KTFA (MilitiaMan & Don961)

  In MilitiaMan 

MilitiaMan: If we go back to the article in post #43 from Samson (below) and the implications of things that COINCIDE, there is some serious things at play now. They told us they had 72 hours for to be ready for the second reading of the 2021 budget. Well they have sped that up to Monday, 24 hours. They need to do a positive change to the exchange rate at the same time of the HOR meeting or real close to it. ioo Looking very good, very! imo

Don961:  Deleting 3 zeros or printing the 100 thousand dinars denomination .. Experts determine the best to face the change of the exchange rate – URGENT

Baghdad Today – Special

A few days ago, two proposals have been put forward to reduce the effects of the devaluation of the dinar against the dollar, which was determined by a decision of the Ministry of Finance to fix the exchange rate at 1470 dinars against the dollar after it stabilized for more than 15 years, up to 1200 dinars, which caused bad effects on citizens, raising the prices of basic materials and reducing the value of salaries

Parliament finances clarify its position

A member of the Parliamentary Finance Committee, MP Abd al-Hadi al-Saadawi, revealed, on Saturday, his committee’s opinion about deleting 3 zeros from the Iraqi currency, according to the proposals presented

Al-Saadawi said in an interview with (Baghdad Today), that “the monetary policy in Iraq is one of the exclusive powers of the Central Bank and the financial policy is subject to the authority of the Ministry of Finance and the government, which is concerned with it, and it is not from the powers of the House of Representatives and the Finance Committee, meaning that changing the exchange rate or removing zeros from the currency is not relevant. Absolutely out of the House of Representatives.

Al-Saadawi added, “We do not see any tendency at the present time to delete zeros from the Iraqi currency by the central bank,” pointing out that “even the exchange rate of the dollar is subject to the powers of the central bank and it was recently raised after a decision inside the bank and if the government has another opinion about the exchange rate, then this matter Up to her ”

Expert: There are pros and cons

In turn, economist Safwan Qusay says in an interview with (Baghdad Today), “There is no urgent need to issue a new paper currency with a denomination of 100,000 Iraqi dinars or more, and the proposal to delete the zeros requires a bank effort and withdraw the circulating currency”

On the other hand, he added, “the level of circulation of the Iraqi dinar is very easy, therefore printing a large currency in denominations of 100 thousand Iraqi dinars or more will facilitate the process of large financial exchange,” indicating that “the responsibility and task of issuing these categories of currencies rests with the Central Bank”

He continued, “The process of issuing money needs financial cover in hard currency or gold, in addition to the market’s need for time to absorb the level of devaluation of the local dinar that the government has recently undertaken

Qusay pointed out that “the step of deleting zeros from the currency raises the level of confidence in the dinar and reduces the burden of transferring cash as well as calculations, but conducting it now may confuse the market because it needs to withdraw the dinar from traders and inject a new currency”

Turn 

Earlier, the former budget director at the Ministry of Finance, Hazem Hadi, confirmed that the devaluation of the local currency in the country caused a shock in the market, while the shock that occurred was necessary to finance the budget deficit instead of endangering state sovereignty, as he described it

Hazem Hadi said, in a televised interview with (Baghdad Today), that the advantages of the financial budget for the next year are “saving money and avoiding borrowing, because the size of the debt to Iraq has become very large and reached 160 trillion dinars, including internal and external loans”

Hadi added, “The internal debt decreased automatically with the rise in the value of the dollar against the dinar,” indicating that “the shock that occurred in the market was inevitable, because covering the financial deficit by borrowing includes major disadvantages, including the loss of state sovereignty”

He pointed out that “the failure of the economic policy in the country in the past years has made Iraq a market for imported goods, and the Iraqi market has been flooded with these commodities, and also led to a decrease in revenues due to the decline in the price and production of oil, and all these factors caused a major financial crisis for the Iraqi economy”

Since the collapse of oil prices earlier this year, Iraq is facing an unprecedented liquidity crisis, the government of Prime Minister Mustafa Al-Kazemi has had to borrow from the reserves of the Central Bank to pay nearly $ 5 billion a month, representing public sector salaries and pensions

The Iraqi local markets in Baghdad and other provinces have been turbulent since last week, after the decision to devalue the currency to compensate for the deficit in the 2021 budget

The decision sparked a wave of anger in the Iraqi street, but Al-Kazemi defended his government’s move and said that he had two options: “Either the collapse of the regime and enter into overwhelming chaos, or we enter into a Caesarean section for reform

Al-Kazemi cited during a speech at the Iraqi Cabinet session held last Saturday, in several countries, including South Korea and Singapore, when they had previously taken “difficult decisions” in order to reform the economy  LIN

MilitiaMan: To protect the citizens is to delete the zeros!! imo This is HUGE.. Wow. ~ MM

“”She hopes that these procedures will coincide with discussions within the House of Representatives on the budget, and it should be noted that the main policy measures to protect the poor and the vulnerable have been included in the budget and discussed in the minister’s statement regarding the budget.”

Agenda for the parliament session next Monday

The House of Representatives announced, on Saturday, the agenda for its session scheduled for .next Monday, at 3 pm The agenda included 9 paragraphs, including the completion of the second reading of the 2021 .Budget Law

Baghdad Today – Follow-up Al-Fateh Alliance MP Mukhtar Al-Mousawi presented an apology to the Iraqi people on the 2021 budget on Saturday 9-1-202. “I apologize to the Iraqi people, because the budget is supposed to be enacted within 24 hours after the start of the debate over it, because the people are awaiting approval, but I say, unfortunately, that there are points that must be amended,” Moussawi said in a televised statement followed by (Baghdad Today).

He added that “there are 17 points that require amendment and not to hasten to approve the budget, including raising the value of taxes for cigarettes and alcoholic beverages from 20-50%. This increase, if achieved, will obviate the imposition of taxes on the entry of employees.”

Earlier, a member of the Finance Committee in Parliament, Jamal Cougar, confirmed that the salaries of employees will be spent for the current month of January, while indicating that there is no deduction in salaries, unless the Federal Budget Bill for 2021 is passed in the House.