Samson: By the end of this year, we will suffer a financial deficit of 40 trillion dinars
10:00 – 26/06/2020
Between a member of the Parliamentary Finance Committee Haneen Al-Qaddou, that Iraq will suffer from a budget deficit by the end of this year to reach 40 trillion dinars, stressing at the same time the need to control non-oil imports such as ports, taxes and collection to reduce the deficit to the natural limits.
Al-Kiddou said to “Information”, “There are expectations that the government will present the budget on June 30 to the House of Representatives in order to vote on it.”
He added, “There are speculative figures related to operating expenses, imports for each month, expenses for the coming months, employee salaries and ruling expenses, as we will suffer at the end of this year from a financial deficit of 40 trillion dinars.”
And he stated that “overcoming the financial crisis must be through applying pressure on the border outlets, collecting electricity, taxes and other imports to reduce the financial deficit to normal limits.”
Edna: This is Powerful. ..Just like Frank said. MM laid out a beautiful analysis a few posts ago on the determination of Iraq to monitor it’s Ports, Tariffs, Boarder Crossings etc, and to possibly implement these (Mechanisms) July 1. Seems to be the common tread many of these Financial articles. Control of Boarders etc. Couple that with the above article :”expectation the budget could arrive by months end”…wow. So IMO what they do at the Boarders, Ports, and with Taxes and Tariffs on July 1 just might. ….just might. …be a BIG DEAL…
YoungSC: By law they cannot send the budget after june 30th. A law that was passed earlier this month in parliament to have them vote and pass the budget no later then june 30th imo.
GodLover: Samson or Don……..can you provide this article young_sc is referring to by chance?
Samson: Post 111 2nd June
Parliament binds the government to a specific date to send the budget law
The House of Representatives voted, on Wednesday, to oblige the government to send the budget law no later than the end of this month.
A parliamentary source told Mawazine News that “the House of Representatives voted on the formula for the following decision: The government should expedite sending the federal budget bill for the year 2020 at the latest by 6/30/2020.”
The Speaker of the House of Representatives directed the General Secretariat of the Council, earlier today, to address the General Secretariat of the Council of Ministers for the purpose of sending the budget law for the year 2020. LINK
Samson: Al-Kazemi on the strategic dialogue with America: It was confirmed for the first time the recognition of national sovereignty
26th June, 2020
Prime Minister Mustafa Al-Kazemi commented on the strategic dialogue between Iraq and America, indicating that the assertion was made for the first time to recognize national sovereignty.
Al-Sharq Al-Awsat newspaper quoted Al-Kazemi in response to a question about the strategic dialogue between Iraq and the United States. Held on June 11th, he said that “the strategic dialogue that took place between Iraq and the United States achieved important goals, as it was emphasized for the first time through this dialogue to recognize national sovereignty, which is important in terms of the nature of the future relationship with the Americans.”
He added, “During the dialogue, the withdrawal of the American forces was scheduled, which is an important development in terms of how to deal with this presence.”
He continued: “The forces that remain will be negotiated in the future,” indicating that “Iraq really needs security and military support; but it has no military adventures, and I will not allow that.”
Samson: Deputy: The reform paper will save more than 20 billion dollars
26th June, 2020
Al-Masoudi said: “The comprehensive reform paper is expected to reach parliament within 60 days,” noting that “this paper aims to prepare an integrated strategy in the direction towards the real development of industrial and agricultural projects, in addition to the development of the communications sector.”
He added that “the House of Representatives voted on the borrowing law, as there is no alternative to it at the present time, and among the conditions of the parliament was to fulfill the government by preparing a government reform paper.”
Prime Minister Mustafa Al-Kazemi had previously discussed with the Parliamentary Economic and Investment Committee the prospective reforms paper to face the challenges facing the country and the discussion of the white paper prepared by the Cabinet, which includes economic, financial and administrative reforms, plans and strategies to meet the challenges facing the country. LINK
Don961: The central bank governor comments on the concept of foreign currency reserves and its uses
Economie 2020/06/25 22:31 284 Baghdad today – Baghdad
Iraqi Central Bank Governor Ali Mohsen Ismail commented, on Thursday, about what some are deliberating regarding the uses and concept of foreign currency reserves (cash, deposits, bonds, gold).
Alaak said in a statement, “Unfortunately, some people understand the foreign reserves of the Central Bank as a surplus invested abroad … the real financial surplus the government has from surplus funds that invest in various forms such as sovereign funds, investment funds, and generational funds, among others.”
He added, “As for the reserves at the central bank, they correspond to the dinar issued to the government or others. It is a cover for the local currency and it must not be less than a level of adequacy determined by international principles, otherwise the value of the local currency (the dinar) will collapse as happened in the previous system.”
And the relationship continued, “As for how the reserve is managed in terms of the type of currencies and the type of instruments, they are governed by internationally recognized rules and in all central banks, and we follow the same rules and in the subject complex and broad technical details.”
It is noteworthy that when the government borrows internally, it is tantamount to withdrawing from foreign reserves because the dinar that it borrows is pumped into the market and turns into a demand for mostly imported goods and goods and the payment of foreign liabilities, and it (the government) does not place a dollar in exchange for it to lead to the withdrawal and reduction of foreign reserves. For more details about the above statement, please click on the link below: Click here LINK
Samson: Parliamentary Finance: Iraq suffers from “two ends of corruption” that have accused its bounty over the years
10:52 – 26/06/2020
Member of Parliamentary Finance Committee Jamal Kujer affirmed on Friday that Iraq suffers from both sides of corruption, accusing its goods of long years.
