DELTA: THANK YOU SAMSON FOR THE HARD WORK…………NOW WE ARE TALKING …FINALLY……….AWESOME NEWS….
Samson: The House of Representatives has finished reading two laws and addresses an oral question to the Finance and Planning Ministers
Minister Allawi pointed out that there are three types of loans, including commercial that the Iraqi government has moved away from, borrowing from governments and the third by borrowing from international development institutions such as the World Bank and the Arab Fund for the purpose of investment, especially those related to the requirements of improving the electricity sector by activating previous economic agreements with my company. Siemens and General Electric
Stressing the importance of reviewing the exchange rate so that the Iraqi economy enters the circle of competition with the interest of the International Monetary Fund in the issue of the exchange rate, noting that the ministry received an amount of 15 trillion dinars in full to meet the needs of salaries.
MilitiaMan: Delta, I agree that now we are talking! As this piece is a good one. They have no liquidity, yet they have money for salaries in the tune of 15 trillion. How does that work?
They point out that the have moved away from borrowing from commercial outlets, governments and third parties, like the World Bank and Arab Monetary Fund. So the 15 trillion mentioned is interesting and makes one wonder if it is an equivalency to that amount and from a source they talked about in recent past. Having to do with the secondary markets.
They mention the importance of the exchange rate so that the Iraq economy enters the circle of competition (i.e., international, global status, etc..) with the interest of the International Monetary Fund, in the issue of the IDQ exchange rate.
The exchange rate is an issue that the IMF would need to sort out.
Once Iraq (if not already) gets the rate to the IMF, that is an issue alright, imo a big one! As the world will need to know what it is and will need to adjust accordingly, think tenders too.
The SDR basket when the IQD exchange rate is Article 8 compliant and changed to a true value for the currency to reflect all assets will have effects felt around the globe, value wise. All boats rise with the tide.. ioo..
So, back to the 15 trillion dinars for the ministry to meet salaries needs. The last three months of the year are in question. Hence, I mentioned the equivalency. Maybe the only way they are to get the equivalency is that they may have agreed to adjust the rate from the looks of it, thus, the issue of the IMF’s interest in the exchange rate.
Well hello.. They would need to know that!!.. The whole idea is to get to a market economy. Getting to a market economy with a new exchange rate would allow Iraq to get to a secondary market environment to get loans for the equivalency to that amount to pay salaries.
The CBI told us last week, Tuesday real close that they have put a dead line out for this past Sunday for the tenders for the reconstruction effort in Mosul. There were meetings with decision makers, Central Banks and large corporate entities, etc..
Prior to the tender deadline thus, the meetings that preceded the tenders suggests those in the meetings may have had or would have had a need to know the rate at which to make the tenders equivalent to.
So if they received an equivalent amount of monies to pay salaries, then, imo the IMF knows the rate too and would allow the money to be freed up or loaned out to meet the last three months of the year if that is the case. I’ll bet the monies will be transparent and monitored by the new electronic system they will also use at the borders.
So, lets jump to the 2020 budget.
Imo The 2019 FMLA is required for the 2020 Budget as a component of it. The COM has that before them since this last Wednesday. That is the prime ministers cabinet.
That component of the 2020, has not made it to the Parliament yet. Why? Imo, because they don’t have a need to know just yet. But, they will have a need very soon.
In fact, it appears that the PM has a plan to show it early next week. So lets see if there are any surprises between now and then.
The FedNow system (block chain) is about to come on line, so lets see what they days bring.. Cross border clearing may be in the cards imo.. ~ MM