A central bank advisor responds to fears of the collapse of the dinar after the dollar’s price increase LINK
MilitiaMan: The focus is on their reserves and that there is strength to the dinar. The recent devaluation was on purpose for a purpose. That purpose is to have liquidity to support the public finances while the de dollarize the country.
Once they strengthen the currency, the county or citizens will support their own currency and will abandon the dinar..
Modifying the exchange rate is on the table with House of Representatives this next week, as early as Tuesday – Wednesday.. Lets see what they do. imo ~ MM
Samson: Parliamentary Finance announces the arrival of the budget bill to the House of Representatives
26th December, 2020
The Parliamentary Finance Committee announced, on Saturday, the arrival of the budget bill to the parliament.
A member of the committee, Ahmed Hama Rashid, said in a radio interview, “The budget bill has reached the inclusion of the House of Representatives, and according to the bylaws, it is read first, and then it is studied by the Finance Committee and a second reading is read.”
He added, “After the second reading, the remarks of MPs and political blocs are taken,” indicating that “the Finance Committee needs from 20 days to 30 days to approve the budget.” Link
The Parliamentary Finance Committee informed the Presidency of the House of Representatives, today, Sunday, that it will hold continuous meetings as soon as the General Budget Law arrives in Parliament for discussion and approval as soon as possible. It is likely that the 2021 budget will be approved at the end of this December.
“The government has postponed sending the budget to the House of Representatives so far due to the high oil prices in the global market, which requires reformulating numbers in the budget sections to reduce the financial deficit ceiling and increase revenues,” the committee’s reporter, Ahmad Al-Saffar, stated
He explained that “the cabinet will meet next Tuesday and may approve the budget then or hold a special session to discuss and approve the budget next Wednesday, which means that the budget will reach the Presidency of Parliament early next week.”
The official spokesman for the Council of Ministers, Minister of Culture, Hassan Nazim, announced last week that the Council of Ministers decided to postpone its session devoted to discussing the draft Federal Budget Law 2021, until yesterday, Saturday, as it has not yet been held.
MilitiaMan: I am sure everyone by now can see the postponements are intentional. They clearly have a goal, a purpose and it is on purpose imo. They are holding their cards (exchange rate) close to the chest as long as they possibly can. It is clear as a sun filled cloudless day. They are going to update the exchange rate before the end of the year.
One can say, well they did already from 1190 – 1460 and one can say they are to do it again based off todays articles from 1460 – 1660. They did say in the past they were going to devalue too, and they have also said they were not going to devalue, as it will hurt the citizens and yet, they did devalue and may again. The latter would be even worse on the citizens. But, is that really the goal to hurt the citizens and devastate the economy? I highly doubt it!!
There was an article from the US Federal Reserve Bank recently that told us that countries can devalue and revalue their currency. Well, Iraq has told us they may do all of the above many times and in many ways that are just not all that clear or were bald face lies.
Hindsight shows they did tell us though one way or another that they are or were going to devalue the currency and also revalue it. They are now telling us below that they are de dollarizing and will be heading to use digital dollars in the future for tracking.. Transparency.
They also tell us they need to or are now providing liquidity with the Dinar but only until the USD gets scarce. The liquidity is temporary. Going from 1190- 1460 and possibly to 1660 is providing that liquidity, painful as it may be short term.
Well if we look at the Auctions lately and even to day, proves they show us a massive change of late and that supports scarcity is upon Iraq now for the USD. imo. A necessity of the IMF on Iraq..
They will need to cease the use of the USD as we know it. The future will be very different and it will curb corruption.. So, be patient and hopeful as there is no need to be worried or upset for that the devalue sets the stage for a revalue.. imo.. ~ MM