Cougar said in an interview with the “information”, that “corruption in Iraq is large and varied and has taken on great proportions in the past years, but the two most dangerous sides are in local governments and ministries, as they take a large part of Iraq’s annual budget to finance development and service projects.”
Cougar added, “Iraq’s financial crisis calls for bold decisions in the framework of facing corruption and reforming the economic structure and ending the file of abuses on the windows that constitute significant revenues for the state treasury with its various addresses indicating that without real reform in Iraq the financial crisis will be more serious despite financial borrowing in order to alleviate the budget and give flexibility in financing salaries without any problems.”
Iraq suffers from an acute financial crisis for months after the collapse in crude oil prices, whose revenues constitute about 90% of the country’s annual budget. LINK
Samson: Integrity seized, accused of embezzlement of 300 million dinars in the Oil Products Distribution Company in Diwaniyah
13:20 – 26/06/2020
The Federal Integrity Commission announced the appointment of an employee of the Oil Products Distribution Company – Diwaniyah branch; For having, along with other defendants, embezzled the amount of (300,000,000) million dinars.
And the department explained that “all filing forms that were corrupted and forged were seized by the officials responsible for the pieces, as well as seizing the seals of a branch of a government bank in the province.”
She added, “A fundamentalist minutes of the seizures were organized in the process, and it was presented to Mr. Diwaniya Court Judge, who specializes in the integrity cases, who decided to arrest the accused, and prevented the travel and seizure of the money of another accused fugitive.” LINK
Don961: The most attractive dollar despite trillions pumping … The yuan is hostage to Beijing and Washington ties
– 14 Hours Ago
The eyes of investors in the global exchange markets began focusing on the second half of this year and the prospects for an economic recovery with the gradual opening of international borders, the operation of economies, and the end of social isolation.
Experts believe that the ability of countries to curb the spread of the Corona pandemic and healthy coexistence with it will be one of the main factors that will determine the currency trends during the current year. This is simply because this will determine the speed of the economy returning and recovering from the pandemic. The strength of exports usually determines the demand for the currency.
In this regard, the currency expert at the Dutch bank, “ING”, Francisco Pisol, expressed optimism about the economic future during the second half, saying “strong economic data raised hopes for a rapid return to global economies after the isolation and closures … but investors will monitor the new outbreaks of the Corona pandemic and its repercussions On the operation of the facilities, ”according to the CNBC channel. The cases of the disease as of Wednesday, more than 9.2 million cases.
But it seems that the question that dealers face in the exchange markets at the present time is whether the dollar will be dealt with on the basis that it is a “safe haven currency” or not, amid growing concern about the return of the pandemic after its recession in the past month.
“The dollar will weaken against the major currencies in the event of an increase in corona cases in America,” said Samir Gul, currency expert at the German bank “Deutsche Bank”, in comments to CNBC.
But so far, the largest dealers in the exchange market from banks and companies prefer to buy dollars over other currencies, for fear of a crisis of shortages in dollars.
The Bank for International Settlements estimates in the report the size of the global shortfall in dollars at about $ 13 trillion, and therefore exchange experts expect that this massive shortfall in the dollar will support the green paper’s exchange rate on the short level, even if the US government continues to pump other trillions into the American market to support economic growth.
In terms of the Chinese yuan, which is linked to a limited movement margin at the dollar exchange rate, Gul believes that the yuan has become stable in recent weeks and is not subject to major shocks in the offshore areas, as happened during May.
The Chinese yuan will benefit from price stability from the signing of the initial trade agreement between Beijing and Washington, as well as from positive economic data released from China.
Usually, major investors in bets on the Chinese currency fear the Chinese central bank, which usually interferes strongly in the market buying and selling, as it has huge dollar reserves of more than 3 trillion dollars.
Therefore, its intervention could cause huge losses for exchange dealers. It is also mentioned that the statements of Jerome Powell, President of the Federal Reserve Board, at the beginning of this month in which he confirmed that he would maintain a low interest rate on the dollar for a long time in order to support the financial markets, contributed to the yuan exchange support, as it is linked to the movement of the bank interest. On the dollar.
However, the yuan’s exchange rate remains hostage to the trade relations between Beijing and Washington amid fears of a financial embargo on Chinese banks and preventing them from using the dollar.
Experts expect that the results of the US presidential elections in November will have a major impact on the yuan exchange movement. Donald Trump’s chances of winning the risk are likely to raise the risk to the yuan, if it goes ahead in the opinion polls.
As for the British currency, analysts believe that the British pound has become a “dangerous currency” due to the great fluctuation in its price against the dollar and the euro. Consequently, it began to lose its appeal to international exchange dealers.
The British are suffering from the British government’s reluctance to open the economy and decide on an agreement on a trade relationship that delineates a clear picture of the fees for its imports and exports to the European bloc, Britain’s largest trading partner. The Boris Johnson government is still negotiating with the European Union over the form of trade and economic relations after Brexit.
“We see a lot of turmoil in the exchange rate of sterling compared to other major currencies such as the US dollar, Japanese yen, euro, and Swiss franc,” said Kathleen Brooke, currency analyst at British Minerva, on Wednesday.
As for the European currency, analysts believe that the positive data published yesterday about the optimism in business sentiment will support the demand for the euro, and thus will rise against the dollar.
The euro exchange rate depends on the directions of the German economy, which usually leads the recovery machine in the euro area, and on Germany’s foreign exports, which determines the global demand for the euro.
According to Reuters, the Ifo Economic Institute said, on Wednesday, that the institute’s business climate index rose for the second consecutive month in June due to companies believing that the worst possible harm as a result of the public isolation that aims to contain the Corona virus has passed.
New Arab LINK