMF does not have the Canadian dollar or the Mexican peso,” he said. “This is mainly due to negotiations on the trade side.

Trump has clearly used tariffs as a bargaining chip in the NAFTA talks , citing the possibility of canceling the steel and aluminum tariffs on Canada and Mexico if a new and fair agreement on the North American trade deal is reached.

This week, the Canadian dollar fell to its weakest since July.

The administration is also considering tariffs on a wide range of Chinese imports, according to people familiar with the matter.

For some investors, the US move against China would signal an increased risk of mutual retaliation.

The UK’s money manager, Adrian Owens, does not ignore the rhetoric about trade. For him, the best way is to move between currencies that can withstand temporary volatility.
Owens focuses on the currencies of Norway and Sweden, because the latter currency looks cheap while the data point to the strength of the economy.

Owens, who runs his company for about $ 170 billion, said he liked this distinctive brand, acknowledging that one of the risks was the worsening of the situation with Trump to a trade war
To protect against the risk of falling krona, accompanied by rising trade tensions and undermining global economic growth as well as demand for Norwegian oil, he hedged through centers that profit from the yen’s gains.

The losers

Mike Moran, head of economic research at Standard Chartered, said a decline in global production and a reduced risk appetite would also threaten emerging-country currencies.
“This type of commercial warfare has not provided a good environment for emerging markets at all,” he said. “These countries are more sensitive to global trade, and therefore any damage is detrimental to them.”

In contrast, Richard Benson, head of portfolio investment at Melnym Global, which manages assets worth $ 14 billion, is betting on the Chinese currency as it will benefit from trade tensions.

The dollar dilemma

The question is, what does this mean for the dollar? World trade war can cause a dilemma, so explain the situation analysts at Barclays Bank.

Analysts also expect the US economy to slow by 0.2% following the steel and aluminum tariffs.

But this trend will be amplified depending on how US trading partners will respond to the recently signed plan.

Late Thursday, US President Donald Trump signed a resolution imposing tariffs on imports of steel and aluminum from all countries, with the exception of Canada and Mexico.

This is a worrying development for the United States, as trade and budget deficits will make Washington more dependent on global demand for its bonds than ever before.

Tanuzu, portfolio manager at Columbia Thredneedel, describes the current situation as a double-edged sword, explaining that the dollar should eventually be strengthened in the short term against currencies that will be affected by the tariff decision.

But the dollar could remain under long-term pressure as a general requirement to finance the large and growing deficit in the current account.   link

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